Bob Volman Price Action Scalping

This is a discussion on Bob Volman Price Action Scalping within the Forex forums, part of the Trading Choices category; Originally Posted by Giorrgi Guys I'm having some trouble understanding the intricacies of the ARB setup, they mostly have to ...

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Old Oct 7, 2012, 4:21pm   #745
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Guys I'm having some trouble understanding the intricacies of the ARB setup, they mostly have to do with identifying the entry bar.

1. So the first situation ARB is traded is when the barrier level isn't very clear like in an RB but instead looks like a mini block break formation. If I got this right, in this situation, the entry bar is the same as it would be in a block break: basically a breakout bar, am I correct? Are there any other varieties of a signal line for this ARB situation?
There is a question of where the barrier level is -- different traders might put it at different levels. So on the break, there is not unanimous agreement that a break occurred. So price pauses while traders decide if that is a valid break and forms its own little barrier line -- its signal line. It does look like a mini-block. I wouldn't call it a breakout bar (my terminology might be different than yours) but just a break of the signal line.

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2. The second situation a sudden breakout (without the pre-breakout tension) which then pullsback to the barrier range OR (more frequently?) to the last arch ceiling. Here, if I got this right, the entry bar is simply a bar that reverses from the pullback motion and goes back towards the breakout motion (if the breakout was short, the entry point would be when the previous low of the bar was broken to the downside). Am I correct? Any other signal bars in this variation?
You are correct. That is the signal bar.

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3. Also, page 220 Bob talks about an elongated doji line bar (11 in the 13.3 figure) which he says is a "stalling bar". I'm not quite sure what he means by "stalling bar". Can anybody explain?
A stalling bar means price paused/stalled/reversed. Any doji could be considered a stall because its very small body means neither bull or bear won the fight -- it "stalled" in indecision of whether to be a bull or bear bar.

The bar in question (bar 11) first went up quite a bit from its open then reversed and closed at its low. So the up move "stalled" and left a big tail on top.

Another type that he describes somewhere is when you have a strong bear bar that gets reversed on the next bar with a good bull bar (or vice versa). So price looked like it was going to have more down with a solid bear close then reversed and went back up (frequently to the open of the bear bar. So the down move stalls. Volman's trick here is to combine the two bars. Then you see that you have a single bar with a long tail and possibly a doji or at least a small body.

Ask more questions if my explanations are muddy.
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Old Oct 7, 2012, 5:36pm   #746
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shotgun77 - thanks a lot man, everything's crystal clear now.
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Old Oct 7, 2012, 8:12pm   #747
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Several have mentioned Al Brooks. He will be releasing a video course soon. Here is one big difference I see between Brooks traders and Volman traders. Both are watching the same charts all day. Traders here at the forum sometimes see the exact same trade. Some may take and others may pass. That tells me that Volman's method is understood of what makes a good setup and what does not. Sure you miss a lot of what Volman sees but that is to be expected when learning as a student can't expect to see as much as the teacher.

In contrast, on Brooks forum, you never see the discussion talking about the same setup, whether taking or passing it. Now in theory hundreds of Brooks traders are all looking at the same 5 minute ES chart. So it makes me wonder why are they not seeing the same thing? Several have their own journals and post their trades. But never do the traders see the same trade and discuss as an opportunity to trade or pass. In hindsight at end of day, there may be some discussion if a direct question is asked on a particular opportunity. And that discussion may have some overlap in shared analysis. I don't discredit Brooks at all -- he is a great trader. But I do wonder why others can't learn his method and "trade alike" like they can with Volman.

Brooks and Volman will both tell you that you don't have to use their method to make money. What counts is to learn "something" that has a proven edge (based on your studies/backtesting/studying/use) and really, really, really study it. When you have completely mastered "it", you make money.

I have recently "narrowed" down the conditions when I take Volman's setups. I think I can master them easier/faster by taking them only in the conditions that are easiest to see on the chart without fooling myself -- seeing what I want to see so I can trade. The "narrowest" conditions is the ARB. The "broadest" conditions is the BB. I think this narrowed focus will help me concentrate on doing more of what I do well.

But it is hard to see a setup go to profit and you didn't allow yourself to take it because it wasn't on your list. Something I have to fight psychologically.
Thanks for your input shotgun77. I searched some other forums and have yet to find anybody who claims s/he is profitable using Brooks method on forex with success. On the other hand I did find quite a few who claims Volman's book helped them a lot with non-forex trading. Not that I'm skeptical about Brooks, it's just that his books are difficult to read and require a lot of time from me, I guess I'll just put them aside until I have a really good understanding at Volman's book.
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Old Oct 8, 2012, 12:48am   #748
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This is my trading strategy. There are many like it, but this one is mine.

My trading strategy is my best friend. It is my life. I must master it as I must master my life.

My trading strategy, without me, is useless. Without my trading strategy, I am useless. I must fire my orders true. I must trade better than my enemy who is trying to kill me. I must run his stop before he runs mine I will...

My trading strategy and myself know that what counts in this business is not the number of trades we make, the amount of pips of each run, nor the charting software we use. We know that it is the probability that counts. We will trade the probabilities...

My trading strategy is human, even as I, because it is my life. Thus, I will learn it as a brother. I will learn its weaknesses, its expectancy, its parts, its variations, its drawdowns. I will ever guard it against the ravages of the market and damage from my emotions as I will ever guard my legs, my arms, my eyes and my heart against damage. I will keep my trading strategy ready. We will become part of each other. We will...

Before God, I swear this creed. My trading strategy and myself are the defenders of my account. We are the masters of our enemy. We
are the partners in the trading business.

So be it, until victory is America's and there is no enemy, but peace!
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Old Oct 8, 2012, 2:26am   #749
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good morning,

stumbled across your thread here, I have recently started trading Bob's method
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Old Oct 8, 2012, 4:23am   #750
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guys,

Is a platform that displays price evolution in pipettes a no-no? why would that be?
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Old Oct 8, 2012, 5:49am   #751
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guys,

Is a platform that displays price evolution in pipettes a no-no? why would that be?
Because your chart will be all jagged and you'll have a hard time identifying proper signal lines to trade from. Just try and see. Full pips are definitely better
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Why not relieve ourselves from the fruitless task of prediction and let probability do the thinking.
- Bob Volman
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Old Oct 8, 2012, 12:48pm   #752
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Thus, I will learn it as a brother. I will learn its weaknesses, its expectancy, its parts, its variations, its drawdowns. I will ever guard it against the ravages of the market and damage from my emotions as I will ever guard my legs, my arms, my eyes and my heart against damage.
Interesting way of looking at it. But very true that you must know its weaknesses and all its parts.

I would look at it as a living organism that grows according to my ability to grow with it. To visualize, go from single cell organism to complex organism. So maybe you have a gestalt period for each stage of development.

I realized today that I'm not quite thinking like a scalper because I'm reluctant to do the tipping pt mgm. I'm used to keeping swing stops and I need to realize/accept sooner when a scalp trade is over (though the swing trade might still be in progress). Going through Volman's charts shows me he is quick to accept when price shows the scalp opportunity is over and time to exit.
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