Thursday, April 4, 2019

Market Review On Gold

It's been a while since the last post here so here I thought o post quickly review about my gold trade from yesterday. Firstly we will take a glance on the weekly chart to determine the current structure and then going through the lower periods to identify the trade location. Looking at the weekly chart we can observe a current balanced behavior in which the market is trading at the lower extreme. Additionally we can see a kind of head and shoulders pattern which will be more visible at the daily chart. Please note that the lower time frame such the 60 minute charts are back-adjusted.

With this in mind we can jump to the daily chart including yearly VWAP. We can observe that the market opened inside of the previous year's value and additionally trades inside of the value area form 2017 which seem to be accepted as extremes of the balance. Looking at the current VWAP's balanced slope we can see that we trading outside of the developing value with resistance at the DVAL (-1 Standard Deviation or Developing Value Area Low) and support from the 2017 VAL which explains the current rotational behavior of the market.

With this information we can directly go the monthly and weekly VWAP. The market is trading rotational below the previous month's value and found resistance the developing +1SD (VAH) level and the previous month's VAL close level which is obviously confluent with this week's developing VAH. With yesterday's swing failure it made perfect sense to short the market to the lower developing extreme as we tend to trade from extreme to extreme in a balanced market behavior.

Weekly VWAP

These levels were confluent with a previous VAH level on the daily VWAP perspective. Actually, today same thing. The market opened inside of today's value and testing the extreme with a rotational VAH short idea.

Including levels of confluence from the weekly and daily volume profiles.

So much as a warm-up of the art of posting.

Monday, July 10, 2017

How to create and design your own Sierra Chart DoM

I will repost the video here about how to create and design your own Sierra Chart DoM. Sierra Chart is a highly customizable platform but you could have a hard time with the various options as a beginner user. With that said, I put together this little video which will hopefully of some help for you.

On the insights blog you read a written article about the options to design your DoM.

New DOM and Chart Templates (Sierra Chart)

You can download my chartbooks as well as the new DOM from the chart templates section on our website.

Here a little video about the DOM:

Euro Bund's Supportive Balance

The mentioned balance area on the plain chart seems to support Bund currently. The market opened inside of Friday's value and broke out to the north to test the previous VWAP close level and possibly a previous VAH level.

I'm on the sidelines for now.

Gap Up Open In FDAX

FDAX opened with a gap up today. Friday was an inside day and as mentioned I was waiting for responsive seller or an opportunity to short the market with a expectation to test Friday's range. There were two particular levels which got me into short trades: a previous VAH level and the weekly VAH level. Unfortunately the first one got me a stop out but the second trade played out nicely.

Here the VAH level from the weekly volume profile:

Actually, I thought the first trade would work out. We can see the nice reaction and the turn. Seems the market came back for more liquidity to move to my actual target zone afterwards. In the end my decision to re-enter the trade was profitable this time.

Sunday, July 9, 2017

FDAX Daily Volume Profile

Most interesting in FDAX are the dialy volume profiles currently. Firstly, we can see a inside day which means we can look for potential responsive sellers above the high and responsive buyers below the low. Secondly, we have a ‘b’ shaped profile. My bullish scenarios will kick in if the market opens above the value. VAH and VPOC are areas of interest for sure.

Read the full article here >>

Euro Bund Market Observations

Repost from Insights blog >>

The Euro Bund is one-time-framing lower since several days. Potential supportive balance area could stop this bearish behavior in my opinion. I will be cautious for the next week.

Looking at the weekly profile we can identify a double distribution profile. VPOC of the two distributions are areas of interest for sure. All depends on the open again. Open below range and I would expect a test of the lower distribution to sell off in the end. Open in range and I would expect the market to rotate between the VPOC.

Moving forward to the daily volume profiles, we can see Friday’s profile as a simple

Read more here >>