Hi David,
I like your trade room a lot, keep up the good work it is great to
hear how you help the more inexperienced traders. I have attached the footprint
charts I use from Market Delta, they are the perfect match
for the Ambush trading method. My two main directional tools
are based on Market Profiles and the Pitchfork, just as a trick, when you
turn the long term profiles to the side that they look like a mountain...focus
on the peaks and tales, that is where is action is.
Chart1: Market Profiles with VA + POC+ Volume distribution, 20D,
10D, 5D an actual day split by time, I use an excel chart for the 30min range
bars (H-L) (120 days average), 10 day ATR, so on average the move at 701 to
730am is 7.25 points…at 7am today we are at 880.5 add the 7.25…
target max 887.75 ..we hit 888 at 7:17am. Two other examples, J period 890.5
plus 6.2 = 896.70, we made 895…M period 894.25 minus 8.47 = 885.75, we
made 888.5….I use it for guidance how far it should go
Chart2: Institutional Investors, 2000tick top screen all trades,
below only trades >199 contracts and with a Delta between bid / ask of 600,
bottom is the momentum based on Bid/Ask Delta (blue up, red down) Look at
the 896 level from today….You can spot with that method when the big guys
are not participating or they are moving the market....look at chart 2a, today
in the morning....no one there..look at the 5 day volume sell battle zone from
those guys are at 882 (long red bar volume profile to the right) rides on the
standard deviation SD1 band! Low volume & TPO’s below rejected and up
we go!!!
Chart3: My day to day chart, I use VWAP (volume weighted standard deviation
bands) 0 neutral (red), SD 1 (68% price range blue), SD 2 (95.7% price range
green), SD 3 (99.8% price range orange), again look at the tops and bottoms and
the actual bid / ask action (delta blue up/red down)
Chart4: Orange PTfk, around 2am median line broke down to lower channel, look
at the pink PTfk all action was clear at 2am down move to the median line,
based on orange it will hit the outer channel, pink zoomed down to its lower
channel, at the low red PTfk was developed, its move had to be the median
line (80%) rule, in case it will miss, next move is down to the lower
channel...remember 896 !...I will watch very close 884 those intersections are
jump boards..
I love those charts, but my main directional day tool is the pitch
fork..from my point of view the only leading indicator besides fib ret / ext.
80% of the time the median line is hit, either price zooms through or
retraces and touches the opposite outer channels again to close to 80 %.
It blows me away ..it is like a magnet ! Had a couple of good ones
today...you should map that with the Ambush trades...unbelievable when you
see it. By the way I liked your comment about TTM today, I really liked
them in the early days when they started the service, but right now it is too
commercial... buy that or these etc..stayed with them for close to three
years. I learned a ton from Donald Jones about market auctions and
profiles..www.cisco-futures.com, old school and a really good guy.
See you tomorrow morning
Greeting from the Monterey Bay
Thomas