Bob Volman Price Action Scalping

[LoSparviero]

I've tried to read through Trading in the Zone but I found it hard to get through the verbose language (he really needed an editor). I'll give it another try. Thanks


It's probably best to just skip it then if you feel you can't get a good read on the current price action. Do take note of what you think seems likely based on your current analysis and put it on your charts to review later. Just remember that whatever price does is just information. If one of the possible trades that you marked on your chart happens to work out try not to feel like you missed out. Similarly if a possible trade failed try not to feel "smart" for skipping it. Review your notes later after your session and try to evaluate those possible trades with only the bars prior to the break visible on your chart.


Feeling better today. I was watching price rather patiently when I noticed that it pulled back ~50% from the earlier bull move after the NFP release. There was lengthy clash when it finally looked like the bulls had the upper hand. That trade was ~2 pip short of target but I wasn't bothered by that at all since I felt I did the right thing in taking this trade unlike yesterday where I just wasn't sure. The setup was favorably located with good build up, and had a good tipping point.

ehm...sorry for my terrible eng...

Thx for your suggestion BLS. I dont't understand at all why u would look at the possible BB above 1.3 like a tease. I mean I don't understand how u evaluate the situation, u want more squeeze at the brkout or more battle around the round num and then on account of this evaluate a BB otherwise u'll classify the signal as a false or a tease? can u explain me this concept plz? this one (false break & tease) is one of my first enemies, and often I skip good trades because this fear of a false...

 

[BLS]

ehm...sorry for my terrible eng...

Thx for your suggestion BLS. I dont't understand at all why u would look at the possible BB above 1.3 like a tease. I mean I don't understand how u evaluate the situation, u want more squeeze at the brkout or more battle around the round num and then on account of this evaluate a BB otherwise u'll classify the signal as a false or a tease? can u explain me this concept plz? this one (false break & tease) is one of my first enemies, and often I skip good trades because this fear of a false...

I was wrong to use the word "tease" in describing why I skipped this entry. Technically there is buildup prior to the break. Sorry for the confusion.

Ideally the amount of build up I'm looking for depends on the context. If there was a strong bull move before this BB then taking this setup as it is would be fine since the chances of it continuing upward are high (trend equals trend potential). There's not much of a pattern inside the BB but that's not needed since the trend is more likely than not to continue. Meaning that two doji pre-breakout tension is enough build up given the fact that there's a trend to help it along.

There are a few factors in this situation that would make me more cautious. Price was rejected at the 1.3020 level with a small double top. It's not a big obstacle but that might mean that price may hang around the 00 for a bit longer. If there was a strong pattern like a Ww or reverse head and shoulders then that entry would be fine since that means the price is likely to move up. But I don't see any strong bottoming pattern here. For me that means I want to see more of a struggle under the signal line before a break for a better chance of double pressure, maybe a cup and handle formation or just more bars showing tension before the break.

You have to have a good read of the overall picture before you can start looking for setups because then you have a better idea of what to look for in terms of direction to trade in and how much build up you need for a successful trade. This is the best way to stay out of tease/false breaks but it's not easy to remember to do. That's why I suggested that if you're not sure what price is doing at the moment to just skip any possible trade. That's also why Bob says in his book not to focus on the moving price action or the possible development of a tradeable setup but to focus on the overall picture.

Also keep in mind that the charts I post partly reflect my own personal views/style so don't take anything I post/type as absolute. You probably know this already but I felt I should say it. Just because I didn't take a trade that you took but didn't hit target means you took a bad trade.

 

[frankie1448]

I read Bob Volman's book and thought it was pretty good. I would like to find out more about forex scalping and saw a YouTube video for a book called forex secrets successful scalping. Does anyone know anything about this book? There is suppose to be a class that goes along with it, has anyone taken that class? If anyone knows anything about this book or any other scalping books I would be interested in finding out more.

thanks
Frankie

 

[ReinLudwig]

I read Bob Volman's book and thought it was pretty good. I would like to find out more about forex scalping and saw a YouTube video for a book called forex secrets successful scalping. Does anyone know anything about this book? There is suppose to be a class that goes along with it, has anyone taken that class? If anyone knows anything about this book or any other scalping books I would be interested in finding out more.

thanks
Frankie

I found the book refreshingly readable, especially when compared to the labor it takes to work yourself through the books by Al Brooks. Bob Volman has an appealing writing style and he conveys a fair amount of insightful information.
However, the book's emphasis is on scalping, and scalping is not for beginners. In my opinion to make money as a scalper takes years of practice. You have to have a trained eye and you must be psychologically ready for the fast charts. So if you start with this book as a beginner (as I have more than a year and a half ago) it will be a challenge. But then again, your learning curve may be faster!

