Bob Volman Price Action Scalping

[cha-ching]

Took the same trade Virtuesoft. A gimme.

I have just started trading EUR-JPY as a it is trends and has ADR similar to EUR-USD. I am trying to find the lowest spread I can and it can vary between brokers. Can I ask you (or anyone else fot that matter), what kind of spread and commission you pay on this pair?

Cheers,

MArk

https://www.myfxbook.com/forex-broker-spreads

You can add commission to spread (but seems they only add one-way commission. I could be wrong), filter different pairs and brokers.

Of all the regulated, US friendly brokers I found IC Markets (Australian) frequently gives the lowest spread (including commission) for both EU and EJ. Your mileage may vary since you're in UK and you have a lot more choices. IC Markets has two platforms for forex: MT4/MT5 and cTrader (which I've never heard of).

 

[Mark1979]

https://www.myfxbook.com/forex-broker-spreads

You can add commission to spread (but seems they only add one-way commission. I could be wrong), filter different pairs and brokers.

Of all the regulated, US friendly brokers I found IC Markets (Australian) frequently gives the lowest spread (including commission) for both EU and EJ. Your mileage may vary since you're in UK and you have a lot more choices. IC Markets has two platforms for forex: MT4/MT5 and cTrader (which I've never heard of).

Thanks Cha-ching. Yes, I have come across IC Markets but their commission is high at $7 per round trip fixed. I don't like the look of most of the brokers that top the fxbook.com feed. Anyway, conscious I am moving off topic...

M

 

[virtuesoft]

Thanks. I trade LMAX and typically spreads and commssion are around 1 pip but sometimes up to 1.3 (I have seen others which are consistantly below 1 pip but am reluctant to switch).

I currenty trade Eur/Usd, Aud/Usd and now Eur/Jpy as well. I don't think this would be possible trading tick charts (I trade 1 minute charts with other filters which means I am only really ever usually focusing on one chart at any time)....

Edit: I like you am trading the aussie less and less (and not on mondays as volatility is poor). See:
Forex Volatility | Forex Volatility Calculator | Volatility Calculation

I currently trade EURUSD, USDJPY and EURJPY. I have 4 monitors so I don't have to switch between the charts, and it's pretty simple to keep track of all 3 pairs. However, I do treat EURUSD as my priority and I focus on that when the market is busy.

I don't watch the price action develop bar-by-bar, actively monitoring the market like a hawk. I just look for the most obvious looking setups. The ones that are screaming out at you to take. I think that taking this approach makes it easier to watch multiple pairs.

 

[random12345]

I currently trade EURUSD, USDJPY and EURJPY. I have 4 monitors so I don't have to switch between the charts, and it's pretty simple to keep track of all 3 pairs. However, I do treat EURUSD as my priority and I focus on that when the market is busy.

I don't watch the price action develop bar-by-bar, actively monitoring the market like a hawk. I just look for the most obvious looking setups. The ones that are screaming out at you to take. I think that taking this approach makes it easier to watch multiple pairs.

Not to crash the thread again. One thing I would warn is that the sort of PA you traded today on the EURJPY is unusual - that flat bottomed sideways movement is irregular during the London daytime session unlike on the EURUSD. At the points where the EURUSD moves sideways, the EURJPY tends to go with the current intra day trend very slowly during these same periods. I.e. it moves in waves almost all the time and wouldn't provide much rectangular "bunching" which is why it trades so well with a moving average cross.

However I see you rarely take trades so maybe you have the patience for it!

 

[Mark1979]

However, I do treat EURUSD as my priority and I focus on that when the market is busy.

The ones that are screaming out at you to take. I think that taking this approach makes it easier to watch multiple pairs.

Absolutely agree.

If multiple trades are all setting up then focus on Euro.

For me if I have any doubt or hesitation about the trade then I know it is not right. The ones I take I genuinely have no doubts in my mind at all...

Edit: I would strongley advise against trading USD-JPY (but might be useful for direction). Only moves 50 pips a day.

 

[virtuesoft]

Not to crash the thread again. One thing I would warn is that the sort of PA you traded today on the EURJPY is unusual - that flat bottomed sideways movement is irregular during the London daytime session unlike on the EURUSD. At the points where the EURUSD moves sideways, the EURJPY tends to go with the current intra day trend very slowly during these same periods. I.e. it moves in waves almost all the time and wouldn't provide much rectangular "bunching" which is why it trades so well with a moving average cross.

However I see you rarely take trades so maybe you have the patience for it!

Thanks for the advice. I did notice that it moved very 'wave like' yesterday. It barely stayed still at all. It's quite a promising pair but I will have to be cautious.

Perhaps Bob's pullback setups will be more common in EURJPY. I noticed that there was a DD at around 14:12 that could have been taken. However, I missed that one.

 

[Mark1979]

Edit: I would strongley advise against trading USD-JPY (but might be useful for direction). Only moves 50 pips a day.

Dollar/Jpy pegging:

http://seekingalpha.com/article/303...s-market-trends-another-bullish-sign-for-gold

 

[virtuesoft]

Dollar/Jpy pegging:

Yen Peg Reinforces Market Trends, Another Bullish Sign For Gold - Seeking Alpha

I quite like USDJPY. Believe it or not, my best win percentage out of all the pairs I've traded is with USDJPY (although, the sample size is a bit smaller). It was very quiet during July, August and September, but since the beginning of October it's moved very well. It does normally move very slowly but usually in a predictable stepwise fashion. It's a good pair for RB and BB setups. Pullback setups are pretty much non-existent. The best thing about the pair is that because it moves so slowly the pre-breakout tension bars are usually so small that you can place a really tight stop. The spread is also tiny (usually about 0.2 pips) so it's the cheapest pair for me to trade.

