Trading the Wyckoff Method: Today's S&Ps Last night, we held a seminar on trading the Wyckoff Method focusing on the signs of strength and signs of weakness. We incorporated Tom Williams’s work on the SOS and SOW and my work on coordinating these with multiple time frames. It was a terrific group of traders, asking incisive questions about the material. We went on for … [Read more...]
Using the 3-10 Oscillator
Using the 3-10 Oscillator In last night’s Deep Practice, I was asked to teach a little about using the 3-10 momentum oscillator. This is a tool I used extensively for many years. I found it best to use with a 20-bar moving average as a measure of central value and as a surrogate trend line. Although there are many uses of the 3-10, some, like divergences, are never a part … [Read more...]
Technical & Psychological Aspects of Trading
Connecting the Technical and Psychological Aspects of Trading How does a trader integrate the technical & psychological aspects of trading? In our weekly Deep Practice program, traders come together to actively learn and practice trading the markets. Often, we will look at a specific market principle in some depth. We did that in Thursday’s Deep Practice. We looked … [Read more...]
Change of Behavior Trade
Change of Behavior Trade Some of the best trades occur after the market exhibits a change of behavior. We aren't looking to buy the low tick or sell the high one -- that's a fool's game. No, we don't want to be making random traders where we "think" the market will turn. That's bad trading. I am sure many would be traders are now surveying their losses from the morning, … [Read more...]
A Short Study of Volume
A Short Study of Volume Here is a short study of volume in this morning’s S&P futures (ES, e-Mini). We are using the Weis Wave, which aggregates wave volume, and the 3,000 Tick chart, which shows overnight waves well. A: Supply into yesterday’s low, no question about it. B: We break yesterday’s low and selling isn’t strong. Hmmmm …. C: A push down, but all … [Read more...]
