The correlation between doing and understanding.
A woman I used to know, was a fantastic Fading day trader. The style she employed was rather basic but EXTREMELY effective. To note, she also used the same premise for Value Investment to build and maintain her portfolio.
She had been doing this longer than some of you have been alive, so believe me when I say, she understood the what where and why.
Fading the market is as old as society itself. You have two teams or opponents and you bet on one or the other. And you can spread the risk by adjusting your ratios so even if your original idea fails, you STILL win overall. Now for some people they might know this as a strategy that Hedge Funds use to offset risk and try to 'guarantee' profits. But for normal everyday people, it's also really very simple to do.
You begin with a practice account. You take some time to learn and understand say 10 different trade setups, all from different styles. You partition your computer so you can quickly identify the chosen setups on screen. But you run into a problem. While you try to multi-task, you realize you cannot do ALL of it. At least not in any reasonable time space. So you need to appreciate a new way to let time be your guiding stick. In walks the volume control approach. Some see it as "double/triple top or bottom" etc, but inside the jumbled mess you see painted on your chart by your platform software, is a world where buys and sells dance and congregate. Many assume, or perhaps focus too heavily on buyer and seller psychology OR "tick totals" or "volume", meanwhile, one area that is not appreciated completely is the modern "absence" of legitimate price discovery. Gone are the days where a market can just 'go off with the pixies into the never-never" and make a run up or down and just keep going. So something has to be keeping the market in-check to stop this happening. Yes there are MANY wild ideas out there that try to explain this away, however, the simple truth is you are a TRADER. So your job is to understand what you can to then DO what others will not or cannot.
A volume control situation is when you see subtle oscillation at the extremes of 'usual market activity' after its initial move TO that extreme. Sometimes what people consider the internal of "W or M" movement at the extreme. There are certain aspects of trading volume and tick data of any market that can help here but most is useless as its integrity is based on the premise that the recording procedures are intact and have not been abridged artificially to compensate for any lag, delay or tampering of internal pricing. There have been some rather high profile law suits and court cases surrounding this area in the last 20yrs. So it's important to have a reference to it.
Volume control setups go hand in hand with large players performing profit-on-profit setups, preparing for what they see coming --- a full 180 degrees turnaround of the market back to perceived fair value. THIS is why I have spoken about POP markups because YOU, the trader can do EXACTLY what they do. The only real difference is size of capitalization.
And the woman I spoke of at the start of this post, did exactly what I am speaking about. She wasn't looking for "buy entry" or "sell entry" triggers or "signals". No. She wan't interested in "crowd psychology". No. All she wanted to see was the intricate accumulation and distribution phases that co-operated within the "M and W" type formations we all see building and playing out on our charts.
If you remember, in a previous post I wrote, the POP markup style takes X% of capital and creates a "rollover" effect on that said capital operated within a given time that is specified by the trader. By initially using only a very small amount, she could amplify that money to prepare for a bi-directional trade that usually came blasting out the door when the final accumulation phase was complete. We've all seen these setups - the M or W type of formations where they do their final pullback to the outside extreme to 'load up' for feasibly the last time before the explosive final move to profit towards or at 'fair value' and at times it exceeds this area. If you are not aware of what I mean by fair value or perceived fair value, it's the "centre line or small internal central zone" of channel indicators eg - TMA, MA, Envelopes etc etc. Since it is just a concept approach the fair value "price" is considered dynamic and therefore ever changing but its seen as "living" within the central area of these channel style indicators on the chart and moves along as the market moves along.
The notion of a volume control setup is usually misunderstood by private individual traders because they don't usually account for Options, Equities and Commodities traders who "flip" their capital to make it work VERY hard for them. These intermarket traders in turn, understand the relationship that connects all markets and are not after small nickle-n-dime setups that usually operate well below the Time-to-Price value line. They respect the 24hr day price line and choose to work with it instead of allowing it to work against them........
.
