Tag Archives: volume Profile

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Daily Meeting for Tuesday July 9

Posted on by Conor Browne

Strategy Adjustments and Market Dynamics in Volatile Conditions

• Market Movement Analysis: Reviewed market behavior in response to speeches by Powell and Yellen, noting significant fluctuations and the impact of economic reports on gold, silver, and the dollar.

• Volume Profile Adjustments: Demonstrated techniques for fine-tuning volume profile lines, especially in the context of new all-time highs, and discussed logical entry points based on these adjustments.

• Trade Execution and Profit Taking: Shared participant experiences with trades, emphasizing strategies for taking profits early in low volatility environments and re-entering trades during market fluctuations.

• Political Impact Considerations: Explored the potential influence of political events and statements on market behavior, particularly focusing on the impact of Federal Reserve decisions and political stability.

• Tool Utilization and Improvements: Discussed the use of TradingView for analysis and Thinkorswim for execution, highlighting the integration of new tools like the Zero DTE Oracle for improved decision-making.

• Future Topics and Education: Planned future sessions to delve into the differences between index and futures options trading, and encouraged participants to suggest additional topics for deeper exploration.

Summary

In this daily meeting, Ernie and the participants analyzed the market’s response to speeches by Powell and Yellen, noting the significant fluctuations in gold, silver, and the dollar due to economic reports. Ernie demonstrated techniques for adjusting volume profile lines to identify logical entry points, particularly in the context of new all-time highs.

Participants shared their trading experiences, focusing on strategies for taking profits early in low volatility environments and re-entering trades during market fluctuations. The discussion also touched on the potential impact of political events and statements on market behavior, with Ernie highlighting the influence of Federal Reserve decisions and political stability.

The meeting included a detailed explanation of using TradingView for analysis and Thinkorswim for execution, with an emphasis on integrating new tools like the Zero DTE Oracle to enhance trading efficiency. Ernie encouraged participants to suggest topics for future sessions, with plans to cover the differences between index and futures options trading in upcoming meetings.

Overall, the session emphasized the importance of adapting trading strategies to market conditions, leveraging advanced tools for analysis, and staying informed about political and economic factors that can influence market behavior.

Archive, Retrospective

Sunday Retrospective for Sunday July 7

Posted on by Conor Browne

Evaluating Market Structures and Volume Profile Mastery

• Volume Profile Techniques: Emphasized the importance of marking up volume profile lines and understanding their implications for support and resistance levels in market trading.

• Trade Execution Strategies: Discussed the procedures for using TradingView for analysis and Thinkorswim for trade execution, ensuring efficient workflow and minimizing unnecessary work.

• Market Timing and Volatility: Highlighted the significance of timing in market entry, especially between 9:30 AM and 11:00 AM when market volatility is typically higher.

• Use of Indicators: Detailed the use of horizontal and vertical lines in volume profile analysis to mark high volume nodes and low volume wells, helping traders identify key market structures.

• Routine and Habit Formation: Stressed the need for developing a daily routine for market analysis, including pre-market checks, economic report reviews, and continuous practice of volume profile analysis.

• Tool Utilization and Improvements: Discussed using TradingView’s real-time data feed for accurate analysis and the potential integration of new tools to enhance trading efficiency.

Summary

In the Sunday retrospective meeting, Ernie focused on the critical role of volume profile analysis in trading, demonstrating how to mark up volume profile lines to identify key support and resistance levels. He emphasized the importance of using TradingView for analysis and Thinkorswim for executing trades, ensuring an efficient workflow without duplicating efforts.

Ernie discussed the significance of timing in market entry, particularly between 9:30 AM and 11:00 AM when market volatility is typically higher. He provided detailed guidance on using horizontal and vertical lines in volume profile analysis to mark high volume nodes and low volume wells, which are crucial for understanding market structure.

The meeting also covered the necessity of developing a daily routine for market analysis, including pre-market checks, reviewing economic reports, and continuous practice of volume profile analysis. Ernie highlighted the importance of consistency and habit formation in achieving long-term trading success.

Additionally, participants discussed the potential for new tools and enhancements to improve trading efficiency, with Ernie stressing the importance of staying updated with real-time data feeds and integrating useful tools like TradingView for comprehensive market analysis. The session concluded with a reminder to log and journal all trading activities to evaluate performance and make informed adjustments.

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Daily Meeting for Friday July 5

Posted on by Conor Browne

Post-Holiday Trading Insights and Strategy Adjustments

• Market Reflection: Discussed the mixed signals from economic reports and the implications of government versus non-government data, highlighting the challenges in interpreting market movements.

• Volume Profile and Volatility: Reemphasized the importance of volume profile and volatility in trading strategies, including techniques for measuring changes in the VIX and adjusting trading plans accordingly.

