Foresight, What a Novel Concept

Post by:

Price and volume are the only true leading indicators. When elephants walk across your front lawn they leave footprints. The elephants are the pros and the lawn is a price and volume chart. Below is a 3 min es chart from yesterday.

Pros sell on up (blue) bars of weakness and buy on down (red) bars of strength. Pros buy wholesale and sell retail.  It enables them to use very tight stops. Tight stops enable smaller margin which enables a better risk reward ratio and a greater cash on cash return.

On the red arrow sell prices rose from the open of the next bar 1 tick. On the blue arrow buy prices never traded below the open. With market orders the entries needed a 3 tick and a 2 tick stop respectively.

The black lines are what I term order flow levels – where pros and ams exchange money – the purpose of mkts. Price and volume work in any market in any time frame. Price and volume enable a trader who can read the bars to anticipate what must happen to meet the inventory objectives of pros 2 or more bars before price moves accordingly.

Joel Pozen
http://www.besttradingstrategiesrevealed.com/

Submit a Comment

Your email address will not be published. Required fields are marked *

VIP NOTIFICATION SERVICE

TIRED OF BEING THE LAST TO KNOW ABOUT THE LATEST WINNING TRADE?

Join our VIP Notification Service and Be Among The First To Know About All The Latest Trade Ideas, Trading Tips, Highly Profit Potential Trades, and Market Predictions From Our Team of Expert Traders!
Join Text Messaging List
By providing your mobile phone number and clicking on the above button, you agree to receive automated promotional messages from us. By opting into our SMS Program, you agree to our Terms and Conditions and Privacy Policy  
You have to agree on terms in order to proceed to the subscription.

• FREE VIP NOTIFICATIONS •

Get Our Free Daily Trading Videos

Delivered To your Inbox

By submitting your information you agree to our Terms of Service and our Privacy Policy