Bob Volman Price Action Scalping

[maxr]

On another aspect of Bob's FPAS methods - Bob says:

There is no need to know yesterday's high or low, whether the market is in an uptrend or a downtrend on a bigger frame, or if it is running into some kind of major support or resistance level from the day before. In fact, in most instances it is totally irrelevant what happened a few hours back.

I expect we've all met guys at the other extreme, who start each trading day with a complete review of last night's forex news and maybe a bank report, then they do a top down analysis of the charts from the hourly down to the 1 minute. Plus , they constantly flip through these charts all day. They often then enter day trades on a 1 minute chart lasting a few minutes to a few hours, for 10-20 pips first target - not so different from scalping. So:

1) I understand what Bob's saying above, but do some of you find a bit more info useful - like maybe an additional slightly higher time frame chart of 5-15 minutes?

2) I've heard that recently FX markets are being moved more by randomly timed and /or unexpected verbal statements made by politicians and officials. Do any of you find following a live FX sqawk feed useful ?

Thanks, Max

 

[ptsnu]

On another aspect of Bob's FPAS methods - Bob says:




1) I understand what Bob's saying above, but do some of you find a bit more info useful - like maybe an additional slightly higher time frame chart of 5-15 minutes?


Thanks, Max

I tried for a long time to use multi frame overview, with entry on 1 minute chart.
That was because ppl and books advice the 5 and 15 min chart, so I used to look at them even if I found them terribly slow. The moment I started using only 70 tick, my perception of the market was more comfortable. But, I think there most be ppl who feel the opposite, who find the 1 minute chart and the 70 tick too fast for their taste, and as u probably know, is all about trading the way ur personality fits better with the method.

 

[maxr]

Bob is clear about not wating for 50 zone to break, cause its a zone, not a specific level.

The very last line u draw I think definetely is not ok for the setup. The second, the one closer to the one I did draw, is probably better.

Hi PTSNU - yes, I was a bit dismissive of the top line at first, but them I looked at the time, which is still within the range of the common London morning false break. Also, that top line is the breakdown level of two recent failed range breaks both of which had some pressure under them (see below) - so someone was happy to sell EUR twice at or around the 50 level?

Just my 2c - I expect we can always find reason for not taking any trade, the problem is knowing when to ignore them What happened next - did it continue up, or fall back into the range?

Max

 

[ptsnu]

Hi PTSNU - yes, I was a bit dismissive of the top line at first, but them I looked at the time, which is still within the range of the common London morning false break. Also, that top line is the breakdown level of two recent failed range breaks both of which had some pressure under them (see below) - so someone was happy to sell EUR twice at or around the 50 level?

Just my 2c - I expect we can always find reason for not taking any trade, the problem is knowing when to ignore them What happened next - did it continue up, or fall back into the range?

Max

Hey Max,
I can, and must only see only 2 hours b4 of PA.
I want to be able to exploit repetition, so I expect this trade, to be ok, to fit the method, so tomorrow or any day in the future I can trade one very similar with comfort.
After the break, and after I took the profit, it came back to form a new range that I was able to exploit for a short position for another 10.

 

[BLS]

1) I understand what Bob's saying above, but do some of you find a bit more info useful - like maybe an additional slightly higher time frame chart of 5-15 minutes?

I sometimes have trouble reading the overall pressure with just the 70 tick chart so I get trapped in inferior trades. I'm trying to use the 5 minute chart so give me a bigger picture but I find myself going back to focusing only on the 70 tick chart. I think that if you get enough practice reading the 70 tick chart that the higher time frame charts won't be necessary. As you can see in charts from last week Bob sometimes zooms out a bit to show more bars because he felt it was necessary to see the bigger picture. It's possible that he didn't do that during his live session and that he's just really good and keep track of price action, but that kind of flexibility, of knowing when you need to see more bars (among other things), is necessary to trading well. Developing that sense of flexibility is going to take time. Well, I guess you can zoom out a bit so that you're getting 1.5-2 hours worth of price action on the chart.

