Bob Volman Price Action Scalping

[stehlikpetrmsncom]

View attachment 143808

IRB shortly after open this morning.

That 2nd arrow is pointing to an invalid DD, but I had a question about it. It's not really valid because the DDs before the break are not more compressed than the pullback. But if they were... would anyone have traded that? Or does that lower top look too sketchy?

I did not trade that last box. Was preparing to, but I missed the break. However, the pressure doesn't really look like it's on the barrier of the box, it's kind of in the middle and price doesn't look like it's under as much pressure as it does in some boxes where it bounces between the 2 sides of the barrier. I don't know that it makes it invalid though. At least it wouldn't have prevented me from trading it had it not broken so fast. I was waiting for a 2nd chance to get in, but price got slammed instantly like 4 pips back after the breakout. I thought that was a pretty negative sign. Any thoughts on the validity of this BB?

Hi, I think the box is looking really good and I'd gladly take it over and over again, although I lost pips on it today. You have the fake break below, the higher low, the squeeze, the trend. Sure, the barrier seems to be 2 pips wide, but it's still clearly there.

 

[samich1262]

Hi, I think the box is looking really good and I'd gladly take it over and over again, although I lost pips on it today. You have the fake break below, the higher low, the squeeze, the trend. Sure, the barrier seems to be 2 pips wide, but it's still clearly there.

Yeah, I guess I should've tried to get in on that. Saw a nice RB later that worked out, so 2 for 3 is a good day had I taken all of those.

I think I should avoid anything during a Bernanke speech like right now, the market is indecipherable. It just mowed through a bunch of resistance and then dropped all thew ay back down.

 

[johnwolf]

I would not have taken the second BB. Mainly because it's back in the tight range of box to the left of it, and that breakout failed to reach target. To me this qualifies as what Volman calls "unfavorable conditions." It also has the look of a head and shoulders top, so I'd wait for more information.

John

View attachment 143808

IRB shortly after open this morning.

That 2nd arrow is pointing to an invalid DD, but I had a question about it. It's not really valid because the DDs before the break are not more compressed than the pullback. But if they were... would anyone have traded that? Or does that lower top look too sketchy?

I did not trade that last box. Was preparing to, but I missed the break. However, the pressure doesn't really look like it's on the barrier of the box, it's kind of in the middle and price doesn't look like it's under as much pressure as it does in some boxes where it bounces between the 2 sides of the barrier. I don't know that it makes it invalid though. At least it wouldn't have prevented me from trading it had it not broken so fast. I was waiting for a 2nd chance to get in, but price got slammed instantly like 4 pips back after the breakout. I thought that was a pretty negative sign. Any thoughts on the validity of this BB?

 

[samich1262]

I would not have taken the second BB. Mainly because it's back in the tight range of box to the left of it, and that breakout failed to reach target. To me this qualifies as what Volman calls "unfavorable conditions." It also has the look of a head and shoulders top, so I'd wait for more information.

John

Hmm good point, John. This one is tough to decide on, I think its probably still valid but more aggressive, and I'd like to stay as conservative as possible for now. I checked figure 10.3 in the book, there are some similarities and some subtle differences. 10.3 is a retest of a 0 level and the bearish move prior to the breakout box is less aggressive than the one on this chart. He notes that the 2nd box in 10.3 is valid but less favorable. Personally, I think the failed break from the first box in 10.3 would've scared me off because it almost looks like a countertrend BB. I don't like to buy against a countertrend setup going the other way.

 

[samich1262]

IRB from today. I skipped it because everything after 10 EST was pretty erratic, but overall conditions looked favorable.

This might look messy, but it comes after 5 lower tops and has serious resistance directly above and to the left. That was actually a BB that broke to the upside and failed. That should have discouraged the bulls. I saw the BB but did not feel as sure about it, pressure looked somewhat even to me at that point. We only had one higher low before the BB, and we had like 5 lower tops that looked to be trouble. But after that BB failed, resistance became support, a new bearish BB formed, and we saw the bears emerging as the winner here.

I am starting to feel more confident about my IRB reads after this week. Hoping next week I can finally feel comfortable enough to trade them.

 

[stehlikpetrmsncom]

Hi, today was a great day, the market was finally moving I made few pips even though I missed a valid trade and entered invalid one.