• Trade Management and Rolling: Addressed questions about rolling options contracts, clarifying that rolling essentially involves closing one trade and opening a new one, and discussed when it might be appropriate or not.

• Trading Fundamentals and Mental Toughness: Stressed the importance of mastering fundamental trading skills and developing mental toughness to make consistent, informed decisions.

• Future Trading Education: Planned future sessions to cover basics of futures trading, addressing participants’ fears and providing comprehensive understanding of different futures products and their applications.

• Consistency and Habit Formation: Highlighted the need for consistency in trading practices and the development of effective habits to achieve long-term success.

Summary

In today’s meeting, Ernie and the participants reflected on the post-holiday market conditions, emphasizing the challenges posed by conflicting economic reports from government and non-government sources. Ernie underscored the importance of using volume profile and volatility measures to inform trading strategies, explaining how to assess changes in the VIX and adjust accordingly.

The session included a detailed discussion on rolling options contracts, with Ernie clarifying that rolling involves closing an existing position and opening a new one. He advised against using rolling as a crutch to avoid taking losses, advocating instead for evaluating each new trade on its own merits.

Ernie also stressed the importance of mastering fundamental trading skills and developing the mental toughness necessary to stick to a consistent trading plan. He emphasized that success in trading requires a deep understanding of the basics and the ability to make tough decisions based on sound analysis.

Participants expressed interest in learning more about futures trading, leading to a plan for future sessions to cover the fundamentals of trading different futures products. Ernie concluded the meeting by highlighting the importance of consistency and the development of effective habits, drawing parallels to high-performance sports and other disciplines where mastery of the basics is key to long-term success.

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Daily Meeting for Wednesday July 3

Posted on by Conor Browne

Pre-Holiday Trading Strategies and Market Reflections

• Pre-Holiday Market Closing: Discussion on the early market closure at 1 PM Eastern due to the July 4th holiday, impacting trading decisions and strategies.

• Trading Performance: Ernie shared his recent trading successes, including daily profits and overall growth of a $10,000 account from $7,000 over the past month.

• Trade Execution and Adjustments: Talked about taking profits early, managing trades in low volatility, and considerations for entering additional trades during significant market moves.

• Economic Report Impacts: Reviewed the effects of recent economic reports, such as PMI, ISM, and ADP employment data, on market performance and trading strategies.

• Volume Profile Utilization: Emphasized the importance of using LVNs (Low Volume Nodes) and other structural elements in trading decisions, particularly in low volatility environments.

• Broader Economic and Political Context: Discussed the potential impacts of political and economic conditions on the market, including AI advancements and Supreme Court decisions.

Summary

In the daily meeting held on July 3rd, Ernie and the participants discussed the implications of the early market closure at 1 PM Eastern due to the upcoming July 4th holiday. Ernie shared his recent trading successes, noting a consistent increase in his $10,000 account, which had grown from $7,000 over the past month. He discussed his strategy of taking profits early in the day, especially in low volatility environments, and highlighted the importance of using LVNs and other structural elements for making trading decisions.

The meeting also reviewed the impacts of recent economic reports, including PMI, ISM, and ADP employment data, on market performance. Ernie and the participants discussed their trading strategies in response to these reports and the overall market conditions. Additionally, there was a broader discussion on the potential impacts of political and economic conditions on the market, including AI advancements and recent Supreme Court decisions.

Ernie emphasized the need for careful trade management, especially when entering additional trades during significant market moves. The session concluded with participants sharing their plans for the holiday and reflecting on the importance of understanding broader economic and political contexts in trading.

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Daily Meeting for Monday July 1

Posted on by Conor Browne

Navigating Market Dynamics and Contract Transitions

• Market Uncertainty: Discussed the current market indecision between bullish and bearish trends, highlighting the potential double top pattern that needs confirmation.

• Economic Impact Analysis: Explored the effects of recent economic reports, particularly PMI and ISM manufacturing data, on market movements and how bad news might be perceived as good news due to potential rate cuts.

• Volume Profile and Contract Transition: Addressed the challenges of analyzing volume profile data during futures contract rollovers and strategies for handling gaps in data.

• Technical Difficulties and Trade Execution: Provided guidance on executing complex trades, such as the box trade, particularly when using mobile platforms.

• New Trading Tools and Indicators: Introduced and evaluated new indicators on TradingView, including the volume footprint and time price opportunity charts, discussing their potential utility.

• Volume Profile Mastery: Emphasized the importance of continuous study and application of volume profile analysis to predict market behavior and improve trading strategies.

