Video – Day Trading Without Charts – Part 2

Published on: January 17, 2014

Here’s the second part of the  Day Trading Without Charts webinar. We didn’t have time to cover all the material in a one hour session, so here’s the rest of it.

As usual change to Full HD, Full Screen for best results. 

To summarize what we have in both part 1 and part 2 of this webinar:

Day trading without charts is all about trying to capitalize on areas where a lot of traders are committed.

After moving out of an area where many traders are committed, we know that some traders on one side will have taken a loss. They are less likely to take the same trade again at the same prices at which they just lost money. Some traders will have watched their trades go offside and breath a sigh of relief when it comes back to their entry area. They exit their trades, helping the market to move back towards the breakout area. Those on the winning side will be more confident and more likely to add more to the trade. And this gives you an imbalance in terms of the people that will buy/sell that area when price moves back there.

When  a short term high volume range develops – ultra short term traders will be fading the extremes. That helps fuel any move outside the range.

These high volume areas tend to start off as high volume nodes. Just 1 or 2 prices where high volume occurs. Look for a hold IF it pushes though but you have your eye on how it reacts to that level.  If you do suspect that this is turning into a high volume area then give it time to develop. There is no hurry.

Don’t be so fast to take reversal trades, if you do take a reversal trade you can wait for the area to hold first. You don’t need to get in at the high of the day on a short.

In terms of confirmation on trades, both order flow and looking at correlated markets are good ways to confirm trades. These are covered in other webinars on the jigsaw site.

Using volume profile will give you price where entering the market gives you excellent reward relative to risk. The thing is though – you might not get to those prices. Also – you might find that you trade down to your entry price but don’t get a fill on a limit order. If I want to buy 1830, then I’ll watch the offers @ 1830.25, if the offers go from 1000 to 800 to 600 to 400, then I’ll probably just hit a market order buy into 30.25 as I suspect the level is about to break. I’ll do that even if I have a limit order buy @ 1830 and I’ll then cancel the buy @ 1830.

Sometimes though – you just won’t get filled and there will be temptation to chase the trade and get in at poorer prices. The only time I’d do that is if I see momentum going into the top of the range. Other than that. You just have to let some trades go by. That way you do not have to worry about being right all the time.

Number of ticks etc in this webinar is based on the ES. You need to make adjustments for thinner and thicker markets.

Thanks for taking time to listen to our day trading without charts webinar.