Bob Volman Price Action Scalping

[Giorrgi]

I sometimes exit before the tipping point if I see a double bottom/top forming. In this case it was also a pretty good sign but a false break can only be perceived as false once prices have retraced back into the range. Before that, prices may pull back to the range and create an ARB opportunity which is still a valid setup.

In this case I think the setup is to be dismissed based on the fact that short continuation BBs seldom work these days. You either need a retrace or a long consolidation to be sure.

 

[BLS]

I made a mistake on this trading. I don't know why I did it, just my finger act. IRB is not good, it's too early I think. ARB also too early, I think. I felt bad a little when I had taken these positions. What do you think about this trading ?

onemore, this trading FB is better than before I think, but I wonder if it's too aggressive.

For your IRB, it did not make sense to go short yet since price was printing higher and higher lows. Your "ARB" entry does seem premature. It may help to squeeze the vertical scale of your chart so your charts look more like Volman's. Left click on the part of the chart with the price levels and move your mouse up or down until on the 00, 20, 40, 60, 80 lines are visible on your chart.

I think that FB was aggressive (looks more like a DD to me though) but you might like to trade in that way. I was looking to short around there too since price was rejected under the 20 but I didn't find a setup that looked good to me.

I happened to be on hold on the telephone when this BB came along, so I skipped it. But it's a good example of what might constitue a valid reason for scratching a trade prior to your tipping point. My take-away lesson is that you must focus and keep an open mind at all times rather than just fixating on your predetermined tipping point. In this case if you were to visualize the first three candles that printed after the entry bar you would see a very adverse doji that screams FASLE BREAK and you would be presented with an opportunity to bail out at or near breakeven. My problem is that I am trying to be very disciplined about my tipping points and this creates a conflict for me. ...... Any Thoughts?

I found following the tipping point to be better for me mentally. When I stray from the tipping point I agonize over which level is the best to exit on. But that doesn't mean you can't trail your tipping point to a more favorable level. If you see something adverse, like a double bottom or a block forming the other way, then you can trail your tipping point for a better exit (ex trail it to exit at the break of a block going the other way). Shorting where you did seemed unfavorable since the down move formed from a false break of the 20.

 

[BLS]

One thing that I'm not totally clear from reading the book is how do we define a squeeze, my idea is just a small or a few small candles right against the 20ema and S/R lines, am I correct on this?

For BB/IRB's a few (relatively) small candle would suffice. For something like an RB it may mean more bars, such as a cup and handle.

 

[garageboyFUJI]

For your IRB, it did not make sense to go short yet since price was printing higher and higher lows. Your "ARB" entry does seem premature. It may help to squeeze the vertical scale of your chart so your charts look more like Volman's. Left click on the part of the chart with the price levels and move your mouse up or down until on the 00, 20, 40, 60, 80 lines are visible on your chart.

I think that FB was aggressive (looks more like a DD to me though) but you might like to trade in that way. I was looking to short around there too since price was rejected under the 20 but I didn't find a setup that looked good to me.

Thank you. I got a chart better than before thanks to you BLS. I had thought vertical scale was not same. Thank you very much.

I'm sure I need to practice more and more about Volman's trading. and I think I'm aggressive. I have to wait. Also today, I took positions premature. Well, I do reevauating my actions, and I will try next week.

 

[datamold]

I sometimes exit before the tipping point if I see a double bottom/top forming. In this case it was also a pretty good sign but a false break can only be perceived as false once prices have retraced back into the range. Before that, prices may pull back to the range and create an ARB opportunity which is still a valid setup.

In this case I think the setup is to be dismissed based on the fact that short continuation BBs seldom work these days. You either need a retrace or a long consolidation to be sure.

Point taken Giorrgi. The wicked doji was indeed only a sign and the trade remained valid until it moved back into the range. So I guess I will stick with the tipping points. Thanks for the feedback.

Also I think that skipping these small continuation BBs is good advice. I was beginning to sense the same thing but I suffer from AMS (afraid I will miss something) and it is hard for me to resist. Your comment makes me realize that it is cheaper to miss something than to put capital at risk on anything but high probability situations.

 

[datamold]

For your IRB, it did not make sense to go short yet since price was printing higher and higher lows. Your "ARB" entry does seem premature. It may help to squeeze the vertical scale of your chart so your charts look more like Volman's. Left click on the part of the chart with the price levels and move your mouse up or down until on the 00, 20, 40, 60, 80 lines are visible on your chart.

