Saturday, December 10, 2011

Liquid Sequences & Trading Notes<<>>After 90 Minute Grind

AA Liquid Support & Resistance Bounces
Wholesale Price Reversal Bounces. (MATD, Globex Gap Cycle S/R, Round Numbers) On Liquid sequences we are taking advantage of WHOLESALE PRICE POINTS that are PRE-DEFINED!! they could be Round Numbers, Prior Day S/R from a Trend or Range, or Globex S/R or Gaps that are tested. These Sequences ARE NOT ENTERED WITH BAR BREAK CONFIRMATION, but rather $Tick, Block & 3Line Break Turns at or near the pre-defined wholesale S/R points. I use 1 lot to PROBE 1st. Bar Breaks are added confirmation and may be used to add-on to the current position. The Position is managed with Size within a predefined Range or Premise. The Best Times can be 2nd Time Interval of 90 Grind or Pre 9zone  9:00 - 11:00am.
At least 5 of the Defined Criteria Must be met prior to entry .
  • Defined Premise (A MUST)- Prior to entering we must have a basic premise of Strength or Weakness, We want to ask where is the most CURRENT wave of S/W likely to push prices. ie where is momentum headed. If the paramaters of the premise are Broken, then look to scale out of any positions and reassess the next wave of S/W.
  • Pre-Defined S/R (A MUST) - WHOLESALE Price points must be defined and Marked on the chart prior to price testing this area. Look For Accumulation/Distribution signs with block bars and Exhuastion. Globex highs/Lows and previous days Lows/highs.
  • Limit Orders Above/Below Market (A MUST) - Once we have a define price range We then Place LIMIT orders at or near those markers. If Not filled allow for only a few ticks to chase or let it go. This is where we use the $Tick to time the chase.
  • Block Volume & Probars (A MUST) - We want to see Block Volume or Probars at or near these levels to confirm corroborating action from Professions.
  • $Tick Turning at Extremes and Bouncing (A MUST) - To time our entry we want to see the $Tick reach key points, either at extremes +/- 1000 reading or Reacting to the 0 Line.
  • Confirmation - I use the 3Line Break and Pro or Block Bar Breaks for confirmation that my entry is progressing with my premise. These are good add-on points. 
Managing Liquid Sequences  - These sequences should remain within the Defined Premise,  If we entered correctly at the Premise Extreme WholeSale level then our STOPS should be very clear, usually between 2 ticks and Max 2pts. We settle for 1-2pts profits but may extend if added confirmation is present. Good Exit Points are BB Mid Line or $Tick 0 line.
Key Points to Remember - Start with 1 lot and When price is confirming get bigger, when price is not confirming stay small or get smaller if holding.



Liquid Trading - High Probability Sequences based on wholesale price levels usually defined by Support or Resistance. Liquid being short for liquidity. These trades provide liquidity to the market requiring adaptation and fluidity as is the characteristics of water. 


Liquidity provider is defined as: Liquidity Providers guarantee transactions at the best price and boost the volume of transactions in the book. The Best prices are at extreme wholesale Hi/Lo's typically in the wrong direction for the opposing trader. Hence the best price for inventory with "little to No Demand"


Don't Use Set Stops on the prior swing lows/hi's!! Its ok to set stops after the turn (low, lower low, higher low= head shoulders type movement)


Coils are the old 2+ bar triangles that setup, look to add if this shows up in my direction, they are rare in the midday fade and on Tail days.


Midday Fades after 7zone have been good thus far. Don Considers this a good time for liquid trading.


Take 2pts in slower midday moves that have tighter ranges.


Air would be an observation of how far price has moved in extreme from say BB mid line or $Tick 0 Line. Use higher time frames 5 minute and 4500 ticks to determine air- ultimately this is the room price has to travel FROM an Extreme.


Probe trades have NO confirmation, just simply getting a feel for the rhythm.
Confirmation would be a Block Bar Break, 3 Line break, $Tick 0 line break, BB Mid Line break, coil or test in a rising market etc, at which point i may add a contact.


Trading Tails- keep orders below/above market at areas where price may Spike in case we get a Great wholesale opportunity, there is often NO confirmation.


Note the rhythm of the globex session, are tails being printed often?
If entered too early, UNDERSTAND that market Always Correct. Don't be too quick to panic and barf out.
Good to exit at 4500 BB mid line.


Never manage a trade based on average price when adding lots.


**Random thought**Fade Gaps on the higher time frame Resistance or New low Support, look for New Highs in globex to retested. See Ice Fades

Thursday, December 8, 2011

ES Contract Rollover Source Reminder

This reference applies to most futures traded on the Chicago Mercantile Exchange and the Chicago Board of Trade.
  • Rollover is 8 days before contract expiration.
  • Rollover is usually on the second Thursday of every month. However, if the first day of the month is a Friday, the rollover day will be the first Thursday of the month.
  • Expiration day is the 3rd Friday of the following months: March, June, September, and December.
The contracy symbol associated with the expiration months are: 
  • March - H = ESH(year) 
  • June - M = ESM(year)
  • September - U = ESU(Year) 
  • December - Z = ESZ(Year)
For example, the emini S&P symbol is the ES. So the symbol the emini S&P December contract would be ESZ12. (12 being the year) Liquidity of the contract will shift on the rollover date. Make sure you trade the correct contract. You should be able to notice by the lack of liquidity in your underlying instrument as well as the Price difference from the Matrix and the @ES continuous charts.

