In the past I have been able to determine the potential trend moves using fibonacci clusters on medium to long-term charts. However, I seem to be struggling to identify the correct points where corrections usually tend to end with fibonacci clusters. In terms of corrections the fibonacci expansion tool which has been particularly useful in trends does not seem to provide much help with the 1.0 and 1.618 levels when combined with the retracement tool to create clusters of potential support or resistance zones. Could someone please suggest what a good way to identify strong support and resistance levels in a correction would be. I also tend to use volume for confirmation but would need to identify solid end of correction zones first I believe.
BuddieBuddiee
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have you tried Danielcode ?
www.thedanielcode.com
Danielcode Futures & Forex | Trading & Training
Do you know if it is free?have you tried Danielcode ?
Danielcode Futures & Forex | Trading & Training
Rufus_Leakey
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Just a bit of context.
The first thing one needs to make use of Depth of Market
is a quality data feed. Don't bother with anything else until you
have that in place. Now back to my original comment below
-------------------
I have pointed this out a couple of times previously
Reading order flow is fine IF you have the skills and can keep up
with fast market conditions. Few (if any) retail traders have the skills
or the talent. I have been doing this for many years and still find it
challenging to keep up and make good decisions. What makes it
easier to is to consolidate the data using CVD (once you learn how
to set it up to achieve the proper granularity for your target market)
Then it is a matter of watching the price action at specific points in time
and matching what you see to the volume coming onto your screen.
Nothing work perfectly of course. But in my opinion it is a easier and
more accessible way to trade (for amateurs).
I will attach a chart, but without the proper background it will probably not
make much sense at first. Reading up on the subject of Cumulative Volume
Delta might be a good idea. As I have mentioned I will be LiveStreaming my
own trading in the coming days on Twitch and YouTube. I don't plan to do
that for very long, so it might be a good idea to visit and take a look. It might
help you
Postscript
The chart shows the S&P 500 Futures Market (NY session). CVD at the bottom
setup to provide max granularity. Price action shows a breakout (B/O above a key
reference) The CVD updates at intervals that align with the B/O so (eventually) the
trader learns to see whether the breakout has legs or is stalling on low volume.
Learning to identify the components (price action & volume) accurately is what
is required for success.
PostScript
It was called to my attention that my CVD settings were incorrect.
I have removed that chart, replacing with a chart with corrected settings
I apologize for the inconvenience.
Good luck
The first thing one needs to make use of Depth of Market
is a quality data feed. Don't bother with anything else until you
have that in place. Now back to my original comment below
-------------------
I have pointed this out a couple of times previously
Reading order flow is fine IF you have the skills and can keep up
with fast market conditions. Few (if any) retail traders have the skills
or the talent. I have been doing this for many years and still find it
challenging to keep up and make good decisions. What makes it
easier to is to consolidate the data using CVD (once you learn how
to set it up to achieve the proper granularity for your target market)
Then it is a matter of watching the price action at specific points in time
and matching what you see to the volume coming onto your screen.
Nothing work perfectly of course. But in my opinion it is a easier and
more accessible way to trade (for amateurs).
I will attach a chart, but without the proper background it will probably not
make much sense at first. Reading up on the subject of Cumulative Volume
Delta might be a good idea. As I have mentioned I will be LiveStreaming my
own trading in the coming days on Twitch and YouTube. I don't plan to do
that for very long, so it might be a good idea to visit and take a look. It might
help you
Postscript
The chart shows the S&P 500 Futures Market (NY session). CVD at the bottom
setup to provide max granularity. Price action shows a breakout (B/O above a key
reference) The CVD updates at intervals that align with the B/O so (eventually) the
trader learns to see whether the breakout has legs or is stalling on low volume.
Learning to identify the components (price action & volume) accurately is what
is required for success.
PostScript
It was called to my attention that my CVD settings were incorrect.
I have removed that chart, replacing with a chart with corrected settings
I apologize for the inconvenience.
Good luck
Attachments
Last edited:
Hi Steven,
Where you went long, presumably off of the EMA, I would not have taken that trade based on the CVD. Price was going up while CVD was declining. Conflicting signals. A divergence. Bullish absorption if I am correct. Plus the CVD candles in the look back period where you took the trade were noticeably smaller than the immediate previous look back period. Indicating weakening. Based on the CVD I would have been looking for a pullback or reversal which obviously did not happen. Price moved up consistent with the close above the EMA. The look back period is also quite short with CVD resetting what appears to be every 6-9 candles or so. I am missing something here. I can't quite figure it out. Can you provide more of an explanation concerning your use of CVD.
Thanks
Where you went long, presumably off of the EMA, I would not have taken that trade based on the CVD. Price was going up while CVD was declining. Conflicting signals. A divergence. Bullish absorption if I am correct. Plus the CVD candles in the look back period where you took the trade were noticeably smaller than the immediate previous look back period. Indicating weakening. Based on the CVD I would have been looking for a pullback or reversal which obviously did not happen. Price moved up consistent with the close above the EMA. The look back period is also quite short with CVD resetting what appears to be every 6-9 candles or so. I am missing something here. I can't quite figure it out. Can you provide more of an explanation concerning your use of CVD.
Thanks
BuddieBuddiee
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no I haven't. but I know someone who has tried it. not sure if successful. I replied to your post while I was looking at my archived stuff I saved over the years and thought I'd throw it out here.
I've read and tried some Michael S. Jenkins stuff.
also there's GANN Murrey Math
https://www.yumpu.com/en/document/view/6222165/gann-articles
https://www.yumpu.com/en/document/read/6222165/gann-articles
right now am using the "7.8125" factor -- derived from 62.5 /8 and also the .272% - 1.854% and all the stuff you'd see where I've posted re SPX. hard to articulate.
I'm not at this site during trading hours...so that's why the late reply.
BuddieBuddiee
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ha... nothing's free, apparently.
The pullback you mentioned did not happen because one side gave up. You call it bullish absorption. Either way is fine.
My apologies
My settings were incorrect. I should not have been posting when feeling unwell. the first attachment below shows my correct settings
The second shows the 5 min chart with the entry within the time period we spoke of.
The anchor period is 1 day (resets every day)
and the time frame is 1 min which should provide adequate granularity for intraday trading a chart with 5 min bars
Please advise if this make the chart more readable for you
Attachments
Last edited:
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