Saturday, November 29, 2008

Filtered Time & Sales


I haven't use the filtered time and sales window in a while since I started using the 5 seconds chart and also because the time and sales window makes me overtrade. In the last 3 months I have been using very wide targets with nice results so I stopped using the TS, I thought I didnt need it anymore.
Today I wanted to do an exercise with the Time & Sale window (TS) taking advantage of the low volume day. I have been reading the filtered TS looking to confirm Magic tick and breakouts and I have to say that worked beautifully. My only consideration it is to do it only in key areas, otherwise I become a momentum player and finish scalping and overtrading.I spotted good examples of how to use it.
1) The bar at 10:51 (In my chart 7:51) which test the open didn't have any big players so I spotted that would bounce from support (Open price) and I use it to close my short. That was wicked.
2) As soon as the price broke over 884.25 R for 2 ticks at 10:59 (chart 7:59) , big players started selling so I shorted again. It would be a good scalp as it test again the open price but I wanted to see if it would break the lows of the day which it didn't.
3) Once the price touched the open price for 3rd time 11:03, I saw a big sale 1 tick under open price but inmediatly the big guys started buying, I knew my previous short would get stop out, but I gave it the opportunity instead of closing. That was the beggining of the rally up that will continue until the session was close. I have to say that again it was very clear.
4) 11:42 price breaks over pivot 887 for 1 point , and big sellers started droping the price to the support at the 884 level. Pretty cool.I am not sure how easy will be to read this in a high volume day, I am going to try some replays this weekend. Again this is something to be used in key areas, close to support/Resistance , Open range , open price etc. And the idea is to confirm Magic tick and break outs.


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