Monday, 18 January 2010

Day After the Day Before

This is the first of a series of posts answering questions coming out of the webinar. You can find a link to the recording of the webinar at the right hand side of the blog.

Gathering Statistics
The program I am using to data mine my trading stats is MSA by adaptrade which you can find here. They have some good videos you can watch to see what it can do for you.

Splitting Profiles
Next, a quick "how to" on splitting the profile when there is more than 1 distribution.

 If there are 2 distributions such as the one above, separated by one or more single prints, it's quite easy. See Jan.13, there's 2 distributions separated by a single print. I split the profile there into 2 distributions.

You can see how useful it was the next day.

Now if there are 2 distributions but they are almost on top of each other so you only see 2 bumps such as the profile below, for Dec.17,
I first toggle the profile so all the individual TPO letters are separated,

I then look for the longest or very long TPO line that breaks out from the previous distribution and split the profile there and I get

When I untoggle the remainder I get 2 separate profiles each with its own POC, VAL, and VAH

There are profiles when you do this more than once, depending upon the number of distributions you can find.

Using the CCIs
I use the 2 CCIs to show me whether there is momentum and if so, in which direction. A few of you mention Woodie who used it in a way that didn't work for anyone I knew. He did, however, popularise a useful indicator and you can get some ideas from him.

I use it by looking at the short term and long term CCI, looking for trends and looking for change.

I don't use the so-called Floor Traders Pivots - S1, S2, R1, R2. I know they work sometimes. You can use them if you don't have anything else such as MP and validate them by order flow and momentum. I don't.


  1. Nice post. Do you think the developing day's profile gets more important than yesterday's at some point durng the day? Any advice on how not to get chopped to pieces on a low volatility day like today?



  2. Mpe DVAL and DVAH are important after the first 90 minutes or so if you have range extension and then trade in the direction of the extension. Yesterday was a real dead day but I didn't see any chop. The range bars took care of that for me. I had 1 long ES trade @ 1133.00 at about 09:05 London time.