.... Don the DeltaMan
Thank you for your kind words.
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- Joined Dec 2015 | Status: Trader | 1,519 Posts | Online Now
Thank you for your kind words.
- Joined Dec 2017 | Status: Trader | 3,710 Posts
I don't need to be good at the game, only good enough to beat my opponent,
- Joined Dec 2015 | Status: Trader | 1,519 Posts | Online Now
Hello Don Pato, I mentioned you in a post on the WTI thread, I'm looking at the hourly volume, seems we have a little bit of a spike at higher prices, trying to see what you may see, the price could be moving higher and I'm claiming absorption, could I get your view, if you have a mo, thanks Detector.
There was indeed absorption at the highs of the day on this market which quickly moved down. But now toward the end of the day it appears buyers are coming back in to support the lows. Let me see if I can find hourly WTI futures on the internet
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- Joined Dec 2017 | Status: Trader | 3,710 Posts
I don't need to be good at the game, only good enough to beat my opponent,
- Joined Dec 2015 | Status: Trader | 1,519 Posts | Online Now
I found this at barchart.com. This is the Dec 19 futures contract for WTI. Intraday was quite active today. I used the 6 min chart (which I think is best intraday for futures). Just using the raw tools to see this is what I saw using the following definition of absorption: Price closes < 50% off the extreme on rising volume. This is the general definition I've been using when I don't have access to more detailed information.
Please also remember this is in retrospect so it is easy to look back at the completed day and say where one should've recognized signals...but doing that on the right hand edge is a little different...this is why I always try to show right hand edge trading on my screen shots.
On this day's trading it appears that the absorption phase called just about every swing point.
Please also remember this is in retrospect so it is easy to look back at the completed day and say where one should've recognized signals...but doing that on the right hand edge is a little different...this is why I always try to show right hand edge trading on my screen shots.
On this day's trading it appears that the absorption phase called just about every swing point.
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- Joined Dec 2017 | Status: Trader | 3,710 Posts
I don't need to be good at the game, only good enough to beat my opponent,
- Joined Dec 2017 | Status: Trader | 3,710 Posts
I don't need to be good at the game, only good enough to beat my opponent,
- Joined Dec 2017 | Status: Trader | 3,710 Posts
{quote} Its my pleasure, I hope there was some value in what I said. Keep on "detecting".
D
I don't need to be good at the game, only good enough to beat my opponent,
- Joined Dec 2017 | Status: Trader | 3,710 Posts
I don't need to be good at the game, only good enough to beat my opponent,
- Joined Dec 2017 | Status: Trader | 3,710 Posts
{quote} Hello again detector. The first thing I need to point out and I repeat...I have mentioned this many times on this thread the last time was post# 667. Intraday volume studies are not as reliable for tick volume. I see here you are using a 4 hr chart and MT4 and this tells me that no matter what market you are looking via MT4... it is tick volume you are looking with this platform. But note at the bottom of your chart how volume comes in waves... Do you see this?...
Good call on the TA at the right side of the chart, something I rarely, if ever do, the ironic part, this area is my selling point, similar to the set up now emerging, however, price has passed through the white 200ma hence my long view, thank you again for being patient, within a few paragraphs my vantage point is growing,
Detector
I don't need to be good at the game, only good enough to beat my opponent,
- Joined Dec 2015 | Status: Trader | 1,519 Posts | Online Now
{quote} Don Pato, you have been very kind to me in your answer, I see what you say, I should take 100 lashes LOL, will read through you thread again, definitely something I would like to master. Good call on the TA at the right side of the chart, something I rarely, if ever do, the ironic part, this area is my selling point, similar to the set up now emerging, however, price has passed through the white 200ma hence my long view, thank you again for being patient, within a few paragraphs my vantage point is growing,
Sometimes the desire to "get it right"..."right now" makes you take trades that you then stand back and say, "HUH?? Why did I take that trade?" I highly recommend keeping a journal along with your trade log (or screen shots with notes - this is what I do) to keep your thinking straight and understand and learn.
Here is an example of one my my recent futures trades and the notes that go along with them:
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- Joined Dec 2017 | Status: Trader | 3,710 Posts
{quote} It looks like you are lashing yourself enough for the both of us. I too made this mistake until I sat down (in sackcloth and ashes) and thought through this logically. If you are more inclined to trade intraday, may I suggest a the futures market during the active US session. The data is far more reliable and transparent and the concepts are learned much faster as you are trading and looking at smaller time frames...however this also requires that you think and take action more quickly too... Sometimes the desire to "get it right"..."right...
Detector.
I don't need to be good at the game, only good enough to beat my opponent,
- Joined Dec 2015 | Status: Trader | 1,519 Posts | Online Now
... getting late over here and need to be up in 5hrs,
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- | Joined Aug 2009 | Status: Trader | 15 Posts
Hi DonPato and fellow traders
Still getting to grips with the ideas on the thread. I was hoping to share some of my analysis to see if I'm on the right track. I actually took the short on EU for other reasons but in retrospect want to see if the methodology discussed in the thread played out. I have not yet come to terms with the volume profile analysis so showed the reasoning using the volume and volume delta.
Firstly, EU is in a downtrend on the weekly chart, and retraced back to an area that I was expecting some reaction.
1) On the daily, on the first move up, there was a climax with some exhaustion with lower volume on the final up candle.
2) This was followed by some absorption - Ideally would we prefer to see higher volume on this absorption candle with more buying activity as well?
3) In the second move up again, a climax on higher volume.
4) Followed by an indecision bar on even higher volume with selling pressure, showing absorption. This was followed by an attempt higher on lower volume showing exhaustion.
So on both legs up, all 3 phases were present, but more noticeable and stronger on the second move?
Any feedback would be appreciated.
Thanks, and happy trading.
Still getting to grips with the ideas on the thread. I was hoping to share some of my analysis to see if I'm on the right track. I actually took the short on EU for other reasons but in retrospect want to see if the methodology discussed in the thread played out. I have not yet come to terms with the volume profile analysis so showed the reasoning using the volume and volume delta.
Firstly, EU is in a downtrend on the weekly chart, and retraced back to an area that I was expecting some reaction.
1) On the daily, on the first move up, there was a climax with some exhaustion with lower volume on the final up candle.
2) This was followed by some absorption - Ideally would we prefer to see higher volume on this absorption candle with more buying activity as well?
3) In the second move up again, a climax on higher volume.
4) Followed by an indecision bar on even higher volume with selling pressure, showing absorption. This was followed by an attempt higher on lower volume showing exhaustion.
So on both legs up, all 3 phases were present, but more noticeable and stronger on the second move?
Any feedback would be appreciated.
Thanks, and happy trading.
- Joined Dec 2015 | Status: Trader | 1,519 Posts | Online Now
Hi DonPato and fellow traders Still getting to grips with the ideas on the thread. I was hoping to share some of my analysis to see if I'm on the right track...
... 4) Followed by an indecision bar on even higher volume with selling pressure, showing absorption. This was followed by an attempt higher on lower volume showing exhaustion...
Note how the majority of the buying was near the highs of the day and the majority of the selling (in red) was also in this same area. However the buying seen largely outweighs the selling...yet...price fell and finished as you described it "undecided". This is the very definition of absorption. On the very next day there was buying (shown in light blue) but this buying was weak and could not even come up to challenge the previous day's high. This is the classic example that the three phases don't always occur in order. In this case the exhaustion phase was last...sometimes the climax phase is last. Most often however, the absorption phase is last.
...So on both legs up, all 3 phases were present, but more noticeable and stronger on the second move? Any feedback would be appreciated. Thanks, and happy trading.
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