Summary

Ernie led a discussion on the prevailing market uncertainty, particularly the indecision between bullish and bearish trends and the potential double top pattern awaiting confirmation. Participants examined the impacts of recent economic reports, noting that worse-than-expected PMI and ISM manufacturing data might paradoxically lead to market optimism due to anticipated rate cuts.

The meeting also covered technical challenges related to analyzing volume profile data during futures contract rollovers, with strategies provided to handle gaps in data. Ernie offered detailed guidance on executing complex trades like the box trade, especially when using mobile devices, addressing common difficulties.

Additionally, new TradingView indicators such as volume footprint and time price opportunity charts were introduced and evaluated. While these tools offer detailed information, their practical utility remains uncertain. Ernie reinforced the value of mastering volume profile analysis, encouraging continuous study and application to enhance predictive accuracy and trading efficiency. The session concluded with an open forum for questions, ensuring participants were well-prepared for the shortened trading week ahead.

Archive, Retrospective

Sunday Retrospective for June 30

Posted on by Conor Browne

Emphasizing Volume Profile and Strategic Planning

• Volume Profile Implementation: Reaffirmed the importance of volume profile analysis as a leading indicator and discussed its role in identifying market structure and liquidity areas.

• Tool Improvements: Participants suggested improvements for the profit taker and simulator tools, to be discussed in future meetings.

• Personal Insights and Achievements: Shared personal anecdotes, including Ernie’s experience at a dog show and a participant’s real-life trading success using the volume profile.

• Strategic Visualization: Highlighted the role of visualization in preparing for trading, drawing parallels with Olympic training techniques for enhanced performance.

• Market Structure Analysis: Demonstrated a step-by-step process for analyzing market structure using volume profile, with an emphasis on identifying high and low liquidity areas.

• Preparation for Trading Week: Encouraged participants to plan their trades in advance, using volume profile insights to identify potential entry points and create scenarios for market movements.

Summary

In the Sunday retrospective meeting, Ernie reiterated the importance of volume profile analysis in trading, describing it as a leading indicator that provides real-time insights into market structure and liquidity. Participants discussed potential improvements for the profit taker and simulator tools, with suggestions to be elaborated in future sessions. Ernie shared personal stories, including a dog show experience, and emphasized the value of visualization in strategic preparation, likening it to the training methods of Olympic athletes. The meeting included a detailed demonstration of volume profile analysis, highlighting how to identify significant market structures and liquidity areas. Ernie encouraged traders to prepare for the upcoming week by planning their trades in advance, leveraging volume profile insights to identify potential entry points and develop various market scenarios. The session underscored the cumulative value of small, consistent profits and the importance of disciplined, strategic trading practices.

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Daily Meeting for Friday June 28

Posted on by Conor Browne

Advanced Volume Profile Analysis and Market Strategy

• Market Opening Patterns: Emphasized recurring pattern of the market opening with a sharp increase followed by a decline, discussing how this can be used for quick profit-taking in low volatility, high gamma environments.

• Volume Profile Exploration: Detailed introduction to volume profile analysis from scratch, including its advantages over traditional candlestick methods and how it provides a more comprehensive market understanding.

• Technical Insights on Futures Contracts: Explored practical questions about futures contracts, specifically the costs associated with rolling over contracts like wheat or crude oil, and the implications for ongoing trading strategies.

• Participant Feedback and Learning: Highlighted Ernie’s appreciation for participants’ feedback and his realization of the need to consistently emphasize the importance of volume profile to enhance learning and adaptation.

• Integration of Volume Profile in Trading Tools: Discussed the integration of volume profile into trading tools and the future development of features to enhance trader interaction with market data.

• Volume Profile and Market Movement Prediction: Explored how volume profile could potentially predict market movements by creating a visual map of market structure akin to a topographical map, influencing trade decisions.

Summary

This meeting, focused extensively on the benefits and applications of volume profile in trading, contrasting it with traditional methods like candlestick charts and moving averages. Ernie provided a live demonstration, explaining how volume profile offers a clearer view of the market by illustrating volumes at different price levels, which is crucial for making informed trading decisions. He also discussed the mechanics of futures contracts, addressing specific participant queries about contract rollovers and their costs. The session was interactive, with Ernie emphasizing the educational aspect of these meetings, encouraging ongoing dialogue, and stressing the importance of adapting trading strategies based on volume profile insights. The discussion also touched on future enhancements to trading tools that integrate volume profile, aiming to provide a more intuitive and comprehensive trading experience.

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Daily Meeting for Thursday June 27

Posted on by Conor Browne

Strategic Discussion on Market Volatility and Trading Adjustments

• Market Volatility Concerns: Discussed the challenges of trading in a market experiencing low volatility, affecting the width and profitability of trades like the ‘Batman’ strategy.

