The transition to Futures trading

[tech/a]

How can it be a leading indicator when it has to happen before it can be read? You are waiting for it to happen first. You cannot place a trade based on its information before it happens because there is no information, therefore its lagging

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CLICK TO EXPAND

As promised.

 

[pavilion103]

Range tightening.

Near possible resistance.

Worth a bet either way?

 

[tech/a]

Range tightening.

Near possible resistance.

Worth a bet either way?

I'm looking at it this way



That extreme volume Bullish opening bar showed a lot of volume to the long side.
Either short covering or new positions.
If there is little resistance at the triangle and old resistance we will know the answer
There has been a testing of the high without a great deal of refusal---so far.
Thats why I think this is building to the up side

Have to exhaust supply at the top of these levels before moving on.
These longish Tails at the top are telling.

 

[pavilion103]

Good perspective. Glad I posted the question.

Are you going to take this one? A widths stop around 6492-5?

 

[tech/a]

Good perspective. Glad I posted the question.

Are you going to take this one? A widths stop around 6492-5?

Yeh I have a buy in
If it takes out the close resistance Ill move to B/E
Initial stop 6493 ish but will make up my mind when/if filled.

Moved buy stop to 05 I want some proof!

 

[tech/a]

Stop 94

 

[CanOz]

How do you like my new divergence indicator?

 

[tech/a]

Can looks nice.

Talking to PAV while trading.
Stopped at B/E then short 502

Stop at 506
Buy stop at 484

Off to bed

 

[Caveroute]

How do you like my new divergence indicator?

Looks great Canoz.

But how do you make sense of all of that in real time or is at an EOD tool ?

 

[CanOz]

Looks great Canoz.

But how do you make sense of all of that in real time or is at an EOD tool ?

Actually its the TF (Russel), on top of the CL contract. It does lead the market from time to time. I just put it up as a matter of interest.

The rest is straight forward Cav, volume on a 5 minute chart, volume balance (what hit the bid vs lifted the offer, then a time and sales beside the DOM.

In fact, there are no indicators on my charts, other than one MA.

 

[Boggo]

That was worth staying up for

 

[tech/a]

Yes, I agree, especially for futures

However if your a VSA/Tradeguider enthusiast I guess your locked in, not that I know anything about it!

An interesting comment.
Could you expand on exactly what it is
That a proponent of VSA is locked into?

 

[Caveroute]

An interesting comment.
Could you expand on exactly what it is
That a proponent of VSA is locked into?

VSA == Volume Spread Analysis - right ?

So, I'm guessing volume plays an integral role in the methodology.

 

[Trembling Hand]

Err?



That is no different to this,

So as a leading indicator when I see extreme RSI values I see where it is in the context of landscape and ask what effect is that extreme value going to have

It's lagging. You have to wait for it to show up then you have to think how you are going to interoperate it.

 

[kid hustlr]

'Pork bellies! I have a hunch something exciting is going to happen.'

EDIT: In all seriousness you're 100% right. It's just the ability/experience to notice these things as they are playing out. The style we are working on starts with the basics

 

[Caveroute]

Don't want to be picky but volume, like price, is not an indicator, therefore it cannot lag or lead.

I think were talking volume and price action here.

The issue I think is can volume 'action' add any insights into what price will do next.

If you have something that your comfortable with, and it works for you, then fine.

It's all shades of grey anyway.

 

[tech/a]

VSA == Volume Spread Analysis - right ?

So, I'm guessing volume plays an integral role in the methodology.

Yes but how am I locked in to anything?

 

[Caveroute]

Yes but how am I locked in to anything?

Using volume as part of the analysis, you cannot disregard it - that's all.

As I said earlier, if it works for you great - I've got no problems with it.

 

[tech/a]

Err?

View attachment 53747

That is no different to this,



It's lagging. You have to wait for it to show up then you have to think how you are going to interoperate it.

View attachment 53748

T/H

I've marked all the bars for discussion.
Sure at strong resistance or Support you would make a decision for direction.
The Volume and Range of bars indicate where I anticipate price to go.
Experience with price action will determine how I play the trade going forward.

I think its leading as it comes before price moves in the direction of the effort or in response to the exhaustion of Supply or demand. Future price action can and is attributed to specific spurts of Volume and or range and or lack of.

Happy to agree to disagree.
Or disagree to disagree.

 

[havaiana]

I know 1 that's 100% accurate.

And another one that's pretty accurate.

Any guesses what they are kiddies?

I can't for the life of me work out what this is and I have such a sore head now. I'm going to have a shot at it in the hope you will come back and answer

time?
and maybe for the second one some sort of measurement of current volatility or range or something along those lines??