I haven't finished the entire course yet so forgive me if this is addressed there, but I have a question regarding the generally accepted 2k tick interval. I monitor the ATR somewhat as an indicator of volume and risk. ~2 ATR seems to be the sweet spot. I've noticed that overall volume seems to have picked up to the point where 2k routinely reads sub-2 ATR now. I've been experimenting with a 2500 tick chart and it seems to be around where 2k was before. I don't know yet if it's more or less tradeable, but was wondering if anyone had any advice on this.
Harold
2k Interval
Re: 2k Interval
It is a fair question, and one that will come up a variety of times throughout a year. Why? Because the market goes through a variety of cycles within a year, that someone who simply trades for 1-2 weeks will never see. At issue is whether one wants to "update things" with high frequency, and the stability of changing through "the changes" as they might say in music.
ATR says very little about volume. It is simply a measure of "volatility" of price over the bars measured [time,ticks,volume] . Volume is not a reliable indicator. Note the ATR can play a major part in targets and profit taking though.
There are a "suite of variables" that one needs to become comfortable with to understand how they flex and change over time. You'll note that in many of the advertisements for learning Price Action, it says it is a skill which can apply to any market, and this is true.
5 minute timeframe? Yes.
2 minute timeframe? Yes.
1 minute timeframe? [yes but you better be very good at discerning edge from volatility]
10 range bar? Yes
4k tick chart? Well of course!
NQ? Certainly
RTY? Yep
ZB, ZN, UB? - - - Why of course!!!
Here is the issue though. . . . understanding how channels & ema, and the support and resistance aspects "dance" together. Not individually, but as a cohesive whole. . . . That is the issue. It isn't a single variable but the interplay, and being able to update what "an individual sees" vs a reliable indicator [Mack as an example] to help tune our perceptions. That is the key -> having something reliable with an edge to be able to learn and adjust "our vision" against.
Changing a variable without a good reference [or how the interplay of variables work] slows down "the learning process". The skillset is more important than "winning on any particular trade".
Hopefully helpful and good trades to you!
ATR says very little about volume. It is simply a measure of "volatility" of price over the bars measured [time,ticks,volume] . Volume is not a reliable indicator. Note the ATR can play a major part in targets and profit taking though.
There are a "suite of variables" that one needs to become comfortable with to understand how they flex and change over time. You'll note that in many of the advertisements for learning Price Action, it says it is a skill which can apply to any market, and this is true.
5 minute timeframe? Yes.
2 minute timeframe? Yes.
1 minute timeframe? [yes but you better be very good at discerning edge from volatility]
10 range bar? Yes
4k tick chart? Well of course!
NQ? Certainly
RTY? Yep
ZB, ZN, UB? - - - Why of course!!!
Here is the issue though. . . . understanding how channels & ema, and the support and resistance aspects "dance" together. Not individually, but as a cohesive whole. . . . That is the issue. It isn't a single variable but the interplay, and being able to update what "an individual sees" vs a reliable indicator [Mack as an example] to help tune our perceptions. That is the key -> having something reliable with an edge to be able to learn and adjust "our vision" against.
Changing a variable without a good reference [or how the interplay of variables work] slows down "the learning process". The skillset is more important than "winning on any particular trade".
Hopefully helpful and good trades to you!
Re: 2k Interval
Much appreciated.
Thank you for the insight on ATR.
So If I'm understanding it correctly, it would behoove a novice such as myself to not just pick a chart interval and not change it - at least during the learning/developing process, but that the 2k chart is deemed most tradeable under this system (using Mack as the standard bearer)?
Thank you for the insight on ATR.
So If I'm understanding it correctly, it would behoove a novice such as myself to not just pick a chart interval and not change it - at least during the learning/developing process, but that the 2k chart is deemed most tradeable under this system (using Mack as the standard bearer)?
Re: 2k Interval
I use the 2k on the ES.