 

[CTBassman]

I use the free version of NinjaTrader with an MBTrading free demo account feed. My actual broker is Fastbrokers.

Hi Samich,

My account is with MBT. I noticed this post is from 2012.

My questions to you are:
1) Is it still possible to set up 70 tic using free MBT thru Ninja?
2) Technically, what are the steps to set it up?

Thanks,

Mike

 

[LoSparviero]

I was wrong to use the word "tease" in describing why I skipped this entry. Technically there is buildup prior to the break. Sorry for the confusion.

Ideally the amount of build up I'm looking for depends on the context. If there was a strong bull move before this BB then taking this setup as it is would be fine since the chances of it continuing upward are high (trend equals trend potential). There's not much of a pattern inside the BB but that's not needed since the trend is more likely than not to continue. Meaning that two doji pre-breakout tension is enough build up given the fact that there's a trend to help it along.

There are a few factors in this situation that would make me more cautious. Price was rejected at the 1.3020 level with a small double top. It's not a big obstacle but that might mean that price may hang around the 00 for a bit longer. If there was a strong pattern like a Ww or reverse head and shoulders then that entry would be fine since that means the price is likely to move up. But I don't see any strong bottoming pattern here. For me that means I want to see more of a struggle under the signal line before a break for a better chance of double pressure, maybe a cup and handle formation or just more bars showing tension before the break.

You have to have a good read of the overall picture before you can start looking for setups because then you have a better idea of what to look for in terms of direction to trade in and how much build up you need for a successful trade. This is the best way to stay out of tease/false breaks but it's not easy to remember to do. That's why I suggested that if you're not sure what price is doing at the moment to just skip any possible trade. That's also why Bob says in his book not to focus on the moving price action or the possible development of a tradeable setup but to focus on the overall picture.

Also keep in mind that the charts I post partly reflect my own personal views/style so don't take anything I post/type as absolute. You probably know this already but I felt I should say it. Just because I didn't take a trade that you took but didn't hit target means you took a bad trade.

I focus too much on the pattern definitely. I must remeber that is the overall picture the main filter for a trade and not the morph of the pattern....u'r right!

 

[Traderallen]

Hi Samich,

My account is with MBT. I noticed this post is from 2012.

My questions to you are:
1) Is it still possible to set up 70 tic using free MBT thru Ninja?
2) Technically, what are the steps to set it up?

Thanks,

Mike

I use ninja trader and MB trading for all my live Forex trades. After you open up an account with MBT go to their webpage. Download MBT desktop Pro Current Release Version 2.1.0.59 do not download the release candidate version 2.2.0.32 Go to MBT webpage click on the partner program tab find the ninja trader partner download and click the link. Once you are at ninja trader be sure to download the MB trading version of ninja trader. You do not need to have desktop Pro running start ninja trader and simulation mode then create account using your MBT login info that you would use for desktop Pro and that will get you up and running. You then need to create your chart and adjust your settings for 70 ticks. When you login to simulation mode you will have real-time tick charts from MBT then go to file, new, and click on MBT navigator that will bring up your desktop Pro trading screen where you can place you live trades or your demo account. I hope this helps and good trading to all

 

[LoSparviero]

I use ninja trader and MB trading for all my live Forex trades. After you open up an account with MBT go to their webpage. Download MBT desktop Pro Current Release Version 2.1.0.59 do not download the release candidate version 2.2.0.32 Go to MBT webpage click on the partner program tab find the ninja trader partner download and click the link. Once you are at ninja trader be sure to download the MB trading version of ninja trader. You do not need to have desktop Pro running start ninja trader and simulation mode then create account using your MBT login info that you would use for desktop Pro and that will get you up and running. You then need to create your chart and adjust your settings for 70 ticks. When you login to simulation mode you will have real-time tick charts from MBT then go to file, new, and click on MBT navigator that will bring up your desktop Pro trading screen where you can place you live trades or your demo account. I hope this helps and good trading to all

Can u have on NT 4 decimal chart?

 

[Yorkshire Terrier]

Can u have on NT 4 decimal chart?

To set charts to full pips.
Open Ninja Trader(NT) control center click on tools,
options,
data
and click the drop down menu for Quote currencies (FX) in.

I have found Bobs method is tradeable with NT but the charts don't emulate Bobs exactly i.e Prorealtime which Bob uses prints more candles than NT.

 

[BLS]

Week 14 charts added to dropbox link
https://www.dropbox.com/sh/1amxmi9af0fk6ej/otxvkh6srN/2013

 

[ReinLudwig]

Thanks, BLS!

 

[LoSparviero]

To set charts to full pips.
Open Ninja Trader(NT) control center click on tools,
options,
data
and click the drop down menu for Quote currencies (FX) in.

