Tick vs Time Charts & Free Webinar

Free Webinar Info Used to Earn 16 Points!

The Free Webinar we held yesterday had much useful information about trading by price and volume, including tick vs time charts.  Fifteen different trade setups across five different markets were detailed in this 50-minute presentation.  This morning, one trader wrote to say,

I can’t believe how good the content is.  The info regarding tick vs time charts was pure gold.  I took a trade in the ES this morning based off what you taught yesterday and made 16 points profit!  Wow!

For those of you who registered and missed yesterday’s presentation, you can still access it at the link provided.  For those of you who didn’t register … well, OK, you can still sign-up and get the content.  Here is the link: Free Webinar Wyckoff Principles

Tick vs Time Charts

Several traders asked about why I use tick vs time charts in my intraday trading.  Pros understand the value of tick vs time charts; most novice traders don’t.  Tick charts build bars based off the number of trades that take place (called ticks).  You set the amount of trades or ticks for the bar (for example, 3000 ticks in the ES).  One thing this does is make the overnight data much more readable, especially when combined with the Weis Wave for volume. The chart shows an example.

Tick vs Time ChartsHere we see a standard, 5-minute bar chart of Crude oil and alongside this, a 750 tick chart.  The vertical red dashed line on both charts represents the beginning of the trading session. Note the 5-minute chart is drawn out with small price bars, lots of gaps and numerous spikes.  It’s difficult to read.  The tick chart, on the other hand, compresses the same data into a readable form.  At A, the 5-minute chart looks threatening.  We see large bars down and heavy volume.  It’s hard to justify a long trade here, but that is what was called for.  The tick chart shows this as a non-threatening pullback and, indeed, a nice Wyckoff Spring.  Note the volume and compare with the 5-minute chart.  See the difference between tick vs time charts?  It should be jumping out at you.

Major Sale & 30% Discount

In honor of Black Friday and to celebrate our new website, we have put all of our video tutorial on sale.  You can enjoy a 30% saving off the listed price by using the coupon NewWebsite30 at checkout.  The 30% discount may be applied to both trading courses and trading psychology courses.

Free Trading Webinar Today

Free Trading WebinarFree Trading Webinar on Wyckoff Principles today.  We will be looking at the S&P E-Minis, Euro Currency, Crude Oil, Gold, and the 10-Year Notes.  We start after the markets close at 4:30.  At the end, I’ll give you my take on what’s up near term for these markets. Free Trading Webinar As always, you will come away with relevant and useful information you can immediately apply to your own trading.  Here’s the link to register:

Free Trading Webinar Wyckoff Principles

Free Trading WebinarWe will cover several different price and volume trading principles that occur regularly in all freely traded markets.  In this Euro FX chart, for example, there were three excellent trades that set up well and produced excellent profits.  Can you identify the locations?

We will explain these and several others in the free trading webinar later today.

Free Trading Webinar Training Discount

As part of the free trading webinar, we will also be announcing a 30% off sale on our video training products.  This is the largest discount we will have this year.  The coupon needed for the sale will be announced in the webinar.

Trading Price & Volume

Trading price and volume—or any method, for that matter—is definitely difficult when the market sees volatility contract.  We have been seeing volatility contract in the S&Ps recently.

Trading Price and Volume in the S&Ps Today

Trading price and volumeTrading the S&Ps today had its challenges.  The Asian session had the best setup when the market failed to continue lower after penetrating the 2-day low (#1).  Note that price and volume were helpful here.  Price fell swiftly down into key support but with no supporting volume.  A nice setup.

All that came next was essentially choppiness—the hallmark characteristic of low volatility—into yesterday’s high.  Frankly, I was looking for an upthrust and missed getting short (at #2).  Fortunately, the oversold position and increased demand allowed for a day-saving trade (#3).

Trading Price and Volume For Tomorrow

We are in a fairly tight range framed by the high and low of the last three days.  Volume came in last Thursday causing the market to falter, and we are still trading within that day’s Trading price and volumerange. Watch for the breakout of this range.  As you do, keep an eye on the Naz.  Although the S&Ps and Dow closed strong today, the NQ was a bit off.  See how this market acts next.  It could give us an early clue as to the direction of the market’s next move.

Free Webinar on Trading Price and Volume Wednesday

We are holding a free webinar on trading price and volume on Wednesday.  Join us for a half hour or so and we will review Wyckoff principles in the S&Ps, Euro FX, Crude Oil and Gold.  We will look at what’s next in some of these markets, as well.  It will be fun and you should come a way having learned something useful for your trading—a half-hour well-spent.  Learn more here:

Free Trading Price and Volume Webinar

Trade Mindfully: The Critical Skill of Mindfulness in Trading:

Trade Mindfully

My book, Trade Mindfully, is the first book to detail the benefits and application of mindfulness in trading.  It’s at the printers now and is due on the bookshelves December 3rd.  You can pre-order for quick delivery, and the Kindle version is now available, if you prefer the electronic format.  Here is a link to the book in both formats at amazon.com:

Although the book covers several trading psychology topics, mindfulness is a featured mental skill all traders will find of great benefit.  The book covers the ways in which mindfulness is useful for trading.  In this post, however, I’ll first step outside of trading and highlight one of the most recent findings related to mindfulness to illustrate the value and importance of this mental practice.