You can try having a 5 or 15 minute chart on the side but remember that it may lead you to scalp with a directional bias (eg you see a strong bull trend on the 5 minute chart so you keep going for longs even though the 70 tick chart shows a possible reversal forming).

2) I've heard that recently FX markets are being moved more by randomly timed and /or unexpected verbal statements made by politicians and officials. Do any of you find following a live FX sqawk feed useful ?

Thanks, Max

I don't think it is necessary for Volman's method. The 70 tick chart will probably give you some kind of indication when that kind of information crosses the wires (bars being spit out 4 times as fast, lots of rapid movements in price etc). Knowing that kind of information a bit before the masses doesn't necessarily make it tradable, at least under Volman's method. I personally would find it distracting if nothing else.

Took four trades today. I got trapped three times under the same resistance area. That was bad. But I don't really know how I could've avoided trading E2 and E3 (E1 should have been an easy skip) unless I paid more heed to the probable barrier defense for that double-no-touch barrier option. Oh well, I guess it's not everyday that a previous year's high get's taken out so I shouldn't worry too much about it.

 

[maxr]

Thanks BLS - you said:

I got trapped three times under the same resistance area.

This is a timely example of why I was asking abut longer charts. I spent some time at the weekend with some price action momentum / reaction traders whose techniques (which include looking at all time scales) might have led them to short into that resistance level on a 1 min chart. They might have left sell limit orders in the book at that level, depending on what else was happening. However if it's any consolation, they'd probably have got stopped out too, but going the other way...

 

[ptsnu]

I took 4 trades today, positive at the end. 4 RBs, man I got to love Rbs, currently studying IRB, seems like is going to take me some time to assimilate that setup, its aggressive, and I consider myself aggressive at taking trades.

Im currently having a look at ur charts BLS, is taking me some time to find the exacts spots, because u use the Eastern time on the charts .

My final tought on the time frame topic is that if I looked at 5 and 15 minute chart I would start distrusting the preset SL. In my case, I don't see this great method as a way to enter more precisely after having analyzed bigger time frames. This is not a minutes time frame, this is a chart of ticks.
That doenst mean it cant be done, but I couldnt work like that. All the info I need about the overall PA I can find it on a good 2 hours 70 tick chart.
If there is a super huge resistance, with confluence of fibos, monthly tops, pivot etc, the movement and reaction and patterns formed itself in the 70 tick when getting close to that level will show me the way, and I didn't even need to know that there was a Chinnesse wall there, or a Colorado Canyon there.

 

[ptsnu]

Took four trades today. I got trapped three times under the same resistance area. That was bad. But I don't really know how I could've avoided trading E2 and E3 (E1 should have been an easy skip) unless I paid more heed to the probable barrier defense for that double-no-touch barrier option. Oh well, I guess it's not everyday that a previous year's high get's taken out so I shouldn't worry too much about it.

Attached

 

[maxr]

PTNSU - I think you mentioned somewhere that BLS's charts are in Eastern Time, was that correct? Which time zone are yours in? [err, why don't I just look at my charts and work it out ]

 

[ptsnu]

PTNSU - I think you mentioned somewhere that BLS's charts are in Eastern Time, was that correct? Which time zone are yours in? [err, why don't I just look at my charts and work it out ]

Yes, he uses Eastern time
I use the same as prorealtime server, London time, even if live on Eastern time zone, I can later compare easily with Bobs charts because he seems to be using GMT as well

 

[BLS]

Shorting what kind of setup

DD breakout variety, See Figure 7.5

 

[ptsnu]

DD breakout variety, See Figure 7.5

Oh, yes, its been a long time since the last time I saw the sort of DD that pirces ema and closes above in realtime. The pullback has weak bars, i have seen that kind of pullback work good when it doesnt go tru ema. Still, the important thing is if its a valid setup, seens valid but tho the line border of more than 2 DDs, there seems to be a microcluster 1 pip below the border, b4 the DD

 

[BLS]

Yes, he uses Eastern time
I use the same as prorealtime server, London time, even if live on Eastern time zone, I can later compare easily with Bobs charts because he seems to be using GMT as well

Sorry for not noticing this earlier. My charts display PST, which is GMT-8 (EST-3). Bob is using GMT+1.

