Bob Volman Price Action Scalping

BLS,

Sorry for a rather technical question, the vertical scale on my prorealtime chart adjusts to the price, meaning if the price range gets smaller the size of the candles increases and visa versa. Could you please describe how you changed these settings and also how you made 20 levels highlighted.

Thank you.

Right click on a chart and go to "chart settings". Set vertical scale density to low. Then click on the left side of the chart, the part with the prices, and drag up or down until you get the scale that you want.

Did you find a way to minimize the amount of with trend trades taken on false breakouts (in hindsight)? In this chart it looks like the level which was previously a resistance (1.2313) was successfully tested (though not to the tick) and the setup that followed (SB) didn't have any resistance on the way to the profit target.

[IMG][/IMG]

There wasn't much you could do about that false counter move. The closest stop beyond the tightest one was that low at 1.2313. You wouldn't consider giving the stop an extra pip or two because there is no corresponding low/high on the chart. I skipped this setup altogether because it was 10 minutes before the US GDP figures were to be release. That likely meant that many traders would wait for the numbers to come out before trading so you wouldn't get any follow through on the break anyway.

Thanks for your reply BLS. It seems the overall market dynamics, which sometimes depends on particular time of the day, is as important as determining the direction and entry points. Considering tight stops all the setups require pretty fast follow through, and I guess taking trades only in the most favorable conditions is one of the main difficulties.

E1 (+9.5 pip): Straightforward range break with a textbook squeeze. I closed my trade out early by 0.5 pip because my index finger was itchy. I think I'm developing a bad habit.

I broke a my rule for not trading while eating breakfast but I had to make an exception after seeing the overall pressure was favorable and seeing that textbook squeeze.

E2 (+10.1 pip): After my first trades, the bulls bought prices up all the way to the highs of (1). They did this without much buildup so that made it hard for them to keep prices above the 1.2300 level. The bulls tried to continue their trend but were slammed back at (1). The bulls tried to push prices up at lower levels but failed (2,3,4). The bulls managed to halt the slide in prices by forming a block ( I decided not to trade the break of it), which acted as a base of support. They used this base to bring prices back to the 00 level where they fought it out with the bears for control. This was a pretty textbook setup with the bears getting squeezed. There is some clustering to the left at (1) but giving the strength of the setup and how far that clustering is from my setup, I was not worried by it.

E1 (+0.5 pip): The chart starts off with some downward pressure after the bulls failed to break past the 90 level, followed by an attempt to retake the 80 (1). We get a hint of a possible range formation when the slide in price is halted by the bulls right above the 60 level. This is a typical range fight, right between two 20-levels, with a false break on each side (3 and 4). The pressure is slightly in favor of the bears but it's too early to take any trades. Things start to get interesting when the bears printed a lower high (5) and tested the 60. The subsequent bullish response (blue bar, 6) gave us a bottom to connect with the lows of (2) to draw a bottom barrier. It's rough but it'll work until price shows us otherwise. There's still some bullish hope left as the bulls make a higher high (7) that pierces the 20 EMA but the bears are ready and waiting to sell heavily until prices break the bottom barrier. We've got a some buildup and a nice squeeze and I take a short at the break of the barrier.

My entry slips by a pip or so and I don't get much follow through on the break. I begin to trail my stop aggressively because it appears that support around the 60 level maybe stronger than I have anticipated. I move my tipping point down the lower barrier of the range when prices tested the 60 level (8) and dropped to the 53 level. Prices start to go sideways and I figure that if prices can't move on then that will increase the odds that I will stopped out in a counter move so I trail my stop 3 pip lower. I got nervous and bailed out one pip early of newest stop. I need to work on trade management because this latest stop was too aggressive. I probably should've moved the tipping point to the 60 level, where prices tested it successfully and tried to move on (8).

E2: After a lengthy down move prices printed a reverse head and shoulders formation (1,2,3). This would give the bulls an excellent chance to reverse the down slide but the bears capped prices at the highs of (4) and slammed prices back down. The bulls look like that might be in for a squeeze as they fail to buy prices back up above the 40 level (6). The bulls didn't give in a used the double bottom (5, 7) as a base of support to fight back. Prices stall out at the highs of (8), allowing us to draw a barrier. That test of the 40 area (9) was a very welcome sign as it made it more likely for prices to move on up. Prices break out of the range barrier too quickly for me to trade but a ARB setup of the clustering variety formed right above the barrier.

Prices jumped up 3 pip so my entry ends up slipping by 1-2 pip (tried to enter on 53 but filled at 55). The trade was rather healthy for the most part but the bulls had trouble clearing the 60 area. I decided to bail 3 pip short of target after prices could not follow through on the break of a previous high. Had I gotten filled at my desired entry I probably would have made target. The trade eventually sours.


I'm sorry if my analysis doesn't seem to be as detailed as my other posts. I'm feeling a bit lazy today.