DVA after RE

max asks this question in the Due Diligence thread:

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...if there is anyone in the forum who is consistently making money can you please chime in and share some setups or techniques. i don't think my brain can take any more books or articles on trader psych.

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Okay, here is a setup that I believe works but I have not been able to back test it (yet) to confirm that it works more than it fails nor have I been able to test what type of stops or targets to use on it.

The entry signal is as follows and these are Market Profile concepts.
1. Wait for Range Extension. This will show you the direction in which you are going to trade. (if RE is on the up side then you will be taking a long.)
2. Place a limit order to go long at the Developing Value Area Low if RE is on the upside and at the DVAH if RE is on the downside.
3. The limit will need to be moved if the relevant DVA moves before the limit is hit which is highly likely.

Click the "Reply to Topic" link. Then click on the Upload link just under the Message box and a new mini-window will open (assuming that the pop-up isn't blocked) and you can then browse for the file and enter the details.

Thanks for getting to it..I appreciate it

Bruce

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Originally posted by day trading

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Originally posted by BruceM

I'd like to know the answer to this question also if anyone trades it and do you find the POC or high volume area becomes a good target? Thanks
Bruce

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Originally posted by elite trader

What sort of stops and targets do you use for this in those instruments that you have just mentioned?

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Bruce & Elite: Apologies for missing this question. In the past I have used a 2 point stop on the ES for this although I don't know if that is optimal.

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[edited by day trading]

This post has been moved by day trading and a new topic has been started here with this posting: The TICK Trade

(each strategy should have its own topic/thread.)

Sorry, I misunderstood. I thought this thread was replying to Max's inquiry about sharing techinques. No problem, again sorry.

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Originally posted by myptofvu

Sorry, I misunderstood. I thought this thread was replying to Max's inquiry about sharing techinques. No problem, again sorry.

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No worries. Thanks for posting the setup. I have asked you some questions about it in the other thread.

Hi DT,

Just for clarity... where you entering on a limit order at the Developing Value area high and risking two points from there in the example of a short trade or would you ideally wait for the market to roll back over down and enter and then risk your two points..?

Just curious what you thought was a better approach too!

Thanks

Bruce

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Originally posted by BruceM

Thanks for getting to it..I appreciate it

Bruce

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Originally posted by day trading

quote:

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Originally posted by BruceM

I'd like to know the answer to this question also if anyone trades it and do you find the POC or high volume area becomes a good target? Thanks
Bruce

quote:

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Originally posted by elite trader

What sort of stops and targets do you use for this in those instruments that you have just mentioned?

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Bruce & Elite: Apologies for missing this question. In the past I have used a 2 point stop on the ES for this although I don't know if that is optimal.

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I put in the first limit order at the developing Value Area or just outside it - i.e. 1 tick better. But because the developing Value Area is sometimes changing while you are waiting for a fill I will move it appropriately. If, however, I have a limit order at the DVA and the DVA moves down by 1 tick (waiting for a short fill) then I will often leave the order in place because I don't want to lose my place in the queue. If it jumps by 3 ticks or more I'll move it.

ah cool..that makes sense...thanks DT

Bruce