Recent content by steven46

Attached below we show a chart that illustrates one of the basic principles of statistics as regards distribution of data (prices). We see price moving (both trend and trading range) until we get to the edge of the distribution, and then, a move back toward the central VWAP as institutions take...

Following up on the previous post, we attach the same template with 30 minute candles in place One of the primary skills we teach is how to "Mark up" each day's chart, so that the trader can determine 1) whether the market is trending or in a trading range and 2) where we are in the...

Today, as we prepare for another class, we show the Basic Template that we teach our students to use CONTEXT One of the basic concepts of our approach to trading is to provide Basic or "Key" References These can vary depending on the market, however one thing that does NOT vary is the VWAP...

Final Chart for this very productive Friday session We show both the 15min and 5 min charts side by side This really helps traders who are struggling to identify opportunity At the start of the Euro/USA Overlap, we see price create an hour long trading range condition. At the end of the...

A very easy and profitable open opportunity today If a trader took the time to properly prepare, this was an obvious short, after the opening test of the 20 period Ema (on the daily chart to the extreme right) The general rule of thumb is that the institutions make decisions based on the...

This evening I will talk about tools that professionals use regularly to obtain an edge as they operate in the markets 1) Economic Calendars......Most professionals integrate knowledge of high impact economic data into their trading plans. The largest institutions provide comprehensive data to...

Because this session was an excellent example of "Trading Range" behavior, I want to outline the basic approach that I use. 1) Trading range behavior is common, at the open and on days when the market is anticipating high impact economic data. This often occurs early in the week (and month)...

Hello FranziskaSchulz Thank you for your encouraging and kind comment My hope is to get traders to think and to learn concepts that might be helpful This (trading) is a very competitive world, dominated by a small group of big institutions. Most of what they do, is directed by software...

And by coincidence, we see that the skew (which of course is dynamic) changes to symmetrical, as buyers enter the market. We see a series of strong bull bars This type of reversal has good odds of success and although we did not take the trade, the entry would have been above the 20 EMA (White...

And here is the "reversion to the mean" example that I was talking about in the previous post. On the left side, the longer time frame chart shows the statistical skew (which was negative) On the open we saw a wide range bar up to test the 2nd SD. Aligned with skew we saw sellers come in to...

Generally speaking, the institutions that produce the biggest volumes work on a different premise than you might think. They use trading range days to accumulate or distribute volume so that when high impact economic reports are released, they can either buy back (at wholesale value) or sell...

A quick note to inform that I have started a Facebook page (Beyond Price Action) and will stage an event soon For a period of two (2) days I will host a trading room live interested traders can watch me as I go through the pre- market chart markup and comment, and then trade

And with that, I believe that I have completed the obligation that I accepted to pay forward the gift that my mentor provided me years back. I wish you all the best of luck

Here is example 2 As you can see, it is the same chart with FRVP (fixed range volume profile). We use this tool to obtain the statistical skew for a specific range or prices. The red line is the POC. and its position relative to the VWAP is the "skew". Absent a background in basic statistics...

I will be transitioning to Instagram shortly but before I do, I want to offer these last examples showing how I frame each session There will be two (2) charts, the first will show the use of VWAP. While posting here I learned that readers do not want to get into the math so I will not present...