While everyone may have a different perspective, trading isn't like becoming a doctor. To become a doctor, the coursework and knowledge is openly available as well as the "tests". Want to pass -> you gotta "know the books" inside and out, and under pressure. Also, work through the cadaver class, etc (which I imagine isn't too pleasant).
How does the public approach trading - - - ? I'll just pick up this book and walahhhh! Magic. . . . Now, most will not laugh at this point because (if they have tried it). . . what is the test? Yeah - the market which has no bias. Oops. That book didn't work. . . It must be in another book. . . or course. . . . or . . .
There are fundamentals that must be understood, independent of what market one finally ends up with. What are those fundamentals? That is what the course attempts to outline - - - some things many may not even have considered. There were a few points I didn't realize until year 4+ (yeah and working nonstop on it).
In the end an individual needs to match their personality to a market or system. Wanting to "change" something without understanding why certain things are set can lead to confusion. Without strong references of good perspective and accurate solutions, even most machines fail in training, and machines can beat the best humans in chess (note chess has a good reference to base decisions - who wins in the end). I give you an example. . . Al Brooks. If you read his books what moving average does he use on the 5m chart [20 ema]?. I think many were surprised to learn when he uses a 2m chart he overlays a 10ema - - -WHAT!???!? How can this be? . . . Is the public betrayed? Or how about when Mack has a sample video showing a limit order buy - - - What?!!!! How is that possible since all trades should be on stop orders!?? When the skillset is well understood, options become more apparent. Want to buy a strong bear bar - - - -possible. What is the context where this actually may make sense? Ahhhh! And afterwards, can one do that reliably?!!!! Aha! (maybe y, maybe n).
One might be 6'5" and can slam dunk a basketball standing next to the rim. That may not be translatable to a real game of basketball. One needs to have the basics down first, which includes dribbling, moving with that ball, potentially passing, etc.
Actually working through all the quizzes, many are surprised. Through the course you may find your vision of the market changes a bit.
While everyone may have a different perspective, trading isn't like becoming a doctor. To become a doctor, the coursework and knowledge is openly available as well as the "tests". Want to pass -> you gotta "know the books" inside and out, and under pressure. Also, work through the cadaver class, etc (which I imagine isn't too pleasant).
How does the public approach trading - - - ? I'll just pick up this book and walahhhh! Magic. . . . Now, most will not laugh at this point because (if they have tried it). . . what is the test? Yeah - the market which has no bias. Oops. That book didn't work. . . It must be in another book. . . or course. . . . or . . .
There are fundamentals that must be understood, independent of what market one finally ends up with. What are those fundamentals? That is what the course attempts to outline - - - some things many may not even have considered. There were a few points I didn't realize until year 4+ (yeah and working nonstop on it).
In the end an individual needs to match their personality to a market or system. Wanting to "change" something without understanding why certain things are set can lead to confusion. Without strong references of good perspective and accurate solutions, even most machines fail in training, and machines can beat the best humans in chess (note chess has a good reference to base decisions - who wins in the end). I give you an example. . . Al Brooks. If you read his books what moving average does he use on the 5m chart [20 ema]?. I think many were surprised to learn when he uses a 2m chart he overlays a 10ema - - -WHAT!???!? How can this be? . . . Is the public betrayed? Or how about when Mack has a sample video showing a limit order buy - - - What?!!!! How is that possible since all trades should be on stop orders!?? When the skillset is well understood, options become more apparent. Want to buy a strong bear bar - - - -possible. What is the context where this actually may make sense? Ahhhh! And afterwards, can one do that reliably?!!!! Aha! (maybe y, maybe n).
One might be 6'5" and can slam dunk a basketball standing next to the rim. That may not be translatable to a real game of basketball. One needs to have the basics down first, which includes dribbling, moving with that ball, potentially passing, etc.
Actually working through all the quizzes, many are surprised. Through the course you may find your vision of the market changes a bit.
Re: 2k Interval
Thank you for engaging my brain, once again, Eric. Very helpful indeed.
Harold
Harold