ES 40k V
2 trades taken off a volume-based chart.
A friend (thank you, J!) who introduced me to footprint charting and market profiling inspired me to play around with my Sierra chart - switched my 5 min to volume-based and played around with the numbers.
I like it!
About time...to FORGET TIME.
Will share more along the way.
Posting of PnL and trading logs to resume tomorrow.
13 comments:
Hi Jules,
That is a pretty chart, i wish my think or swim had volume charts...sticking with Tick charts / 60 min chart combo till then. It looks like my 3600 tick chart but is so much more clearer, with smaller risk.
Thanks,
NQJ
Cool, looking forward to seeing how the volume charts work out. I looked at them a while back but don't really know how to best utilize them. I'll get the vol chart tips/tricks from you once you've used them for a while :D
If you are gonna switch charts you might as well at least do the effort of trying the purest of them all - range bars or my personal favorite, tick charts on dual time frames (x & 3x for example)...and then trade only trend trades on the larger chart....you will be surprised...
I'm a fan of the tick charts myself, but the volume idea is intriguing.
yes indeed the hot trend is the range bar right now, the smallest range = .25r = 1 tick. Here is 2r (2 points) Renko chart.
http://www.sierrachart.com/userimages/upload_2/1247617521_28_UploadImage.png
Jules, look forward to seeing your pnl again. I love looking at those greens and reds.
Posting Pnl is a form of accountability and worked well for me. No one else in my real world knew the extent of my trading so, by posting the pnl i'm just holding myself accountable to the virtual friends in my blog.
I use to use volume for awhile. It's good for supply demand charting with volume involved, but it is also bad in that you can not see the direct effects of volume as it is hidden within the bars. I don't think your data feed is unfiltered also, that means when price didn't change, some trades (time and sales volume) are omitted to save network data bandwidth, thus making the volume charts not as accurate. I know zenfire uses unfiltered data.
I second the use of range bars instead (when price from high to low meets the tick size). But I prefer Renko instead (when price goes continues a direction by tick size, or when price reverse direction by 2x tick size). Both range and renko are very good when paired with a volume indicator. They filter out a lot of the small movement consolidation noise, thus making everything much better like fib retracements.
Ed is 100% correct about the unfiltered data and using volume charts. I've used volume charts in the past also and I know this was a discussion over at ET. Data feed is all important when using volume charts or else you're not getting an accurate picture.
Thank you, all, for taking the time to write :-) I'll check out range and renko bars.
Ed, DT: you're right, i don't think mine is unfiltered data. I'll find out. Meanwhile, I'll probably go back to 5min (a little noisy these days)or continue to monitor volume charts. In any case, market depth is still what I use to decide if I'll take a trade.
Ed, you're using zenfire still?
Sage :-)
I definitely love only GREENS LOL!
Yes, having to show my PnL does help to keep me on my toes, except that after consecutive up days, the pressure to maintain the record tends to start building up. When my state is right, a well rested night and balanced diet (usually it's just about not forgetting lunch..haha..) would be enough to dissipate any excessive pressure. When my state is wrong, NOTHING helps. So I guess I'll just have to learn to stay out when I'm sick, tired, moody, ANGRY, etc. Which means I'll probably have to go deeper into my cave...hmmm....
Jules,
A side by side comparison of your chart and my 40k Zenfire chart shows very similar candles. About the same differences as our 5m charts side by side.
:-) Thank you, DT!!!
Big HUG!!
Yes I'm still using the zenfire demo.
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