1st picture:

1/ BB - Quite straightforward, I think.

2/ BB - It is after double top, but also after many higher lows and nicely being pushed by EMA.

3/ DD - I like the compression of the dojis here, it also roughly tested previous high and retraced about 50%. Sure, it is below EMA, but otherwise it is a very nice setup.

2nd picture:

4/ RB - I didn't trade this, because I was scared. Stupid mistake.

5/ BB - Trend is still up and this is a very solid block - just about 5 pip high, 17 candles in there (tension), fake break to the downside, higher low, 7 touches of the barrier.

My question today is, would you trade the BB in picture 2, the middle box without an arrow? I was prepared to, but the low scared me off - should it? Does it matter since it was immediately bought? What do you think about that setup?

 

[samich1262]

My question today is, would you trade the BB in picture 2, the middle box without an arrow? I was prepared to, but the low scared me off - should it? Does it matter since it was immediately bought? What do you think about that setup?

I almost took that BB too, check mine and John's posts above. I thought it was valid but aggressive. It's similar to 10.3 in the book, but this one has more bearish action right before the box forms than the one in the example. Sometimes I wait for price to break that up first. I skipped it but not on purpose, lol. I missed the breakout so I waited for a 2nd chance, and it got slammed back like 4 pip. I didn't like that, so I didn't take it. But, there was no real glaring sign that I could see that said it was invalid. John passed it up.

 

[stehlikpetrmsncom]

I almost took that BB too, check mine and John's posts above. I thought it was valid but aggressive. It's similar to 10.3 in the book, but this one has more bearish action right before the box forms than the one in the example. Sometimes I wait for price to break that up first. I skipped it but not on purpose, lol. I missed the breakout so I waited for a 2nd chance, and it got slammed back like 4 pip. I didn't like that, so I didn't take it. But, there was no real glaring sign that I could see that said it was invalid. John passed it up.

My mistake, sorry. I meant the box in my 1st picture, what do you think about that setup?

 

[samich1262]

Oh. In the 1st picture, the 2nd box is probably good, bullish pressure is probably up but it looks more even than in the first picture. The 3rd box, the one with the green arrow looks good. It's tiny but the way the dojis close show pressure winding up like a spring. I think I would take that one. Somehow I overlooked it when it happened today.

 

[jimmyho]

I really interested with the book but I cannot find it sold in my country
can anybody kindly; summarize the entry setup of bob volman method with some picture
I heard it; bob volman method has 7 kind of entry setup
Thank's

 

[MrBrunotte]

I did a bit more researching myself and on page 181, Fig. 12.2 we see an IRB that had similar theme to my trade. This one went right through the range, but I am not 100% sure that if we take the moement of the break to the bottom that we'd get 10 pips exactly. I looked at a few more charts and it so seemed there too. But then again, its hard to tell from printouts exactly.

I think that if I take a setup like this in the future I should take it but just take profit at the support line. That would have been a solid setup and you can't always expect the market to give you a 10 pip run (esp. this past month with the Vix sitting at multi-year lows)

Hello Tony,
I took a look at the chart on page 181 (12,2) and I dont think it is a good rule to just exit at the support line. In this chart the bear bars all had closes on their lows and showed good strenght so one would probably expect a small pullback, as occured, and then a continuation of the bear trend at least down to the 60-level in this chart.. The signal line is so close to the round nr so in my mind it is a high probability that the vaccum effect will pull it down to that nr (as it did with the bear bar). I belive it is better to look at the context and not have a set rule for exiting at the break line etc.
I have also missed a couple of trades when I had my 10-tick target locked, my trades were up nine ticks (I trade 6E futures) and then they turned on me and I got out with a loss..
In a email that I got from Bob he said that he gets out whenever he feels that it is good, so I think he uses the 10-tick target as an initial target and if things turn bad he just exits (as he said in the email)

 

[fwloop]

I really interested with the book but I cannot find it sold in my country
can anybody kindly; summarize the entry setup of bob volman method with some picture
I heard it; bob volman method has 7 kind of entry setup
Thank's

Amazon.com will usually ship to international customers - Also there is a site here that has some excerpts from the book that you can review.

