Downloaded and about to watch right now. Thank you again for everything.
- | Commercial Member | Joined Jan 2007 | 1,461 Posts
In my latest thread ( Q&A ask me anything about trading) I mentioned an often neglected information source to figure out what the larger traders ( institutions etc) are doing/going to do.
That is when you see higher than normal volume. This is meaningful even when an increase in volume is expected (Market Opens and Closes etc) as well as when it just appears, seemingly out of nowhere. High volume denotes increased interest in either entering or exiting a position on the matching candle i.e. at a price covered by that candle.
Here is a nice example from Lance Beggs (of Your Trading Coach). But he doesn't appear to realise the full significance until rather late in the move:
There is a High volume down candle just before the open, it is followed (as expected) by a continuation candle with even higher volume.
So what are the institutions doing?
Surely if they were selling, then the next candle would be another continuation candle! - But instead its a high volume reversal candle!
To Ray's students, this means that the bigger traders are very likely Buying at discounted prices ready for a positive Open.
This indeed is what it proves to be.
And finally Lance shows his entry:
So why didn't Lance buy at the close of that first green reversal candle? - Perhaps he can't read volume, or is too nervous.
He got in around 8396, when the first (aggressive) entry would have been at 8384, a more cautious entry would have been on the break of that last red candle at around 8385. There was a still more cautious entry available on the close of the reversal candle ( around 8386), then another even more cautious one upon the break of the POC of the recent Balance Area ( 8387 to 8388).
Surely nobody should have missed the entry on the Break of the top edge of the balance area (around 8390)!
Oh well, now it's time to take an initial profit (assuming trading multiple units) on the Opening candle - a large range, large volume candle with a 2 point wick on top.
As Warren Buffett says,you pay a fulsome price for a rosy consensus!
That is when you see higher than normal volume. This is meaningful even when an increase in volume is expected (Market Opens and Closes etc) as well as when it just appears, seemingly out of nowhere. High volume denotes increased interest in either entering or exiting a position on the matching candle i.e. at a price covered by that candle.
Here is a nice example from Lance Beggs (of Your Trading Coach). But he doesn't appear to realise the full significance until rather late in the move:
There is a High volume down candle just before the open, it is followed (as expected) by a continuation candle with even higher volume.
So what are the institutions doing?
Surely if they were selling, then the next candle would be another continuation candle! - But instead its a high volume reversal candle!
To Ray's students, this means that the bigger traders are very likely Buying at discounted prices ready for a positive Open.
This indeed is what it proves to be.
And finally Lance shows his entry:
So why didn't Lance buy at the close of that first green reversal candle? - Perhaps he can't read volume, or is too nervous.
He got in around 8396, when the first (aggressive) entry would have been at 8384, a more cautious entry would have been on the break of that last red candle at around 8385. There was a still more cautious entry available on the close of the reversal candle ( around 8386), then another even more cautious one upon the break of the POC of the recent Balance Area ( 8387 to 8388).
Surely nobody should have missed the entry on the Break of the top edge of the balance area (around 8390)!
Oh well, now it's time to take an initial profit (assuming trading multiple units) on the Opening candle - a large range, large volume candle with a 2 point wick on top.
As Warren Buffett says,you pay a fulsome price for a rosy consensus!
Ian,
During my trading life I have come up to the conclusion that high and lows of previous day will be very important for next trading day.Usually many parked orders will be ready for Market makers to push it beyond that level to triggers stops . Sometimes just touches the high/low of previous day, retraces and retests to finally breakout.
Questions:what have you to say about my thoughts?
I know there are other elements to add like value lines and volume...but still what will be your thoughts to know if MM will push it with hard or smooth on that key levels?
If the previous high and low where not during London and NY sessions should i give them the same importance if high and low were out of NY-LN session?
I hope this message finds you healthy and wealthy
During my trading life I have come up to the conclusion that high and lows of previous day will be very important for next trading day.Usually many parked orders will be ready for Market makers to push it beyond that level to triggers stops . Sometimes just touches the high/low of previous day, retraces and retests to finally breakout.
Questions:what have you to say about my thoughts?
I know there are other elements to add like value lines and volume...but still what will be your thoughts to know if MM will push it with hard or smooth on that key levels?
If the previous high and low where not during London and NY sessions should i give them the same importance if high and low were out of NY-LN session?
I hope this message finds you healthy and wealthy
- | Commercial Member | Joined Jan 2007 | 1,461 Posts
I got a nice simple set-up in an email from Lance Beggs (of Your Trading Coach) back on 24th January. Of course Ray teaches an earlier entry, but since I can't show his version, here is the one Lance uses:
********************************************************************************************************************
Hi Traders,
Let's continue the "trap before RTH open" series, but this time with a trade shared by a reader rather than one of my own.
Happy trading,
Lance Beggs.
Traps Just Before RTH Open - 5
Last Friday at 9:28am, just two minutes before the Regular Trading Hours (RTH) Open, the market suddenly jumped.
That's right - it's a trap RIGHT BEFORE the regular session open.
See here if you missed the prior articles: 
continued in next post ...