For 2012
March - Current ESH12
June -  ESM12
September - ESU12
December - ESZ13

Wednesday, December 7, 2011

90 Grind Time Intervals

This video is a summery of how i manage the trading day, Ideally I'de like to be done prior to the 3rd time interval. If Not can at least establish a bias for till the next set of time intervals such as the 9zone.  Enjoy!!


For more on Time Intervals click below
90 Minute Grind, Limiting Market Exposure

Tuesday, November 22, 2011

The Power of Block Volume on High Time Frames & Vpoc's

This Video is a good example of how Block Volume Shows up around Key Levels of Support and Resistance on the higher Times Frames.  Enjoy!!


Click The Links Below To See More Information About Block Volume
How I use Hidden Volume To Spot the Insiders
Block Trades on The Ticks

Friday, November 18, 2011

How I Use Volume Profile To Spot Hidden Support & Resistance

This Video Covers How I use The Volume Profile in my Trading. Hope its helpful..

Corrections and Details Covered in the Video
Symbols: ES.D and ES Continuos contract. I use the @ES continuous contract to get Globex Data and the ES.D to get basic Daily Profile information. I use the Matrix Profile to see intraday tape volume at specific areas within the days range, it provides a slightly closes look at Volume as it occurs intraday. This is useful to me for entering and exiting trades near the high and low volume area on the lowest scale.

VPOC- Highest Transaction Volume Area for the session.
Value Area - Range where most of the high volume took place.
Virgin POC - Untested VPOC areas from previous days the have NOT been tested
Highs and Lows - I use the solid line to display the Highs and Lows of the session

Thursday, November 17, 2011

AAA 13 Open Ice Trade

This is an example of how I trade the 13,500 tick openning bar break. The Idea is to take advantage of the Globex and pre-Open Momentum. See Ranked sequences for better trade selection to learn about my other setups.

13 Open Ice Video and How NOT to blow it

AAA Break Out Sequences
Open Ice Breaker 13,500 Tick - (The Ice Trades are based on Momentum, Volume and Cycle Activity from Globex and Pre-Open.) The open ice Breakers is designed to take advantage of the previous days close and After Market and Pre-Open MOMENTUM. Using the 13,500 tick helps to eliminate NOISE and give clear break signals.
ENTRY SEQUENCE 13,500 tick for entry and 1500 for continuation clues ONLY.
  • Use the Market Bias to get a general direction of trend and Strength/Weakness.
  • Review Globex activity for changes and confirmation by noting Cycle S/R, Blocks at highs and lows and True Rambos at highs and lows to confirm direction.
  • Look for the 13,500 Opening bar to print, 
  • 2nd Bar Break in the direction of Pre-Open Momentum. **Tip** Allow the price to touch your break price, but wait!! many times price will retreat a few tick before returning with momentum. Use a Limit Order at Break Price for cheaper entry.

Wednesday, November 16, 2011

How I Use Hidden Volume & Rule 526 to Spot the insiders

This video covers the use of Hidden Volume Using My Block Volume Indicator. Over the past 9 months i have devoted ample time in the study and application of block Trade Size information. This Video is the result of that research. To learn more about block volume please click the link below Block Trades on the Tick Chart or Google "Dark Pools". ENJOY!!

Using Block Volume Indicator to Shine Light on the Dark Pools


Click here---> Block Trades on the Tick Chart
I have sense developed a Block Trade Paint Bar that will average out on any time frame eliminating the need for the lower histogram, guessing what inputs to consider relevant on any given day and providing immediate visual cues as noted in the above video. Of the many advantages to using the Block Volume Indicator is the fact that we can now see covert volume size in places that would have normally displayed Low volume of normal volume. This is huge and has been a great addition to my trading.
  1. Displays otherwise hidden activity amongst the insiders
  2. Great on Both Time and Tick Charts
  3. Great for ANY time frame but most powerful in the higher Time Frames
  4. Great For spotting reactions at peaks highs, Spike lows and efforts to cross the creek or fall thru the ice.
  5. Provides Excellent Visibility.
Video Clarification: Regarding the setting. The minimal number of blocks size to be counted is 50.
The average will only take into account an Average Trade Size of 100 + before printing. So, the longer the time frame the more block transactions above 50 will be needed per bar to meet the average requirement of 100 blocks. Hence the higher the time frame the more relevant the Block Volume Signal. Also Note that regardless of the time frame selected, the block volume is recalculated and displayed based on a per bar realtime basis which makes it even more reliable as well as powerful. Typical Block trade size can range from 5000 contracts up to 50,000. However Specialist and Insider wont Buy/Sell at one price, they tend to scale in and out positions covering prices in ranges. ie. 1258-1262.