Sunday, 31 January 2010

Andy's Question - First "Would EL Take this Trade"

This was the first submitter of a chart so I thought I'd answer it today to start Kiki's idea off so you know what to expect.

Andy asked: " The first trade I took was a pull back to the top of the VAH and the MA. The risk I saw live was we 1 ticked the IB and trend was a little long in the tooth. Waiting for a second entry would have saved me a stop but I still think it was a good trade... am I wrong ... did I miss something? The second trade was perfect........
Here is the chart. It looks like Ninjatrader. I don't know which datafeed Andy uses.
Trade 1 was not a trade I would even consider. The only plus is that its near the 33EMA. Otherwise, the order flow had turned to selling - VB had a row of reds and the CVD had peaked and turned down. Additionally, the momentum had turned down on both the 45 and 6 CCI. The bar where Andy marked as a stop was a good entry for the short. When price was near the VAH, the idea was to evaluate what was going on there. The VAH line is only a line on a chart and is an alert to pay attention. 

I want as much as possible in my favour for getting to my first scale. Compare your first trade with the second which was indeed perfect, using the above criteria.

It all comes in time if you focus on processing what you see is happening.


  1. Thanks EL... the data feed is Zenfire.

  2. Hello Boss,

    I know you have a drop dead stop and it rarely gets there before you become aware that the
    market is doing something else. What would you say your average point loss on a trade is?
    I know it depends on the specific trade and contents, but what would you say the average
    over the last 100 trades was?

    Andy thanks for sharing. May I ask on your CV what period it is set for? It does not appear to
    be a 9 period.

    Mike have you noticed on TS that the CV number is off? Just to clarify it is a 9
    period average correct? (Average of last 9 bars).



  3. Andy: thanks for submitting the chart. EL's review is very helpful.

    Looks like your MomDot is shifted to the right by an extra bar???

  4. Rino, It's about 5 ticks. I don't exit because price goes against me but because I should have paid more attention to something in the picture that I discounted that had a greater effect than I anticipated. But sometimes it's just the usual: a large order or series of orders comes in and turns the market. I always remember that one big order, hedge or basket can make me wrong.

  5. Rino , I am using a straight CV with no average.

  6. Joe B and others, Andy's Ninjatrader templates have been uploaded. See KEY POSTS Chart Settings & Chart Defenitions

  7. Rino,

    Yes, the indicator is set to average by 9 when you download it from EL but you can adjust it to anything that you want. Just select the indicator and go to the format screen and you can adjust it anything you want.

    My guess on why things look different from platform to platform is because everyone's cumulative volume will depend on how far they are looking back. I always set my chart to look back 21 days so my cumulative volume will add up all those up and down volume bars for 21 days and then average that by 9 periods. If your chart is set for something different then the numbers will be different.

    My take on it is that it really doesn't matter what the specific number just need to see how volume is changing. Is it trending up, down, sideways, etc. Hope this helps!

    Mike L.