ES Tuesday 3-6-12

Kicking off Tuesday's trading topic with a question:

What would Bruce do?

It's an easy game and designed to make you think and become a better trader. Feel free to replace Bruce with KoolBlue or Monkey Meat or any other trader that you follow, understand or wish to emulate.

Before, at or after the market open and then at any time during the trading day ask yourself what that trader would do at this point. Post your trade (or non-trade) with the reason that you would have (or would not have) taken it. If you're learning and not posting an actual trade then say something like "I would have gone short here if I were trading real money because we hit up against the triples on..." etc.

If you see someone comment on a possible trade setup that you recognize then reply and confirm that you agree with the setup or what you think the setup should have been or why it is invalid.

Think of this as your midterm. You've been reading these topics for days, weeks, months or years. Now try it out and get feedback from your peers (hopefully).

Good luck everyone!

Y, I use cumulative delta.. Its another great tool.. I use them differently though. In ES, I use CD when I'm trying to catch a falling knife.. I look for CD much the same way you use footprints, If I like a level, I'll wait for other traders to start with the bids at the level to clue me in if this level might get respected and etc.. I also look for diversion from CD and price, those can also be significant as it tells me what future traders are doing and how price is responding.

I use VOLD for directional/type of day bias.. ADD is also a part of the equation but the more flexible part of it. ADD is a lot more changeable than VOLD

Yes, I like CD for the day session but have not had much luck using it on a running total basis. I've seen too many swings fail with no indication from cummulative delta points from previous days.

Just my experience of course. the creator now has prox bars for sierra..interesting concept but he is also selling some other weird stuff ( I'd have to find that link on another computer) and it makes me question how much money they have actually made trading

Jedi, could you post a chart of it for today whenever you have a chance? Thanks

AYN

$tick divergence forced me back in at 41.50..but I think I may have been fooled..that double matching low is crappy...but will stick to the plan of taking small trades in order to attempt to catch one good long that doesn't get stopped on runners

Bruce, what are prox bars?

jedi,
I am not your father...

thanks for your comments on $VOLD.

here is a link Paul...I don't actually know specifically what they are....let me find my other link just so folks can see what the Fulcrum trader folks are now doing since they sold out

but here is prox bar link

http://trendscalping.com/

that 42.75 is an interesting magnet now.....still prefer the longs from lower near 38 but not sure they will give it to us

trying again from 41 even...$tcick divergence still...I've become a scalper...it's official..ha!

CD is better used on a smaller time frame.. I used to use it on a 1k vol chart close up just to see if bids/asks has came in at a level if I was planning to counter trend..

I've never looked at the $VOLD before today.
Some one requested a chart.

here is a chart of today (no date printed inside the chart)

and a chart of yesterday 3-5-12 with the $VOLD in the subplot

Originally posted by BruceM

great trade Horse...it's all cool APK..thanks for the recap..

final contract exit at 42.50.

thanks bruce! have a lot of respect for you and your thoughts for longs today added some conviction to my trade idea. when we have such a strong long term timeframe, it's easier to side with them, even on a day like today!

will be interesting to see what happens tomorrow.