Bob Volman Price Action Scalping

[Giorrgi]

When i mentioned about a possible retrace i was not implying that i would be looking to trade it, that would be a counter trend trade and the momentum was defiantly down.
What i would tend to do is look for a block brake around the 50-60% area, i pretty sure iv read it somewhere in bob's notes.

Another scenario could be that price would continue down (trend equals trend).

Well, the pressure was down if you took into account price action from more than 2 hours before that. Which is not quite the time frame that we take into account according to Bob's method. But you're right overall.

 

[Yorkshire Terrier]

Well, the pressure was down if you took into account price action from more than 2 hours before that. Which is not quite the time frame that we take into account according to Bob's method. But you're right overall.

You are correct and i should probably refrain from looking back to far.

 

[Yorkshire Terrier]

Thx Yorkshire for your suggestion.

Here some trades from today, the first chart is one of the skipped examples on Volman's book but I took it because of the two doji after the break, I thought that the break of those doji was enough to consider the momentum built up. Watching this chart now I think I did a bit gambler entry :cheesy:
Anyway, what about the second chart, i missed these trades that were good for me, what do u think about?
The third chart is a stop. I have a question about this. This is a BB or a RB? I think this is a BB and I made a mistake trading the BB countertrend...looknig at the chart is now clear that was probably a consolidation before a resume of the downtrend.....I've to learn a lot
In your opinion there are situation where taking a BB countertrend is a right choice?

Unfortunately due to work commitments i don't have time to trade Bob's method constantly, I've been off work this week so I'm able to TRY to apply the strategy.
There are other members of this thread that have more experience with this method than i, it is quite easy to start to stray from the path.
So i would be interested what others may think.

 

[Giorrgi]

Anyone is getting very choppy price action right now ProRealTime ? It's been 3 hours already that it doesn't go back to normal.

 

[BLS]

Anyone is getting very choppy price action right now ProRealTime ? It's been 3 hours already that it doesn't go back to normal.

Same here. Probably because of the G20 meeting today.

 

[sleepyhead100]

HI all..

I have been lurking for a while now and finally managed to read most of the posts in this thread , would like to thank all of you , indeed i could find alot of useful information .

Let me first start by introducing myself . I am not new to trading , I have been trading the Eur/USD and GBP/USD for the last three years , but i am the type of trader who never considered to take a look at any time frame lower than the 4 hour , I usually hold on to my positions for days and some times for weeks . As I will be graduating in a couple of month :smart: i decided to give professional scalping a shot , and maybe move to a full time trader after graduation (given the situation here in europe and the chances of finding a good paying job ).

I finished studying Bob's book last week and started today to apply his methods (still trading micro lots untill i get more confident applying the strategy and used to the faster time frame).

I will start by posting the first two trades i tool today , and i really hope to get some feedback from other traders applying the same method.

The first trade ARB : I noticed a range forming and then price retracing making a new higher low which indicated some bullish pressure , then the breakout without any pressure , i waited for the price to retrace to the brocken resistance which proved to become the next support and enterd the trade on the first bar after what looked to me as a double doji formation at support level . Unfortionatly I missed the 10 pips by a couple of pipettes , and had to exist at breakeven after prices returned to my entry point . I remember Bob mentioning in his book that he prefers not to scratch a trade as long as price still above EMA , was there a better way to deal with this one ??

Second Trade , I guess text book BB after a retracement .

 

[BLS]

The first trade ARB : I noticed a range forming and then price retracing making a new higher low which indicated some bullish pressure , then the breakout without any pressure , i waited for the price to retrace to the brocken resistance which proved to become the next support and enterd the trade on the first bar after what looked to me as a double doji formation at support level . Unfortionatly I missed the 10 pips by a couple of pipettes , and had to exist at breakeven after prices returned to my entry point . I remember Bob mentioning in his book that he prefers not to scratch a trade as long as price still above EMA , was there a better way to deal with this one ??

Second Trade , I guess text book BB after a retracement .

I skipped that ARB myself since a quick stop out seemed likely. I probably would've exited with price dipped to 39 after reaching 44 (false break; it looked like the 40 level was holding up as support). I like the positioning of that BB but I could not find an entry that I liked so I passed that up.

 

[Yorkshire Terrier]

Hey Yorkshire,
I realized the trade u took is the same I spotted on the chart and I basically did the fibo analysis u did, but when zooming on the setup, u will see there were 2 lows to break, and because the road to the bottom was giving only 8 pip, so I did hesitate about the signal bar to break. which of the 2 level of break did u choose when u traded it?
from hindsight, both would have hit the target, but the one proper to break according to the method is??

I set my barrier on the higher one but i think both where fine.

 

[Yorkshire Terrier]

Thx Yorkshire for your suggestion.

Here some trades from today, the first chart is one of the skipped examples on Volman's book but I took it because of the two doji after the break, I thought that the break of those doji was enough to consider the momentum built up. Watching this chart now I think I did a bit gambler entry :cheesy:
Anyway, what about the second chart, i missed these trades that were good for me, what do u think about?
The third chart is a stop. I have a question about this. This is a BB or a RB? I think this is a BB and I made a mistake trading the BB countertrend...looknig at the chart is now clear that was probably a consolidation before a resume of the downtrend.....I've to learn a lot
In your opinion there are situation where taking a BB countertrend is a right choice?

I've just had another read of the chapter on Block Brakes and page 128 seems to answer your question.