 

[ptsnu]

Sorry for not noticing this earlier. My charts display PST, which is GMT-8 (EST-3). Bob is using GMT+1.

Np, .
Ahh, its +1, good to know thx. Now I understand y even adding 5 hours to ur charts I was still having trouble to find the spots!!

 

[virtuesoft]

Is anyone else experiencing extremely volatile and inaccurate bars on ProRealTime?

Some bars are 10 pips tall and are printing extremely fast, perhaps one bar every 3 seconds. At first I thought it was just due to the extreme volatility in the market at the moment. However, when I compare ProRealTime to my brokers quote panel, the Bid/Ask is remaining fairly stable and is not touching most of the prices that the bars in ProRealTime are showing.

For example, as I type this, the Bid/Ask in EURJPY has remained at or around 126.785/126.795 (1 pip spread) during the past 60 seconds. It hasn't dropped further than 126.770/126.780, and it hasn't risen any further than 126.790/126.800. This should mean that during the past minute the range has been 3 pips. ProRealTime has printed 18 bars within this 1 minute period. The upper range looks correct with a high at 126.800. However, the low is way off, with lows of 126.690. Most of the bars are roughly 9 or 10 pips tall. The lower prices that ProRealTime is printing aren't being touched.

There are periods where the feed seems to return to normality and the bars print correctly.

I have also compared the bars printed by ProRealTime to the bars printed by Dukascopy (I have a demo account with them, but they're not my main broker). There is no problem with the Dukascopy feed. It is printing the correct prices and is matching up well with the quote panel of my main broker.

 

[BLS]

Is anyone else experiencing extremely volatile and inaccurate bars on ProRealTime?

Some bars are 10 pips tall and are printing extremely fast, perhaps one bar every 3 seconds. At first I thought it was just due to the extreme volatility in the market at the moment. However, when I compare ProRealTime to my brokers quote panel, the Bid/Ask is remaining fairly stable and is not touching most of the prices that the bars in ProRealTime are showing.

For example, as I type this, the Bid/Ask in EURJPY has remained at or around 126.785/126.795 (1 pip spread) during the past 60 seconds. It hasn't dropped further than 126.770/126.780, and it hasn't risen any further than 126.790/126.800. This should mean that during the past minute the range has been 3 pips. ProRealTime has printed 18 bars within this 1 minute period. The upper range looks correct with a high at 126.800. However, the low is way off, with lows of 126.690. Most of the bars are roughly 9 or 10 pips tall. The lower prices that ProRealTime is printing aren't being touched.

There are periods where the feed seems to return to normality and the bars print correctly.

I have also compared the bars printed by ProRealTime to the bars printed by Dukascopy (I have a demo account with them, but they're not my main broker). There is no problem with the Dukascopy feed. It is printing the correct prices and is matching up well with the quote panel of my main broker.

Volman attributes this with to a problem with the tick data filtering in ProRealTime See Chart 5 from week 4 (attached).

 

[virtuesoft]

Volman attributes this with to a problem with the tick data filtering in ProRealTime See Chart 5 from week 4 (attached).

Thanks for the information BLS. Its nice to know that I'm not the only one experiencing the issue. In the future I will probably take this in to account and try to cope with it as Bob suggests. However, it has been a complete pain today. I only realised what was happening quite late on. I've potentially missed out on a few opportunities today because of this. I shall email ProRealTime and have a moan at them.

 

[ptsnu]

Yes, I saw some bars like that today on Eur/Usd, kind of scary, but I remained calm until it went back to normal behavior. Today was a day of opportunities, took a few but when market accelerates, and volatility increases sometimes is not easy to know at what exact point the market is back to normal, in order to take the opportunity.

 

[BLS]

More charts from Bob

 

[ptsnu]

More charts from Bob

Thx Bob and BLS!