Volume tells all

[charcoalstick]

What are typical VSA features u see in accumulation?

If the next bar after a WRB is a narrow range within the WRB (harami), how will u know whether this is a going to be a change in trend or a resting before continuation of trend (either a small dip before rally again or bullflag) ?

 

[Moxy9]

is this the only VSA thread?
Is there any other VSA thread?
pls direct me there, thks!

Here you go .. Volume Spread Analysis - Traders Laboratory

 

[ljyoung]

You're from Bellingham. Have you ever heard of a company called, Highlight Investments Inc?

No,not until you informed me of them. I checked them out and am uninterested in their product. They make a point about position sizing (overleveraging) and I would not disagree, to a degree. Which is to say if you have a crappy trading protocol and don't know that it is so, the old 'death by a thousand cuts' is till a possible outcome for even the most underleveraged trader.

lj

 

[Paul71]

I would submit that there is a difference between 'principles' and a trading methodology. Some traders' principles are other traders' anathemas. If the methodology is not time fractal independent then its credibility is less than if it is. I don't know the answer to your question - the old "1,2,3". While it may well be the 'wisdom of the ages', I personally would not use it as the basis for a trading protocol but have no problem whatsoever if others wish to do so.

lj

Principle was/may have been the wrong word, mechanism/process may be a better term(s). As for fractals, i personally don't consciously think of them.

 

[ljyoung]

Principle was/may have been the wrong word, mechanism may be a better term. As for fractals, i personally don't consciously think of them.

I'm not exactly sure what you mean by "... don't consciously think of them" and It doesn't seem worthwhile for me to probe further into that statement. I use multiple time fractals (time frames if you will) in my trading protocol as I'm sure many others do.

lj

 

[Paul71]

I'm not exactly sure what you mean by "... don't consciously think of them" and It doesn't seem worthwhile for me to probe further into that statement. I use multiple time fractals (time frames if you will) in my trading protocol as I'm sure many others do.

lj

I'm more interested in what buyers and sellers are doing around a price(s).

 

[ljyoung]

I'm more interested in what buyers and sellers are doing around a price(s).

Me too.

lj

 

[Paul71]

Me too.

lj

Trading 101. Which was the number of your last post.

 

[ljyoung]

Trading 101. Which was the number of your last post.

Yes, well, now that we're agreed that price and B/S activity around that price are of consequence, we can move to the next portion of the syllabus (let's call it Trading 101.1)which is, "Why is it even possible that Sarah Palin is considered by so many Americans to be a VP option and how can this be related, in meaningful terms, to the PV paradigm?". Answer: They're both looking ahead (her to 2012, it to a more immediate future).

lj

 

[Paul71]

Yes, well, now that we're agreed that price and B/S activity around that price are of consequence, we can move to the next portion of the syllabus (let's call it Trading 101.1)which is, "Why is it even possible that Sarah Palin is considered by so many Americans to be a VP option and how can this be related, in meaningful terms, to the PV paradigm?". Answer: They're both looking ahead (her to 2012, it to a more immediate future).

lj

Different process times. You can't move large orders through a small process timeframe, only in segments, this is order. So it's a case of whatever suits, it's a case of needs, this is why you/we/whoever trade in the fashion that we do. Probably why fractals exist, probably why diagonal trend lines exist in the fashion that they do.

 

[new_trader]

Time fractals are always evident. It's whether or not the trading protocol is applicable to all time fractals which is, IMO, of consequence.

lj

Was Benoît Mandelbrot a good trader?

 

[Paul71]

Was Benoît Mandelbrot a good trader?

 

[ljyoung]

Different process times. You can't move large orders through a small process timeframe, only in segments, this is order. So it's a case of whatever suits, it's a case of needs, this is why you/we/whoever trade in the fashion that we do. Probably why fractals exist, probably why diagonal trend lines exist in the fashion that they do.

Fractals exist because they are a fact of nature. As to position size, yes of course, one doesn't want to perturb what you perceive to be happening by being greedy - patience is better. Channels (a diagonal trendline pair) are, IMO, the 'carrier' of price.

lj

 

[ljyoung]

Was Benoît Mandelbrot a good trader?

Was Albert Einstein a good astronaut?

lj

 

[Paul71]

Fractals exist because they are a fact of nature. As to position size, yes of course, one doesn't want to perturb what you perceive to be happening by being greedy - patience is better. Channels (a diagonal trendline pair) are, IMO, the 'carrier' of price.

lj

Why does nature use/produce fractals?

 

[ljyoung]

Why does nature use/produce fractals?

Why is oxygen a ground state triplet? Ans: If it wasn't we wouldn't be having this conversation. The same, IMO, holds true for fractals, as in why is a tree a fractal entity? One can contemplate reasons why a tree is like a tree as opposed to it being like a stone and then test your various postulates, structurally and functionally. A more general, theophilosophical rejoinder would be, "Ask Nature and look for the answer in Nature." Not all entities are fractal but for those that are, I'm sure there is a good reason why that is so.

Then relate it back to what we were talking about earlier and see if it helps. I doubt that it would but I don't know. Another possibility would be to ask/read Mandelbrot or Taleb and see what their thoughts are. For me it is nothing more complicated than using multiple time frames in my trading since my protocol is fractal independent, as I've said earlier.

lj

 

[Paul71]

Why is oxygen a ground state triplet? Ans: If it wasn't we wouldn't be having this conversation. The same, IMO, holds true for fractals, as in why is a tree a fractal entity? One can contemplate reasons why a tree is like a tree as opposed to it being like a stone and then test your various postulates, structurally and functionally. A more general, theophilosophical rejoinder would be, "Ask Nature and look for the answer in Nature." Not all entities are fractal but for those that are, I'm sure there is a good reason why that is so.

Then relate it back to what we were talking about earlier and see if it helps. I doubt that it would but I don't know. Another possibility would be to ask/read Mandelbrot or Taleb and see what their thoughts are. For me it is nothing more complicated than using multiple time frames in my trading since my protocol is fractal independent, as I've said earlier.

lj

Do you think this post is relevant to the recent market?

 

[ljyoung]

Do you think this post is relevant to the recent market?

Which market and what is the context of its yet to be determined relevance?

lj

 

[Paul71]

Which market and what is the context of its yet to be determined relevance?

lj

What market do you want fractals to apply to? The choice is yours.

 

[ljyoung]

What market do you want fractals to apply to? The choice is yours.

Time fractals by their very nature apply to all markets. It is the trader's methodology which may not be fractal independent.

lj