Recent Important Mindfulness Meditation Research

In a study just published in the journal Cancer, researchers looked at female breast cancer survivors who had completed medical treatment for the cancer and were experiencing high levels of stress. They were randomly placed into a mindfulness meditation group, a psychosocial support group or a control group for a three-month period.  Compared to the control group, women in the mindfulness and emotional support groups had greater telomere lengths at the end of the study.  Telomeres are nucleotide structures at the end of chromosomes that protect and buffer our genes from damage.  Over time, they become shortened due to ongoing cell division.  Shortened telomeres are associated with ageing, risk of disease and mortality; longer telomeres are protective against disease and the effects of ageing.  Through mindfulness practice, we can reverse telomere shortening and extend cell life-span. That’s pretty impressive.

Mindfulness is Not a Fad

Mindfulness is considered such an important new field that Ivy League school, Brown University has just created the first undergraduate program in contemplative studies.  Students are not only learning about the academic side of mindfulness meditation, but are also practicing it as a part of the curriculum.  Other American universities have established programs in contemplative science.  The University of Wisconsin, for example, has created the Center for Investigating Healthy Minds to study how meditation and mindfulness can directly help humans.  The University of Massachusetts Medical School has been a pioneer in research and clinical applications of mindfulness-based stress reduction, and UCLA has a research program in mindfulness.  These are just a few of many American universities focusing on the science and practice of mindfulness.  European universities are also deeply involved in mindfulness research and practice.  The University of Oxford has been an early investigator of clinical applications of mindfulness, especially in depression.  Researchers at the Norwegian University of Science and Technology, for another example, have just published brain imagery research showing how the brain works while meditating.

The point is, mindfulness is not just a passing fancy or fad.  It has real substance.  It is why I focus on mindfulness in Trade Mindfully.

Benefits of Mindfulness in Trading

Mindfulness in trading can be of significant benefit to traders.  Mindful trading will positively impact traders and their trading in a number of ways:

  • Reduce loss aversion
  • Mitigate the disposition effect (i.e., cutting winning trades short and letting losing trades run)
  • Help traders get into “the zone”
  • Reduce the negative effects of cognitive biases and heuristics on trading decisions
  • Directly reduce stress
  • Help traders see the market more clearly
  • Increase awareness of the trader’s internal state and how it impacts their trading
  • Increased ability to maintain focus on the market and the trading task at hand while trading, even when emotions are running hot
  • Increase internal emotional regulation
  • Other positive effects on trading and trading behavior

Mindfulness as it applies to trading, the benefits traders can derive from mindfulness and much more are all detailed in my new book, Trade Mindfully: Achieve Your Optimum Trade Mindfully: MInfulness in TradingTrading Performance with Mindfulness & Cutting-Edge Psychology.

Stock Market Analysis: Will This Market React?

Last weekend, our stock market analysis indicated that the 2040 area would be difficult for the market to move through.  That has been the case for the past several days.  Although we are seeing potential diminishing demand, dips down have been met by buying.  We haven’t seen much of a pullback.

Stock Market Analysis Key Question

The key question for the remainder of this week is will resistance have an effect on the market and cause it to falter?

Stock Market AnalysisI’ve posted a longer-term tick chart for a more detailed stock market analysis.  You can see the strong uptrend since late October.  We can also see that the uptrend is also showing some weakness.  The market is having difficulty stretching up to the top of the trend channel and the trend support level—the demand line—is beginning to weaken.  We had a lot of volume come into the market on Monday and Tuesday.  Although the market moved up on the volume, I can’t say that the volume pushed the market up easily.

Should this 2040 area (today’s overnight high thus far was 2043.75) hold as resistance, the market could move down into the 2030 area and find support.  A break below 2025 (yesterday’s low) could draw out supply.  Until we see supply come in, however, we have to favor the more bullish scenario.  Should a little supply come in, we could see a pullback to the 2015-2010 area (blue line), perhaps sometime next week.

Free Webinar Next Week

Just a reminder that I will be holding a free webinar on Wyckoff principles next week.  It will run about 30 minutes or so and we’ll look as the recent and current markets.  You should come away with some usable knowledge you can immediately apply to your trading.  Join us by registering:

Free Webinar

David Weis Webinar

Several members of our community have been asking about the webinar we’ve scheduled with David Weis.  We’ve postpone the webinar until early January at David’s request.  We will keep you posted on the date when we get closer to January.