Volume-Price-Patterns-Context & Catalysts, an Application to Trading Stocks

[tech/a]

Further to Greggles discussion on DYL
This is a fascinating topic that I have
researched and refined over at least
10 yrs.

It really needs to be presented in its entirety as charts and
explanation are really necessary to show a complete picture.
To gel everything together.

Topics

(1) Volume Control Bars
(2) Range
(3) Context
(4) Subsequent Bars
(5) Subsequent Volume
(6) Patterns, type, length, Context price and volume within
(7) Context, When and Where,Time frames
(8) Catalysts
(9) Trading examples both past and live.


Covering both long and short aspects of trading stock.

This will take some time and the post/s will be lengthy.
I'm sure it will be worthwhile and I'd like it to be something
people can take away and use in their own trading.

Perhaps when I publish it here we could leave it here for a month then
move it into the members section.---or not?

I'm sure you will find this topic as fascinating and practical as I do
when trading stock.----could be a week or so---sorry for the delay.

I've added a poll.
People like me who take a good chunk of our time putting helpful topics together like to have feedback at least for our time and effort.
This is my way of finding out if people have an interest. Thanks.

 

[greggles]

I'm very interested tech. I agree it's a fascinating topic and I hope that others think so as well.

Surely there are plenty of learner traders here at ASF?

 

[Joe Blow]

Register your vote folks if you'd like to see a thread like this on trading. As tech/a said, it does take a lot of time and effort, so some support and expressions of interest would really be appreciated. Thanks!

 

[dutchie]

Great topic tech/a. Very interested. I've tried a few times to get my head around this.

 

[debtfree]

Tech/a, looking forward to your thread on this subject. A valuable resource for all and ASF for years to come.
I always like seeing your views on charts through your eyes, seeing things that are there for all to see but only a few take notice.

Wishing you all the best and thanks for putting this together, appreciate it very much.

Cheers ... Debtfree

 

[Triathlete]

This will be a valuable topic to all, should bring out some interesting conversations.....Thanks Tech/A

 

[hallph]

Definitely interested, I'm sure we can all learn a thing or two (at a minimum)

 

[galumay]

It is of absolutely no interest to me, the whole approach is totally contrary to anything I believe or understand about how the world works. None the less I voted in favour of the thread being useful because there are many who are interested in TA and trading and from what i have seen tech/a is of the most enthusiastic and experienced proponents of it.

Its a generous and extremely time consuming offer to the ASF community, we should encourage anyone who is willing to put this much effort into documenting their personal approach and strategy.

 

[tech/a]

Ha Galumay I love the raw honesty

I’d be surprised if in the coming weeks you don’t have at least a genuine curiosity.
Even a fascination!

 

[So_Cynical]

Im with galumay, pretty much zero interest from me as it has little to do with what i do, however voted it up as i do appreciate the effort and think its a great subject for others.

 

[Triathlete]

I think it is going to be an interesting thread to see how others use T/A there are so many different ways to use it and especially across the broad spectrum of trading and investing and also over the different time frames from intraday to long term....I still use a combination of TA/FA myself......Looking forward to the many discussions and ideas......

 

[HelloU]

Ha Galumay I love the raw honesty

I’d be surprised if in the coming weeks you don’t have at least a genuine curiosity.
Even a fascination!

yes, I suspect most will, due to
(3) Context
(7) Context..
(8) Catalysts
I for one will be reading and (keep ur legs closed) looking under the table........and am pleased that with our new found ability to express our diversity of rationales that we have gained some greater tolerance...

 

[tech/a]

yes, I suspect most will, due to
(3) Context
(7) Context..
(8) Catalysts
I for one will be reading and (keep ur legs closed) looking under the table........and am pleased that with our new found ability to express our diversity of rationales that we have gained some greater tolerance...

Donald/Kim--- is that you?

 

[Parse]

Got my vote, definitely interested in volume. To me it's a big pointer at the lower end of the market. Being able to understand it better would be good.

 

[tech/a]

FORMAT

After chatting with Joe I think the best way to present this is as Joe suggests.
I will write each section and present it as a unit. While I'm putting together the next unit if there is any discussion it can happen during that process. I'm hoping there will be a flow and the thread will not become disjointed.

BACKGROUND

I was first introduced to price volume and pattern through Candlestick charting.
With the advent of Volume Spread analysis and Tradeguider with Tom Williams and Gavin Holmes
introduced through Nick Radge my interest became even stronger.

I realized that in technical analysis there is a great deal of information on Volume,Price,Patterns,Time frames 100s of books countless seminars,millions of charts but I couldn't find anywhere where it was all
put together---showing how everything in its individual setting influenced or contributed to the future on a chart.

It was soon apparent that as an isolated bite of volume or a pattern or a group of bars ---as individuals they at best were "INDICATIONS" of "Possible" Future price action.

To me a chart is a story--a book of crowd behavior played out bar by bar in all time frames.

Much of what you will see here is my own observation and implementation,hopefully filling a lot of blanks --- blanks that are left in much of the texts and analysis presented to all of us.

Tech

 

[tech/a]

Tradeguider have put out a great deal of excellent material.
For those of you who dont have this here is a download.

An excellent source of information.

http://www.tradeguider.com/mtm_251058.pdf

 

[tech/a]

Volume Control Bars an introduction Short and Long Examples.
This is daily time frames
They play out in a very similar fashion in ALL time frames.
If your trading longer time frames this will be helpful on daily or weekly charts.
Shorter time frame Hourly/30min/15/min.
The more volume the more influential the bar and the zone.

These bars equate to effort (Generally) as do gaps and multiple High Volume bars.





Long Side




Next topics
Around Volume control Bars.
Discussion
A look at time frames weekly to 15 min
Some to follow
Whats the thinking here?
RANGE
A look at individual bars
A look at Clusters/Patterns
Context and catalyst.

 

[Newt]

I'm in. Thanks for taking the time to do this Tech.

 

[investtrader]

How about 10 live trades. Just day of entry and then day of exit. Otherwise just theory.

 

[lindsayf]

Re what is likely to happen here....I will have a go.

Very high volume indicating institutional involvement, perhaps profit taking.
Looks like ther is a lot of selling in that bar.
I would now wait to see how price responds to that volume control bar High and low.
If price drops under it a short side trade using the box low as resistance might be viable.
If price pushes back up then a buy using the top of the box as support may be viable.
It would depend how it looked, which levels had been testsed ie context and structure would be a big factor in How to use this vcb.