A woman I used to know, was a fantastic Fading day trader. The style she employed was rather basic but EXTREMELY effective. To note, she also used the same premise for Value Investment to build and maintain her portfolio.
She had been doing this longer than some of you have been alive, so believe me when I say, she understood the what where and why.
Fading the market is as old as society itself. You have two teams or opponents and you bet on one or the other. And you can spread the risk by adjusting your ratios so even if your original idea fails, you STILL win overall. Now for some people they might know this as a strategy that Hedge Funds use to offset risk and try to 'guarantee' profits. But for normal everyday people, it's also really very simple to do.
You begin with a practice account. You take some time to learn and understand say 10 different trade setups, all from different styles. You partition your computer so you can quickly identify the chosen setups on screen. But you run into a problem. While you try to multi-task, you realize you cannot do ALL of it. At least not in any reasonable time space. So you need to appreciate a new way to let time be your guiding stick. In walks the volume control approach. Some see it as "double/triple top or bottom" etc, but inside the jumbled mess you see painted on your chart by your platform software, is a world where buys and sells dance and congregate. Many assume, or perhaps focus too heavily on buyer and seller psychology OR "tick totals" or "volume", meanwhile, one area that is not appreciated completely is the modern "absence" of legitimate price discovery. Gone are the days where a market can just 'go off with the pixies into the never-never" and make a run up or down and just keep going. So something has to be keeping the market in-check to stop this happening. Yes there are MANY wild ideas out there that try to explain this away, however, the simple truth is you are a TRADER. So your job is to understand what you can to then DO what others will not or cannot.
A volume control situation is when you see subtle oscillation at the extremes of 'usual market activity' after its initial move TO that extreme. Sometimes what people consider the internal of "W or M" movement at the extreme. There are certain aspects of trading volume and tick data of any market that can help here but most is useless as its integrity is based on the premise that the recording procedures are intact and have not been abridged artificially to compensate for any lag, delay or tampering of internal pricing. There have been some rather high profile law suits and court cases surrounding this area in the last 20yrs. So it's important to have a reference to it.
Volume control setups go hand in hand with large players performing profit-on-profit setups, preparing for what they see coming --- a full 180 degrees turnaround of the market back to perceived fair value. THIS is why I have spoken about POP markups because YOU, the trader can do EXACTLY what they do. The only real difference is size of capitalization.
And the woman I spoke of at the start of this post, did exactly what I am speaking about. She wasn't looking for "buy entry" or "sell entry" triggers or "signals". No. She wan't interested in "crowd psychology". No. All she wanted to see was the intricate accumulation and distribution phases that co-operated within the "M and W" type formations we all see building and playing out on our charts.
If you remember, in a previous post I wrote, the POP markup style takes X% of capital and creates a "rollover" effect on that said capital operated within a given time that is specified by the trader. By initially using only a very small amount, she could amplify that money to prepare for a bi-directional trade that usually came blasting out the door when the final accumulation phase was complete. We've all seen these setups - the M or W type of formations where they do their final pullback to the outside extreme to 'load up' for feasibly the last time before the explosive final move to profit towards or at 'fair value' and at times it exceeds this area. If you are not aware of what I mean by fair value or perceived fair value, it's the "centre line or small internal central zone" of channel indicators eg - TMA, MA, Envelopes etc etc. Since it is just a concept approach the fair value "price" is considered dynamic and therefore ever changing but its seen as "living" within the central area of these channel style indicators on the chart and moves along as the market moves along.
The notion of a volume control setup is usually misunderstood by private individual traders because they don't usually account for Options, Equities and Commodities traders who "flip" their capital to make it work VERY hard for them. These intermarket traders in turn, understand the relationship that connects all markets and are not after small nickle-n-dime setups that usually operate well below the Time-to-Price value line. They respect the 24hr day price line and choose to work with it instead of allowing it to work against them........
.
Real Trading is not gambling.
