Tag Archives: volume Profile

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Daily Meeting for Friday November 17

Posted on by Conor Browne

Navigating Market Volatility

• Volume Profile Review: Coach Ernie recapped the previous day’s comprehensive discussion on volume profile and its application in market structural analysis, directing members to archived resources for further review.

• Strategic Trading Decision: Ernie shared his decision to execute a bearish trade based on his assessment of market conditions, despite it initially being a mistaken execution of a broken-wing butterfly instead of a symmetrical one.

• Adaptive Risk Management: The meeting showcased Ernie’s adaptability in trading, where he turned a trading mistake into an opportunity by strategically placing another trade to balance the risk, emphasizing the importance of dynamic risk management.

• Member Engagement and Strategy Clarification: Members actively engaged with Ernie, asking questions about specific trading scenarios, leading to discussions about the interpretation of profit and loss in real-time trading scenarios.

• Trading Psychology and Consistency: Ernie stressed the importance of patience, consistency, and the psychological aspects of trading. He encouraged members to focus on long-term strategies rather than short-term market movements.

• Reflective Concluding Remarks: The session concluded with Ernie sharing personal reflections on his trading journey, emphasizing the inevitability of market fluctuations and the significance of maintaining a disciplined approach to trading.

Summary

Coach Ernie led an informative and interactive meeting focused on practical trading strategies and market analysis. He began by revisiting the previous day’s topic on volume profile analysis, guiding members on where to find these resources. Ernie openly discussed a bearish trade he placed, initially a mistake, and how he strategically managed it by adding another trade to create a balanced risk profile. This real-time example served as a practical lesson in adapting to market conditions and managing risks effectively.

Throughout the meeting, Ernie engaged with members, answering specific questions about trade setups and strategies, which led to insightful discussions on trading psychology and the importance of maintaining a consistent approach. Ernie’s sharing of his personal trading experiences, particularly his emphasis on patience and discipline, provided members with valuable insights into navigating market volatility and the importance of long-term strategy over short-term gains.

The session ended with Ernie encouraging members to stay disciplined and consistent, reflecting on the natural ups and downs of the trading journey. He reiterated the importance of staying focused on the overarching goal of trading success, emphasizing the need for peace and steadiness in the face of market uncertainties. The meeting underscored the value of community learning and shared experiences in developing as a trader.

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Daily Meeting for Wednesday November 15

Posted on by Conor Browne

Strategic Trading Insights: Navigating Myths, Markets, and Volume Profiles

• Discussion on the ‘Jerry trade,’ a pre-market closing strategy to leverage potential overnight market movements.

• Techniques for managing trades in ThinkOrSwim, including ‘box trades’ and the use of groupings to organize and control trade entries and exits.

• Insights into futures contracts and the implications of trading hours, contract expirations, contango, and backwardation.

• Examination of the psychological and actual impacts of market gaps, challenging the validity of gap trading strategies.

• Comprehensive guide to setting up volume profiles in ThinkOrSwim, from granularity to eliminating arbitrary constructs like HVNs and LVNs.

• Exploration of market memory and structural analysis, leveraging volume changes for long-term trade significance.

Summary

The Zero DTE daily meeting delved into multiple facets of trading strategies and market analysis. Ernie, a seasoned trader, shared his perspective on the ‘Jerry trade,’ highlighting the strategy’s simplicity and effectiveness in capturing market movements. The discussion also covered practical trade management on the ThinkOrSwim platform, focusing on the benefits of using ‘box trades’ and organizing trades into groups for better oversight.

Ernie provided a nuanced understanding of futures contracts, discussing the nuances of trading hours and the dynamics of contract expirations, contango, and backwardation, which can significantly affect trading strategies. A significant portion of the meeting addressed the misconceptions about market gaps, with Ernie challenging their perceived importance in trading decisions.

The session concluded with an in-depth tutorial on setting up and interpreting volume profiles in ThinkOrSwim. Ernie emphasized the importance of distinguishing between arbitrary constructs, such as HVNs and LVNs, and the genuine market memory reflected in volume changes. He guided members on how to conduct a structural analysis that captures long-term trade significance, rooted in real market behaviors rather than common myths.

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Daily Meeting for Tuesday November 14

Posted on by Conor Browne

Mastering Volatile Markets: Trade Adjustments and Volume Profile Insights

• Market Movement and Strategy Response: Discussion on how the market hit a significant volume node and strategies that were employed the night before, leading to an unexpected move and losses.

• Trading Adjustments and Expectations: Conversations about adjusting strategies after initial trades, including the decision-making process behind adding new positions or preserving capital.

• Cooking Interlude: A lighthearted diversion where grilling a steak becomes an analogy for patience and timing in trading.

• Learning from Losses: Emphasis on the importance of logging and journaling trades, especially after quick losses, to improve future strategy.

• Volume Profile Analysis: Detailed explanation of using volume profile for setting up trades and the significance of nodes and anti-nodes.

• Q&A on Market Mechanics and Strategy: Open forum discussing everything from the impact of economic reports on market behavior to the nuances of setting stop losses and take-profits in volatile conditions.

