Market Statistics (Volume Histogram, VWAP with SD bands) - page 7

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Limstylz
198
Limstylz  

Danger

When looking at market profile/statistics, its easy to get bogged down in the indicator as an actual trading signal. This should not be so and was never meant for this purpose.

They were designed to show areas of likely supply/demand and current areas of accumulation and distribution. The only important thing here is how price reacts around the areas of the POC/PVP and VWAPS (well, this is less so in my opinion and you could probably get the same information using a weighted average tailored for time frame and cycle... if you follow market harmonics).

It is better to focus on three things...

1. trend if following the VWAPS

2. breakout/bounces at the POC/PVP for entry as this particular part of the chart is the only TRUE indication of where the majority of market participants actually are at the time the POC/PVP is drawn

3. the shape/levels of the bell curve in the histogram as this will show likely areas of support and resistance, and depending on how price reacts at those levels you would add positions or close out.

When you try to add any other type of calculations or mess around with any of the other theories, you will find that its a waste of time.

With this particular type of trading strategy (and with any other IMO) the old adage is true: trade what you see.

Walander
576
Walander  

What can you actually tell about anything? Such incoherent paragraphs of thought make me wonder why you even bother.

Using this for anything less than 1H charts would be stupid. Price action reacts to specific points of price- but they are not brick walls at pin point levles.

fxcruiser
1052
fxcruiser  
akift:
hi fxcruiser,

If you already know that thread I really would like to hear about your suggestions about how can we use this approach for forex. If not if you have time please check it. Your recommendations are highly welcomed.

Thanks again for posting.

Akif,

Akif,

Thank you for starting the thread.

I am familiar with Jperl's threads at TL forum. To be honest, I only read a couple posts/pages. I will not comment on it here as it maybe construed as negative. I will be glad to discuss it with you privately if you wish.

ENJOY!

fxcruiser

fxcruiser
1052
fxcruiser  
Walander:
Using this for anything less than 1H charts would be stupid. .....

With due respect, sir, I beg to disagree. "Stupid"? I don't believe so. Fast? Yes. Risky? Well, that's an inherent factor in the business.

ENJOY!

fxcruiser

Walander
576
Walander  

I don't know FXcruiser.

I'd respect your opinion, but regardless what you've given this forum was a broken system you left hanging and false promises of a group that never was created.

I'll agree to disagree.

fxcruiser
1052
fxcruiser  
Walander:
I don't know FXcruiser.

I'd respect your opinion, but regardless what you've given this forum was a broken system you left hanging and false promises of a group that never was created.

I'll agree to disagree.

Walander, WOW! I agree NOT to argue!

ENJOY!

fxcruiser

akifusenet
292
akifusenet  
fxcruiser:
Bear in mind that I only overlay the market statistic values and VWAP to my own trading method chart setups on Ninja Trader and MT4. Somehow, the levels are not plotting the same. Regardless, the idea is there though I prefer the NT version.

A lot of things can cause this. I dont know how it is implemented in Ninja. Does it start from a fixed date or is it using last x ticks(or bars-if it is bars then question comes which tf, so it should be ticks.:)) MT versus NT... Wide availability what brings me close to MT. As far as I know only GAIN provides free Forex feed to NT. And for the speed MT is uncomparable to any other product which I have seen.

fxcruiser:

I am familiar with Jperl's threads at TL forum. To be honest, I only read a couple posts/pages. I will not comment on it here as it maybe construed as negative. I will be glad to discuss it with you privately if you wish.

ENJOY!

fxcruiser

I will be glad to .

akifusenet
292
akifusenet  

forex journal article

In April 2009 issue of Forex Journal Mark Whistler has a splendid article about "Why Many Technical Indicators Failing the Current Market"

He is saying next issue he will give examples. I couldnt find those issues if anybody has it. I would be glad if he can post it here.

Akif,

Limstylz
198
Limstylz  

Is this aimed at me?

Walander:
What can you actually tell about anything? Such incoherent paragraphs of thought make me wonder why you even bother. Using this for anything less than 1H charts would be stupid. Price action reacts to specific points of price- but they are not brick walls at pin point levles.

Walander,

I notice this post came after mine although I can't see how this is relevant to what I posted. Please explain yourself.

pavaka
4412
pavaka  

:)

Limstylz:
Walander, I notice this post came after mine although I can't see how this is relevant to what I posted. Please explain yourself.

keep your friends close and your enemies closer...HaHa

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