********************************************************************************************************************
Hi Traders,
Let's continue the "trap before RTH open" series, but this time with a trade shared by a reader rather than one of my own.
Happy trading,
Lance Beggs.
Traps Just Before RTH Open - 5
Last Friday at 9:28am, just two minutes before the Regular Trading Hours (RTH) Open, the market suddenly jumped.
That's right - it's a trap RIGHT BEFORE the regular session open.
See here if you missed the prior articles:
- http://yourtradingcoach.com/trading-process-and-strategy/traps-just-before-rth-open/
- http://yourtradingcoach.com/trading-process-and-strategy/traps-just-before-rth-open-2/
- http://yourtradingcoach.com/trading-process-and-strategy/traps-just-before-rth-open-3/
- http://yourtradingcoach.com/trading-process-and-strategy/traps-just-before-rth-open-4/
Here is the general idea, in both bullish and bearish form:
continued in next post ...
- | Commercial Member | Joined Jan 2007 | 1,461 Posts
[Lance Beggs email of 24th January continued from prior post:]
Well today we got the second version - a trap through overnight resistance which rapidly fails.
And so we'll be looking for opportunity to enter SHORT.
Let's try something different though...
Rather than sharing my trading, I'd like to share a chart from a trader who has recently been making good progress with the YTC Price Action Trader methodology.
Having read the recent "trap before RTH open" articles he's been aware of this opportunity, but hasn't managed to catch one prior to this session.
This time was different.
His email:
The "BOF" that he refers to is the YTC Price Action Trader name for the trap. The PB is the first setup short.
Hunter has included the following 30 second chart showing his trade entry and management.
Awesome!
Hunter - well done! That is a great trade.
The only thing better than catching a trap before the open, is seeing someone else learn from my prior articles and actually catch one themselves.
Some final words from Hunter:
Happy trading,
Lance Beggs
***********************************************************************************************************************************
I have no comments other than to say that this is also an example of how much easier it is to trade with 3 or more units than with just a single unit.
Well today we got the second version - a trap through overnight resistance which rapidly fails.
And so we'll be looking for opportunity to enter SHORT.
Let's try something different though...
Rather than sharing my trading, I'd like to share a chart from a trader who has recently been making good progress with the YTC Price Action Trader methodology.
Having read the recent "trap before RTH open" articles he's been aware of this opportunity, but hasn't managed to catch one prior to this session.
This time was different.
His email:
Hi Lance,
I hope you've had a great week.
I just wanted to follow up again to say THANK YOU! I've come so far in my trading since I purchased your book back in October. I read all of your Twitter posts and newsletters and the topic that kept standing out was the BOF just before the open and how to trade it. I kept watching it happen and would miss the opportunity to get involved. Consequently, that lead to me trying to find another BOF or TST in the opposite direction of the opening drive, which resulted in small losses that were frustrating. I finally decided that when I see this again, I will get involved on a PB or CPB and if I miss the trade then I miss the trade...put it behind you and move on.
Today I saw a BOF just prior to the open on the NQ (I'm still trading the MNQ). I was ready and I executed without hesitation. In hindsight I could've managed the trade a little better but I'm very happy the process I went through to execute this trade. I have you to thank for this. Please know that your posts and newsletters are more helpful than you can imagine...and I know I'm not the only one who feels that way. I attached my chart and this will definitely be one that I will reference regularly.
Thanks again for all you do...have a great weekend!
Hunter
The "BOF" that he refers to is the YTC Price Action Trader name for the trap. The PB is the first setup short.
Hunter has included the following 30 second chart showing his trade entry and management.
Awesome!
Hunter - well done! That is a great trade.
The only thing better than catching a trap before the open, is seeing someone else learn from my prior articles and actually catch one themselves.
Some final words from Hunter:
I really enjoy reading about other traders' experiences and I hope that my experience can help others as well. Just as a reference, in case anyone asks, I use Interactive Brokers for my charts and as my broker. I'm only trading 3 contract lots of the micro futures MNQ, MES, and M2K. I started with 2 contracts and will increase my contract size as I continue to progress. Again, thank you for your encouragement and for all that you do for the trading community. Have a great weekend!
Happy trading,
Lance Beggs
***********************************************************************************************************************************
I have no comments other than to say that this is also an example of how much easier it is to trade with 3 or more units than with just a single unit.
Hi Ian, when I clicked the link, it took me to a list of the studies provided by David for Sierra charts and Rays students.
Hi,
its this link https://www.forexfactory.com/attachm...2&d=1553102519
Not sure why it doesnt work for you, while when I ve clicked on the link in your post, it worked.
Its from https://compassfx.com/early-bird-access-sharp-edge/#top
Where they provide in two different offers these: You Get an Exclusive Order Flow Indicator Suite for Sharp Edge Traders Only (Worth $297) or Order Flow Trading Enhancements Software Suite.
I was trying to reach them, even via FB because their website have some sort of error and I am not quite sure, if they received my message. Do u by any chance have email on them?
Does the exclusive order flow indicator suire consist from more studies? Or its complete list of studies they offer?
Its for sierra chart, right?
I ll PM you my email, please respond there