I have found Bobs method is tradeable with NT but the charts don't emulate Bobs exactly i.e Prorealtime which Bob uses prints more candles than NT.

U know, on FX the num of candles depend on volume tick instead of futures where the num of contract is the same for all. For example with DukascopyBank (my bro) the 70 tick of PRT seems to be the 35 tick on Jforex (Dukas platform). Anyway good news York, I love NT and maybe I can tune the tick volume chart to obtain the same resul as with PRT. I was thinking about a merge between Volman PA and a footprint bidXask approach (what I'm studying now on NT).

 

[Yorkshire Terrier]

U know, on FX the num of candles depend on volume tick instead of futures where the num of contract is the same for all. For example with DukascopyBank (my bro) the 70 tick of PRT seems to be the 35 tick on Jforex (Dukas platform). Anyway good news York, I love NT and maybe I can tune the tick volume chart to obtain the same resul as with PRT. I was thinking about a merge between Volman PA and a footprint bidXask approach (what I'm studying now on NT).

Hi LoSparviero
I and i'm sure other visitors to the thread who would like to demo Volman's method would be greatly interested in your findings.

 

[Traderallen]

U know, on FX the num of candles depend on volume tick instead of futures where the num of contract is the same for all. For example with DukascopyBank (my bro) the 70 tick of PRT seems to be the 35 tick on Jforex (Dukas platform). Anyway good news York, I love NT and maybe I can tune the tick volume chart to obtain the same resul as with PRT. I was thinking about a merge between Volman PA and a footprint bidXask approach (what I'm studying now on NT).

In my live trading room everyone of us has a different FX broker and none of our charts match do to no central control point. However it does not matter for our needs here, as BOB has said in his book " (paraphrase)adjust your chart setting to get a similar looking chart, it does not have to be 70 T your broker might be more or less"

 

[LoSparviero]

In my live trading room everyone of us has a different FX broker and none of our charts match do to no central control point. However it does not matter for our needs here, as BOB has said in his book " (paraphrase)adjust your chart setting to get a similar looking chart, it does not have to be 70 T your broker might be more or less"

yes, is what I said

this morning I start late trading and i spotted only this setup

 

[matty_dunn]

Week 14 charts added to dropbox link
https://www.dropbox.com/sh/1amxmi9af0fk6ej/otxvkh6srN/2013

Thanks for the charts Bob and BLS

 

[ReinLudwig]

Not sure if you guys placed any trades today - I did early in the morning. Noticed a RB, then waited for the pullback before going short.

 

[Testpilot]

Hi I've just finshed my second read of Bob Volman's book and I'm looking to get a small account opened up to start some small test trades. Can anyone reccomend a broker which works well with Bobs Technique and allows micro lots.

I was think of going with Dukascopy becasue of the tight spreads and micro lots but I've read a lot of negative reports on slippage. Any first hand feedback from the forum members would be appreciated.

Hopefully I'll soon be posting a few trades to share with you.

Thanks..

 

[LoSparviero]

Hi I've just finshed my second read of Bob Volman's book and I'm looking to get a small account opened up to start some small test trades. Can anyone reccomend a broker which works well with Bobs Technique and allows micro lots.

I was think of going with Dukascopy becasue of the tight spreads and micro lots but I've read a lot of negative reports on slippage. Any first hand feedback from the forum members would be appreciated.

Hopefully I'll soon be posting a few trades to share with you.

Thanks..

My broker is dukascopy bank. n problem with slippage (obviusly if u take an acceleration or a news trade u have to take account of slippage) other good bro in my opinion are mtf (IB of LMAX exchange) or pepperstone edge account.

Some doubts about the first trade I taked this morning...how u act here guys? when u are near a round number (say 5 pips) and u have a setup?
I would skip all these trade for some time and take only trades like 1.x0-1.x2; 1.x2-1.x4; 1.x4-1.x5; 1.x5_1.x6; 1.x6-1.x8; 1.x8-1.(x+1)0 and do some maths to make a comparison in terms of %profit and r:r

 

[Testpilot]

My broker is dukascopy bank. n problem with slippage (obviusly if u take an acceleration or a news trade u have to take account of slippage) other good bro in my opinion are mtf (IB of LMAX exchange) or pepperstone edge account.

Some doubts about the first trade I taked this morning...how u act here guys? when u are near a round number (say 5 pips) and u have a setup?
I would skip all these trade for some time and take only trades like 1.x0-1.x2; 1.x2-1.x4; 1.x4-1.x5; 1.x5_1.x6; 1.x6-1.x8; 1.x8-1.(x+1)0 and do some maths to make a comparison in terms of %profit and r:r

Thanks for the feedback on Dukascopy, I'll also take a look at MTF & Pepperstone.