Goodbye BMT, Hello Blogspot

As I have stated in my last 2 postings, I have spent the last 10 weeks journalling at BMT and a wonderful and rewarding experience it was for me.  However, moving on, I will be updating this blog as well as posting my trades on the OTA_XLT_PTN site.  That sound like quite a mouthful.  It is the Online Trading Academy XLT Power Trader Nation site.

Since being away, I have learned more about the RPM indicator, which I had just been introduced to just before starting my journal at BMT.  I found that it works very well with the Volume Patterns Indicator (VPI) in identifying the better Intraday supply and demand levels on the large tick charts (in my case 1000 tick for CL and 700 ticks for GC). 

As an Intraday trader, these levels works best for me rather than using levels from the larger timebased charts.  I really only use levels from the current day and the previous day.  I find that high volume will find other level from a larger perspective, so I do not need to look at any charts larger than 15 minutes intraday.  However, I still look at the daily charts at the weekends to try and identify possible market turning points based upon Volume Spread Analysis (VSA).

Over the coming days and weeks my trades will refer to the three indicators I use, these are:

1 - The Better Volume (BV): This indicator is used only on the timebased charts and I only use it to identify Climax and Climax Churn bars, as price appears to turn on relative high volume.  I have set a sound alert, so I do not need to look at the chart.

2 - The Volume Patterns Indicator (VPI):  This indicator is mainly used to identify High Volume Churn (HVC) bars on most of my charts except the constant volume chart.  HVC bars is where Smart Money (SM) exchange contracts with Dumb Money (DM).  It is very good at identifying high probability intraday Supply and Demand (S&D) zones when used in conjunction with the RPM indicator.

The VPI also identifies low volume bars and this can be very good to see when the SM are not interested in an up move, and can even identify reversal.  See the 1000 tick chart screenshot I had updated just before the recent $11 fall in CL.  However, the HVC bars is the main reason for this indicator.

3 - The RPM indicator.  I believe the RPM stands for rate per minute, but it could also mean 'Rapid Price Movement'.  This indicator works very well on all chart types and is the only one I have on all of my charts.  Whenever I see one of these bars breaking out of a basing area, it makes me take notice as that basing zone could be the next active intraday S&D zone.  Once a new move/trend has started, it is very welcome to see more RPM bars in the direction of the move as this give confidence that the momentum will continue.

The other use for the RPM is identifying exhaustion of a trend especially if accompanied by a large volume bar on the 5 minute chart.

I also have a couple of moving averages, but these are purely for visualisation.

So you can see that my 3 indicators are not the run of the mill lagging indicators (although they lag for the time that it takes a bar to close).  They are more here and now and they have helped me become a better intraday chart reader.  Now all I have to do is control my impulsiveness and indiscipline and stop my counter trend scalping and I should be OK.

See the 1000 tick CL chart below to show why the VPI low volume (LV) bars gave me an indication that we could get a sell off in Oil, but I did not expect it to go down as far as it did.