• Trade Adjustments and Decisions: Explored personal trade adjustments due to market conditions, including the choice of narrower trade widths to save costs, resulting in mixed outcomes for participants.

• Debate Impact on Markets: Anticipated the potential impact of a political debate on market behavior, with special attention to logistical disruptions in Atlanta due to the debate.

• Low Volatility Trading Strategies: Highlighted the importance of making quick, small-profit trades in a low volatility environment, emphasizing risk reduction and fast decision-making.

• Volume Profile Importance: Stressed the critical role of volume profile analysis in trading, especially for understanding market structures and levels respected by the market.

• Open Forum Feedback: Conducted an open forum for participants to share their experiences and adjustments in strategy based on recent market behaviors and Ernie’s teachings.

Summary

The daily meeting led by Ernie focused on the nuances of navigating a low volatility market, which has been challenging for traditional trading strategies. Participants shared their experiences with adjusting trade sizes and strategies, such as the ‘Batman’ setup, to adapt to the sluggish market movements. Ernie emphasized the importance of recognizing small profit opportunities quickly as a viable strategy during these periods. The discussion also touched on the broader impacts of external events like political debates on market conditions. A significant part of the meeting delved into the importance of volume profile analysis in trading, illustrating how this tool helps in identifying key market levels and structures. Feedback from participants revealed a growing understanding and appreciation of this analysis technique, which many acknowledged had improved their trading outcomes. The session was also a platform for traders to voice their observations and learn from each other, fostering a collaborative environment for strategy refinement and personal trading growth.

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Daily Meeting for Friday June 21

Posted on by Conor Browne

Exploring Market Timing and Entry Strategies

• Contract Expirations: Discussion about the last day for trading the June contract for E mini S&P futures, emphasizing the transition to the September contract.

• Volume Profile Strategy: Ernie elaborates on using volume profile as a key strategy for determining entry points in trading, focusing on low volume nodes for potential trades.

• Butterfly Trade Execution: Discussion on the proper execution and removal of butterfly trades to manage risk, particularly concerning trades that inadvertently split into separate legs.

• Visual Trading Aids: Ernie plans to use markup tools to visually represent trading strategies and volume profiles during live sessions.

• Trading Platform Nuances: Conversation about the specifics of executing and managing trades on different trading platforms, highlighting the importance of understanding platform functionalities.

• Learning from Mistakes: Emphasis on the importance of logging and learning from trading mistakes to improve strategy and decision-making processes.

Summary

In this meeting, Ernie focused on the technical aspects of trading as the June futures contract expired, requiring a switch to the September contract. He provided a detailed explanation on using volume profiles to inform trading decisions, particularly emphasizing the strategic placement of trades around low volume nodes for optimal risk-reward outcomes. The session also covered platform-specific issues related to the display and management of butterfly trades, providing practical advice on how to handle trades that appear as separate legs. Additionally, Ernie used a real-time example to demonstrate how to identify and utilize significant market levels determined by volume analysis, enhancing the traders’ ability to make informed decisions based on structural market insights.

Archive, Zoom Daily

Daily Meeting for Thursday June 20

Posted on by Conor Browne

Trading Mistakes and Optimizations

• Ernie’s Trading Experience: Ernie shared a recent trading experience where he encountered an unexpected double pullback, underscoring the unpredictable nature of market movements.

• Lesson on Market Timing: Discussed the importance of not breaking trading discipline, emphasizing the consequences of premature market entry.

• Trading Mistakes and Corrections: Highlighted a specific instance of a trading error related to the misalignment of strikes and the importance of having a checklist to avoid such mistakes.

• Observations on Market Movements: Analysis of the S&P 500’s movements within specific price channels and the implications for future market directions.

• Utilizing Volume Profiles: Detailed discussion on the application of volume profiles in trading, particularly for setting up trades based on market structure and liquidity zones.

• Future Trading Plans: Ernie outlined plans to further explore and integrate volume profile techniques into trading strategies, aiming to improve entry and exit decision-making.

Summary

This meeting was a comprehensive overview of recent market behaviors and personal trading insights from Ernie. He discussed his experience with a surprising market double pullback, emphasizing the lessons learned about maintaining discipline in trading practices. Ernie also recounted a specific trading error, highlighting the importance of double-checking trade setups to ensure all parameters align correctly before execution. The session included a detailed examination of the S&P 500’s behavior within established price channels, providing forecasts about potential market movements and the importance of breaking session highs for further upward momentum. Moreover, Ernie elaborated on the strategic use of volume profiles in trading, noting its utility in better understanding market structure and planning trades. Looking ahead, he expressed an intent to deepen the application of volume profiles in his trading strategy, aiming to enhance both entry setups and profit-taking techniques.