Bob Volman Price Action Scalping

[BLS]

I guess september didn't bring the price swings we were looking forward to, I think the boredom will kill me.

You might see some price swings later when the FOMC releases their rate decision and economic projections. I think people are wondering if QE3 is going to be announced today or not.

I'm trying to stave off the boredom by rereading parts of Volman's book.

 

[stehlikpetrmsncom]

You might see some price swings later when the FOMC releases their rate decision and economic projections. I think people are wondering if QE3 is going to be announced today or not.

I'm trying to stave off the boredom by rereading parts of Volman's book.

Yep. It's definitely swinging

 

[samich1262]

Got one. Nice BB. Would've been even better if it sat 1 pip lower. It is now trying to retest the 50 level, but I got my 10 pip out of it.

 

[samich1262]

Btw, I can never decide whether or not to trade during FOMC or skip it. Seems like the price will make random jumps during Bernanke's conferences depending on how he answers certain questions. I've bee watching them but it seems risky. What do you guys do?

 

[BLS]

Btw, I can never decide whether or not to trade during FOMC or skip it. Seems like the price will make random jumps during Bernanke's conferences depending on how he answers certain questions. I've bee watching them but it seems risky. What do you guys do?

I sit on my hands and wait for price action to settle down a bit.

 

[stehlikpetrmsncom]

Got one. Nice BB. Would've been even better if it sat 1 pip lower. It is now trying to retest the 50 level, but I got my 10 pip out of it.

View attachment 144812

Hi, did you not worry about running into that very distinctive high at 1.296 from about 18:33?

 

[samich1262]

Hi, did you not worry about running into that very distinctive high at 1.296 from about 18:33?

I wasn't really worried about it in this case. For a BB in a pullback that also had support, I didn't think it would pose a problem. There are some examples in the book that are more intimidating than this one, at least I thought so.

 

[cha-ching]

Anybody traded this RB before news?

I wasn't sure. The buildup and squeeze look ok although price did not retest 20ema which Volman preferred to see before the breakout. I was worried about vacuum from 13100, also previous PA (the two ellipse area at the beginning of the chart), and the news in about 12 minutes.

What do you guys think?

Edit: Another question is if you'd trade this, where would you set the initial stop? The last arch seems too far away from the entry, more than 10 pip. Maybe that's another reason why this should be skipped?

 

[stehlikpetrmsncom]

Anybody traded this RB before news?

I wasn't sure. The buildup and squeeze look ok although price did not retest 20ema which Volman preferred to see before the breakout. I was worried about vacuum from 13100, also previous PA (the two ellipse area at the beginning of the chart), and the news in about 12 minutes.

What do you guys think?

Edit: Another question is if you'd trade this, where would you set the initial stop? The last arch seems too far away from the entry, more than 10 pip. Maybe that's another reason why this should be skipped?

I didn't trade it because the break, although with nice squeeze, practically happened after significantly higher high. Would the price form one lower high after this at least, I'd probably trade it.

Regarding the stop, you only have two reasonable options - 1 pip or 2 pips above the barrier. I'd go with 2 pips and after seeing that the break was strong, I'd lower it a pip. Everything else is either too far away or not technically justifiable.

 

[UnderstandingContext]

I usually check in a few times per week in this forum to see some of the charts and analysis posted (from BLS and others).

I imagine someone from this forum posted a question at my blog asking me "What I have learned so far?" by studying Bob Volman's trading style.

I posted my response at my blog (link below).

Learning to Trade Like Bob Volman.

Hope that helps.

 

[Giorrgi]

@UnderstandingContext,

Great post ! I'm eager to receive Volman's book and start practicing.

 

[stehlikpetrmsncom]

Again, I appreciate any comments and criticism of my trades, I learn from it. Thanks.

 

[shotgun77]

Again, I appreciate any comments and criticism of my trades, I learn from it. Thanks.

Hi, it looks to me like you made some really good decisions. What kept you from that first skipped BB/RB trade on first chart? Was it the stop placement that troubled you?

 

[shotgun77]

I imagine someone from this forum posted a question at my blog asking me "What I have learned so far?" by studying Bob Volman's trading style.

Good article. Thanks for sharing. Agree that screen time with focus will make you better regardless of your style/method. I experimented with getting more aggressive but that didn't work out so well. So agree that best thing to do is wait, wait.

 

[stehlikpetrmsncom]

Hi, it looks to me like you made some really good decisions. What kept you from that first skipped BB/RB trade on first chart? Was it the stop placement that troubled you?

I couldn't decide where to place the upper barrier and waited if maybe a pre-breakout squeeze could establish on of the levels as most important by few more touches.

 

[adilfx]

can we use this on gold, i took a silly long position at 1788 in feb..

 

[johnwolf]

Anybody traded this RB before news?

I wasn't sure. The buildup and squeeze look ok although price did not retest 20ema which Volman preferred to see before the breakout. I was worried about vacuum from 13100, also previous PA (the two ellipse area at the beginning of the chart), and the news in about 12 minutes.

What do you guys think?

Edit: Another question is if you'd trade this, where would you set the initial stop? The last arch seems too far away from the entry, more than 10 pip. Maybe that's another reason why this should be skipped?

Cha-ching, I'm not sure I agree with how this box was drawn. It looks more like a slow down-trend to me, starting at about 7:20. Especially with most bars below the EMA. I don't like trading them.

I read the 8:08 spike as a failed pullback, and your small range block as a pullback BB in the continuing downtrend.

So many ways to read this stuff it drives one nuts.

John

 

[BLS]

Didn't make any pip on Firday despite the favorable charts. I'm having problems with taking valid trades right now even though I'm trading at very low volume (1000 units). Oh well, at least I didn't take any trades out of frustration. That's progress for me compared with last Friday.

 

[shotgun77]

Didn't make any pip on Firday despite the favorable charts. I'm having problems with taking valid trades right now even though I'm trading at very low volume (1000 units). Oh well, at least I didn't take any trades out of frustration. That's progress for me compared with last Friday.

BLS, Good notes on your charts. What does the S: or M: mean?

On your chart that shows the RB and ARB between 4:40 and 4:48, I thought it looked like 11.6 pg. 159 in the book. Would you agree?

 

[Zonescalper]

Didn't make any pip on Firday despite the favorable charts. I'm having problems with taking valid trades right now even though I'm trading at very low volume (1000 units). Oh well, at least I didn't take any trades out of frustration. That's progress for me compared with last Friday.

Hi BLS,

I just looked at your analysis of your charts. What I have noticed is that you describe what is happening in the market, but I haven't seen you anticipate an actual set up.

I haven't read Volman's book, but he must have well described set ups. I think it would help if you would anticipate a set up instead of reacting on what is happening in the market. For example price is forming a set up called double bottom and you take a long scalp when you see price, just after creating a second bottom, go through the MA.

What helped me with my scalping was analyzing multiple time frames. By analyzing the 15 min and 5 min charts I have a good notion where support and resistance areas are. This way I can estimate how far price possibly would trend and that there is still room for me to scalp in the direction of that trend.

I hope this will help you with your scalping.

Kind regards, Zonescalper