Forex Price Action Scalping

 

[MrBrunotte]

Hi everybody,
My name is Stefan and Im new to the forum, and I really like your posts! They are of great help and it is very educational to read your thoughts and look at your trades.. I will be posting my trades and hopefully get some feedback on them..
I trade futures (6E) but it is very similar to your FOREX charts, and the setup rules work just as fine..
Good luck everybody today with your trades!!

 

[MrBrunotte]

My first trade today (- 6 ticks)

Not a good start today!
I sold the market as a RB...
I sold at 1,2568 and used a limit sell order one tick below the resistance and an initial stop 1 tick above recent high.
To me the setup looked ok, it was a good squeeze setup and the bears had been trying to push the market down with a lower low smaller micro double top at 10:24, but the market is in the low of the trading range which always is a bit scary.

Maybe I should have been more concerned with the resistance back at 8:39?
I would very much like your comments on my analysis, how do you guys see the market at this point?

I post this trade right after I have been stopped out and I will repost a snapshot in a couple of minutes so that we can see what happened..

 

[MrBrunotte]

My first trade today (- 6 ticks)

Not a good start today!
I sold the market as a RB...
I sold at 1,2568 and used a limit sell order one tick below the resistance and an initial stop 1 tick above recent high (1,2574).
To me the setup looked ok, it was a good squeeze setup and the bears had been trying to push the market down with a lower low smaller micro double top at 10:24, but the market is in the low of the trading range which always is a bit scary.

Maybe I should have been more concerned with the resistance back at 8:39?
I would very much like your comments on my analysis, how do you guys see the market at this point?

I post this trade right after I have been stopped out and I will repost a snapshot in a couple of minutes so that we can see what happened..

I was wrong and would have been stopped out anyway!
I guess that I was trying to trade an IRB that could have worked but the support down at 1,2565 was to strong..I can see that I should have waited and not moved up my support from this level since it still had significance..
Maybe I should have looked at the dip below 1,2569 as a F tease since it went straight down from the top of the block? What do you think?

 

[Danoteles]

Hi all,

Thank you for this thread. As a complete beginner I've found it very helpful.

 

[stehlikpetrmsncom]

I was wrong and would have been stopped out anyway!
I guess that I was trying to trade an IRB that could have worked but the support down at 1,2565 was to strong..I can see that I should have waited and not moved up my support from this level since it still had significance..
Maybe I should have looked at the dip below 1,2569 as a F tease since it went straight down from the top of the block? What do you think?

I think it's unsafe to trade while there is bank holiday in US Forex Calendar @ Forex Factory

 

[MrBrunotte]

I think it's unsafe to trade while there is bank holiday in US Forex Calendar @ Forex Factory

Looks like it! The range today has only been 27 ticks!! and the volume is really low..

 

[BLS]

Bank holiday in America today so I won't be trading. Here's some charts from last Friday that I marked up.

 

[samich1262]

My first trade today (- 6 ticks)

Not a good start today!
I sold the market as a RB...
I sold at 1,2568 and used a limit sell order one tick below the resistance and an initial stop 1 tick above recent high.
To me the setup looked ok, it was a good squeeze setup and the bears had been trying to push the market down with a lower low smaller micro double top at 10:24, but the market is in the low of the trading range which always is a bit scary.

Maybe I should have been more concerned with the resistance back at 8:39?
I would very much like your comments on my analysis, how do you guys see the market at this point?

I post this trade right after I have been stopped out and I will repost a snapshot in a couple of minutes so that we can see what happened..

Hmm that IRB is a little tricky because of the Double-bottom pattern right before it. However, if you scroll back and look at more price action, that upper barrier looks to be pretty strong. And since it is about a 20 pip range you're probably safe in taking it. That DB looks like a pretty good IRB on my chart but it didn't form the same way on yours. It's a double bottom after a possible reversal pattern, and on my chart it looked more like a BB. I don't usually like BBs in the middle of a range but in context it looked pretty solid. It only makes it about 9 pips when it hits the barrier and turns around. I probably would've exited once it hit that barrier just because it was almost to the target and hitting possible resistance. Bank holidays make me uncomfortable because there might not be enough follow-through, so I skipped the US session today. Good thing too, it looks like it just drifted sideways. If I were going to trade today I'd just do the London session and skip when the NY market opened.