I think that FB was aggressive (looks more like a DD to me though) but you might like to trade in that way. I was looking to short around there too since price was rejected under the 20 but I didn't find a setup that looked good to me.




I found following the tipping point to be better for me mentally. When I stray from the tipping point I agonize over which level is the best to exit on. But that doesn't mean you can't trail your tipping point to a more favorable level. If you see something adverse, like a double bottom or a block forming the other way, then you can trail your tipping point for a better exit (ex trail it to exit at the break of a block going the other way). Shorting where you did seemed unfavorable since the down move formed from a false break of the 20.

Thanks for the feedback BLS. You articulated your exit strategy quie well and I am in agreement. The wicked doji I observed is not that common and in any case as Giorrgi pointed out it's not a false break until it is.

You make an interesting observation as to skipping the trade because the down move originated from a false break of the 20. I never saw that, but you are correct and I will add that to my assesments in the future, Thank for that!

 

[BLS]

Tough week.

 

[Giorrgi]

There was a really nice textbook setup which I took but it was probably too early for you BLS ! There are a couple of other potential setups that I think we saw. On most of the following charts : either there was not enough squeeze or a rough barrier OR I was afraid of blocky price action to the left. I've started noticing that what I perceive as blocky gets easily overtaken by a proper move/setup.

 

[BLS]

Week 20 charts added
https://www.dropbox.com/sh/1amxmi9af0fk6ej/VA5_ZrjQF1

 

[Giorrgi]

Thanks !

 

[garageboyFUJI]

I greatly appreciate your kindness every time BLS.

Just several minutes ago, I could take just 1 time RB, but I made a mistake again. I entried T's break, not RB.

I skipped before that, I don't know that was good or no good:innocent:. I think it not enough squeeze.

Anyway thanks a lot.

 

[Giorrgi]

garageboyFUJI

I took the entry you marked as "T". I think it is the proper entry. I was 1 pip short of target tho.

 

[matty_dunn]

Week 20 charts added
https://www.dropbox.com/sh/1amxmi9af0fk6ej/VA5_ZrjQF1

Thanks again for the charts Bob and BLS. Greatly appreciated. The last few weeks have been tough!!!

 

[garageboyFUJI]

garageboyFUJI

I took the entry you marked as "T". I think it is the proper entry. I was 1 pip short of target tho.

Thank you for reply, Giorrgi.

My entry is 1.28676, exit is 1.2878. so my entry is too early or fast a little bit maybe. so I could get 10 pips. I'm relieved to hear " T is OK " you said. Thank you.

 

[Giorrgi]

1 trade today, the same we discussed before.

Edit : second trade just now

 

[garageboyFUJI]

I think RB was OK, but it didn't take profit this time. It seems a nice squeeze.
I didn't understand next BB well. I didn't feel confidence about BB. But, should I trade BB ?

Because I think it seems building up on Tokyo market. I regret it a little. I think it was chance.

 

[masa55]

I think RB was OK, but it didn't take profit this time. It seems a nice squeeze.
I didn't understand next BB well. I didn't feel confidence about BB. But, should I trade BB ?

Because I think it seems building up on Tokyo market. I regret it a little. I think it was chance.

I think your BB may be DD or FB..?

Too much stick to form, in you are missing something simple?

 

[Giorrgi]

I think RB was OK, but it didn't take profit this time. It seems a nice squeeze.
I didn't understand next BB well. I didn't feel confidence about BB. But, should I trade BB ?

Because I think it seems building up on Tokyo market. I regret it a little. I think it was chance.

Hi,

In your RB, the barrier was debatable (there was a tease and not a lot of touches of the level) + the squeeze wasn't that good. That's two reasons to not consider this as a textbook setup.

The BB is not a proper setup : even though there seems to be a barrier, the formation is too thin : there won't be enough traders trapped on the wrong side of the market to get you to your target, EXCEPT if the momentum/trend is strong. Here the momentum was strong, but there was no way to know that before it actually happened. Usually these won't workout.

 

[garageboyFUJI]

Thank you, masa55, Giorrgi.

I could understand you. I read Volman's report carefully again. I really think my BB is not a set up and the formation is too thin that you said, Giorrgi.

Also RB, I was not be found the formation like that RB in Past report of Volman's.

Thank you.

 

[Giorrgi]

No trades today.