 

[cha-ching]

My only trade today. Could've done better, or just skip ('coz the true second pullback high exceeded the first one by 3 pips, and playing it as a DD doesn't look quite right to me). Paid 1 pip insurance but still not enough given the previous resistance area.

 

[BLS]

I've been watching the EUR/JPY lately but I don't feel comfortable with trading a second pair yet. I've noticed a few times where the EUR/JPY had similar setups at the same time as the EUR/USD and that the ones on the EUR/JPY looked or worked out batter. I'm thinking maybe I can take more aggressive setups on the EUR/JPY but I know it's too early to draw any conclusions. Something for me to keep an eye on.

E1: Took an RB today on the EUR/USD. Not the best setup. I should try virtuesoft's approach to this method but I find it really hard to wake up early enough for the London session .

 

[BLS]

My only trade today. Could've done better, or just skip ('coz the true second pullback high exceeded the first one by 3 pips, and playing it as a DD doesn't look quite right to me). Paid 1 pip insurance but still not enough given the previous resistance area.

Why do you set your chart to show 240 units? Just curious.

 

[cha-ching]

Why do you set your chart to show 240 units? Just curious.

I usually set it to 225, to give a little more room than 200. Adjusted to 240 to show more bars before I posted yesterday and forgot to change it back.

 

[cha-ching]

I've been watching the EUR/JPY lately but I don't feel comfortable with trading a second pair yet. I've noticed a few times where the EUR/JPY had similar setups at the same time as the EUR/USD and that the ones on the EUR/JPY looked or worked out batter. I'm thinking maybe I can take more aggressive setups on the EUR/JPY but I know it's too early to draw any conclusions. Something for me to keep an eye on.

E1: Took an RB today on the EUR/USD. Not the best setup. I should try virtuesoft's approach to this method but I find it really hard to wake up early enough for the London session .

Given the downtrend your top barrier was near the 50% retracement (halfway of 1.2947 and 1.2915 is 1.2931). It's a countertrend RB near 50% level.

 

[BLS]

Given the downtrend your top barrier was near the 50% retracement (halfway of 1.2947 and 1.2915 is 1.2931). It's a countertrend RB near 50% level.

True but it is long range.

 

[cha-ching]

True but it is long range.

Yeah that's right. Shotgun wrote "After a trend move A to B, if a range forms that extends for a “long” time period, look for an IRB at the top of the range for a continuation of the trend down (shorting from top). 38-11.", so I was waiting for an IRB short but didn't find any entry. He only found one such example from Bob's chart though, and in today's case it eventually went countertrend :cheesy:

I agree with you that there are some subtle things missing from the book, and the weekly chart really helped a lot. Before Sandy there were usually more than 10 setups during London/NY overlap. After that it's been 6 for three straight weeks (and they are all short, given Election Day, Veteran's Day and Thanksgiving). Still, if we can catch just half of Bob's setups, avoid most traps, it's promising just trading EURUSD.

What's your plan for the second half of December when many people take vacation? Should we all stop trading and focus on learning the existing charts?

 

[virtuesoft]

What's your plan for the second half of December when many people take vacation? Should we all stop trading and focus on learning the existing charts?

I remember that it was really quiet last Christmas so I expect it to be the same this year. I'll still trade up to the 21st December. I will probably return on 2nd January. If it's quiet I'll just study and work on my trading plan.

How do you get those vertical lines and bar counts for each hour? And also the red horizontal lines for the 50 and 00 levels?

 

[cha-ching]

I remember that it was really quiet last Christmas so I expect it to be the same this year. I'll still trade up to the 21st December. I will probably return on 2nd January. If it's quiet I'll just study and work on my trading plan.

How do you get those vertical lines and bar counts for each hour? And also the red horizontal lines for the 50 and 00 levels?

Thanks for the info.

Bar counts are from "Ruler", horizontal lines are from "Draw Horizontal Lines". They are included by default on the toolbar (the 2nd and the 9th from my chart).

 

[virtuesoft]

Thanks for the info.

Bar counts are from "Ruler", horizontal lines are from "Draw Horizontal Lines". They are included by default on the toolbar (the 2nd and the 9th from my chart).

Thanks. I thought there might be some setting that does it all automatically but I'm guessing you just draw these manually.

 

[cha-ching]

Thanks. I thought there might be some setting that does it all automatically but I'm guessing you just draw these manually.

Yeah, also to kill time when market is quiet. I think this can be done automatically as well using ProRealTime script, but since I only trade one pair, and no indicators are needed to trade Bob's method, there's not enough incentive for me to learn a new language.

 

[stehlikpetrmsncom]

I've been watching the EUR/JPY lately but I don't feel comfortable with trading a second pair yet. I've noticed a few times where the EUR/JPY had similar setups at the same time as the EUR/USD and that the ones on the EUR/JPY looked or worked out batter. I'm thinking maybe I can take more aggressive setups on the EUR/JPY but I know it's too early to draw any conclusions. Something for me to keep an eye on.

E1: Took an RB today on the EUR/USD. Not the best setup. I should try virtuesoft's approach to this method but I find it really hard to wake up early enough for the London session .

I regret missing the S1, because I think it's fine. Sure, the entry nor the barrier aren't perfect, but it's stemming from 50 level fight and there is a clear trend equals trend opportunity.

S2 was probably best skipped since it would have to cut it's way through clustering price action.

I entered E1, but 2 pips lower than you. I thought that since. It was a pretty pattern overall but the barrier was terrible.

I wonder why sometimes activy fades away so early.