Summary

In today’s session, the unexpected market behavior and its alignment with significant volume nodes were a focal point. Participants shared their experiences with overnight trades that resulted in losses due to surprising market moves, highlighting the unpredictable nature of trading. The group discussed the merits and timing of entering new trades post-initial losses, emphasizing sticking to daily risk limits. An unexpected yet relatable moment occurred as the discussion briefly turned to grilling steaks, serving as a metaphor for the need for patience and attention in trading. The conversation also covered the importance of volume profile analysis in identifying key market levels and the value of rigorous trade logging. Questions raised by the members prompted a deep dive into how different economic reports influence the market and a clarification on the use of stop losses in the context of profit preservation. The session closed with reminders of the importance of documenting trades and learning from each day.

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Daily Meeting Monday November 13

Posted on by Conor Browne

Trading Strategies and Kitchen Multitasking: Zero DTE Daily Digest

• Market response to CPI data causes surprising moves, challenging traders’ overnight positions.

• The use of ‘Batman’ trade setups is highlighted, emphasizing caution against overtrading after a loss.

• Economic reports are discussed in terms of their varying impacts on market dynamics, with CPI data causing significant movements.

• The illusion of gaps in trading is explored, clarifying misconceptions about market behavior post-CPI.

• Profit-taking strategies and the use of stop losses are debated, with emphasis on their proper context within different trading scenarios.

• Volume profile analysis is simplified, focusing on the significance of abrupt volume changes for setting up trades.

Summary

The daily meeting opened with a casual discussion about the market’s unexpected surge in response to CPI data, which led to the presenter’s trades being surpassed. As the host expertly juggled grilling a steak, the conversation shifted to trading strategies, where the ‘Batman’ setup was dissected, and the day’s trading boundaries were reiterated. Participants shared their wins and losses, with some managing to secure profits by adjusting to the market’s quick pace. The discussion also ventured into the territory of economic reports and their varied impacts, the reality versus perception of gaps in the market, and the role of stop losses and profit-taking in managing trades. Volume profile analysis was demystified, focusing on the importance of significant volume changes. The session wrapped up with an encouragement to meticulously log and journal trades for continuous learning, followed by some lighthearted moments and the host’s culinary success.

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Daily Meeting for Thursday November 9

Posted on by ernie

Independent Strategy and Real-Time Decision-Making

• Traders are discouraged from copying strategies without understanding; independent decision-making is key.

• Utilization of volume profile for strategic market structure analysis and node identification.

• The use of mental trailing stops is discussed, with an emphasis on dynamic profit management.

• Importance of pre-planning scenarios and making informed decisions to avoid indecision during live trades.

• Adapting butterfly widths based on the volatility regime to optimize trade setups.

• A live trading session showcases the process of setting and executing exit strategies based on market movement.

Summary

The daily meeting for Zero DTE traders revolved around the principle of independent strategy formulation and the critical evaluation of real-time market data for informed decision-making. The discussion highlighted the pitfalls of copying trades without a thorough understanding of the underlying strategy and the legal and practical implications. The use of volume profiles was emphasized as a means to grasp the market structure, particularly focusing on how prices interact within identified nodes. The conversation also touched upon the concept of mental trailing stops and the need to pre-plan for various market scenarios to reduce the impact of indecision. Additionally, traders were advised on how to adjust their butterfly trade widths in response to the prevailing market volatility, ensuring flexibility and responsiveness to market conditions. The session included a live trading segment where the facilitator demonstrated the thought process behind setting exit strategies and the execution of a trade, which involved a critical decision point influenced by sudden market drops and recoveries.

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Daily Meeting for Friday November 3

Posted on by ernie

Mastering the Market: A Day of Trading Insights and Strategies

• Seasonal Shifts and Measurement Systems: Discussion on the drastic weather changes and the debate between Fahrenheit and Celsius, humorously referred to as “freedom units.”

• Market Moves and Economic Reports: Ernie shares observations on market trends post-FOMC announcements and reactions to significant economic reports such as non-farm payrolls.

• The Power of Volume Profile: Emphasis on the importance of volume profile over traditional chart patterns or indicators for predicting market movements.

• Execution Skills and Trade Management: Strong advice on the importance of mastering trade execution before risking capital, and the need for consistency in trade management.

• Developing Mastery Through Shu Ha Ri: Highlighting the journey of mastering trading, starting with fundamentals, through learning techniques, and eventually integrating personal adaptation and mastery.

• Routine and Process Obsession: The insistence on developing and adhering to a strict trading routine and process as the cornerstone of becoming a consistently profitable trader.

Summary:

In a dynamic discussion, Ernie tackles various topics, starting with a humorous take on weather patterns and measurement unit preferences. He then pivots to more serious matters, analyzing recent market movements in response to the FOMC’s decisions and critical economic reports. Ernie underscores the superiority of volume profile as a tool for understanding market structure, rejecting common technical analysis methods used by many retail traders.

The conversation shifts to a crucial trading lesson on the necessity of flawless execution skills, advising traders to practice diligently before engaging with real money. Ernie advocates for the Japanese concept of Shu Ha Ri to describe the stages of learning and mastering trading, emphasizing that even experienced traders must continuously revisit and hone their fundamental skills.

To cap off the meeting, Ernie passionately reiterates the importance of establishing a routine, aligning with the principle that strict adherence to a well-defined process is essential for long-term success in trading. He encourages traders to be obsessed with their routines, suggesting this as the ultimate path to professional and consistent profitability.