In brief Bob writes "There are situations in which a setup against the trend can be just as tradable as any other valid pattern.
However, since it is a somewhat riskier undertaking, it will pay off to carefully assess the overall conditions because the mere appearance of a setup alone is arguably not enough."

On reading that sentence it brought home to me a misunderstanding that i had about not trading a retracement or counter trend, it can be dun but as mentioned careful assessment must be taken.

Hope that helps.

 

[Giorrgi]

Horrible day in terms of pips lost. But it does teach me a lesson or two. I was surprised at the number of decent break formations that didn't break at all. The first and the last one are weak trades. The rest of em' seemed at least very decent.

 

[LoSparviero]

Horrible day in terms of pips lost. But it does teach me a lesson or two. I was surprised at the number of decent break formations that didn't break at all. The first and the last one are weak trades. The rest of em' seemed at least very decent.

Bad day to me too (about 9 pips loss). I learned a lot about IBR setups and the attenction needed when u want to take one. For ne is not easy spot a good one at a first glance, I need practice definitely with IRB. Today I spot something like 7 IRB, testing it with very small size. I didn't take a pict of them, next time I will post some IRB maybe somebody can give me some suggestion.

"There are situations in which a setup against the trend can be just as tradable as any other valid pattern.
However, since it is a somewhat riskier undertaking, it will pay off to carefully assess the overall conditions because the mere appearance of a setup alone is arguably not enough."

Yes this is the cause I trade that BB. I'm asking which are those overall condition in your experience with countertrend BB. Thx york,

cheers, iacopo

 

[Giorrgi]

Well in hindsight some of these trades are far from perfect, but right now I kind of switched gears and went from over cautious to just trading whatever the objective signs tell me to trade. Granted I might not be very proficient in reading them yet, but like Bob says, there should be no 6th sense in this. One must just take into account the pros and cons and trade whenever there's a technical edge.

Really interested in the charts this week.

 

[BLS]

Week 7 Charts from Bob

 

[matty_dunn]

Week 7 Charts from Bob

Thanks Bob and BLS. Have been hanging out for this week's charts.

 

[ptsnu]

Thx Bob and BLS!
Lets check that thursday.

 

[Yorkshire Terrier]

Thanks for the charts Bob & Bls
Always nice to be able to check the weeks past action against your own trades to see if your on the right track.
Much appreciated.

 

[ptsnu]

Hey guys,
I was checking last week trades, maybe someone can help me out with some small doubts. I took this trade as a SB. Bob saw it as a BB, but there is a trendline above that signals it like some sort of flag. Is this trend line an aid to find the setup, or is it a new requirement to valid with-trend setup. Also, am I the only one who sees it proper as SB. And finally, do we still trade SBs? I dont remember the last time someone posted a SB trade.
Thx,

 

[matty_dunn]

Hey guys,
I was checking last week trades, maybe someone can help me out with some small doubts. I took this trade as a SB. Bob saw it as a BB, but there is a trendline above that signals it like some sort of flag. Is this trend line an aid to find the setup, or is it a new requirement to valid with-trend setup. Also, am I the only one who sees it proper as SB. And finally, do we still trade SBs? I dont remember the last time someone posted a SB trade.
Thx,

Hi ptsnu,

SB can definitely be traded, even though we haven't seen many of late, much like DDs. Bob uses trendlines to help identify break points of flags in strongly trending markets (much like the one in the chart posted). They are by no means a requirement, just an aide. I find them especially helpful when a horizontal break line, such as with a BB, is more difficult to place. Often however, as in the trade we are discussing, you get a confluence of both, which is ideal.

I understand why Bob has labelled this trade as a BB - he has wrapped a box around what he is talking about, and while it is thin, it nevertheless represents built up tension within it's boundaries. If you were trading it as a SB you probably would have entered the trade a few bars prior when the high of a bar was taken out on the "second" dip.

I do see why you would think SB though as it definitely has that shape. Besides, as Bob says - it doesn't really matter what you call it. What's more important is how you trade it. Many is the time when you can label a trade in more than one way.

Hope this helps

 

[ptsnu]

Hi ptsnu,

SB can definitely be traded, even though we haven't seen many of late, much like DDs. Bob uses trendlines to help identify break points of flags in strongly trending markets (much like the one in the chart posted). They are by no means a requirement, just an aide. I find them especially helpful when a horizontal break line, such as with a BB, is more difficult to place. Often however, as in the trade we are discussing, you get a confluence of both, which is ideal.

I understand why Bob has labelled this trade as a BB - he has wrapped a box around what he is talking about, and while it is thin, it nevertheless represents built up tension within it's boundaries. If you were trading it as a SB you probably would have entered the trade a few bars prior when the high of a bar was taken out on the "second" dip.

I do see why you would think SB though as it definitely has that shape. Besides, as Bob says - it doesn't really matter what you call it. What's more important is how you trade it. Many is the time when you can label a trade in more than one way.

Hope this helps

Hey matty,
thanks alot for the thorough answer, it sure helped to clarify. I dedicated special attention to studying SB because I like the double confirmation effect of it. Also they are helpful with some ARBs.
Some trends are so strong and fast that I will prob need to draw the trdn line with fast fingers, but so far I have not needed so I will see.
Yeah, it doesnt matter how u call it, whats imprtant is that u trade it

It was a good week for me, lets see how the next develops.
Cheers,

 

[ptsnu]

Finally a good setup, but 10 minutes away from ECB President. :cheesy:
part of the game