When I was in high school, I learned to play the trumpet. How I came to choose this instrument I don't remember, but I do recall taking endless lessons. One of the first things taught was how to read sheet music. This meant learning each note, what it meant, and how to identify it.
After playing in Orchestras and Jazz Bands, new musicians would come along, and immediately we would classify them into one of two groups - whether or not they could read sheet music. They might be a fine player, but if you could not put a sheet of music in front of them and have them play it, sight unseen, the musician could only go so far.
I bring this up because of how it applies to trading.
In trading, instead of notes, you have bars. These bars, combined with volume, can tell you the entire story of the market participants. They can tell you where professional money has entered, and where it has exited. Most importantly, these bars can tell you the sentiments of the professionals, since they are responsible for the majority of volume. Each bar size, combined with volume has a different meaning, just like musical notes. These combinations reveal the logic and psychology of the market.
To be able to read charts the way a musician reads sheet music, is frankly, a calling of a higher order. This is because the majority of traders use tools that remove the 'noise,' smoothing the very subtle clues that are present.
Most math based indicators lag price, and most traders utilize these indicators exclusively in which to make their trading decisions. Therefore, the average trader is entering into a move that has already begun. The problem presents itself again, for this same lagging indicator gives an exit signal too late. This combination has been detrimental to untold numbers of traders. Countless traders can recall having profits on the table, only to see it go up in smoke. Or, to take quick profits, only to see the train really leave the station, without them of course. Sound familiar? How can one have an edge using what everyone else has.
PVSA, without the use of Crossovers, Bands, Oscillators, Arcs, Fans and Astral projections, takes a candlestick bar chart and classifies each bar to determine where the professional money has entered or has exited. Many traders are astonished when they attempt this seemingly easy feat, only to discover they are clueless at discerning professional sentiments.
Remember, you did not start trading to become a expert on terms and definitions, but to make money and to be on the right side of the market!
© Eleazar Heracleopolis All Rights reserved
Eleazar Heracleopolis, http://www.nextbartrading.com is a veteran futures trader, trainer, and creator of the amazing 'Rosetta Stone,' a scientific method of how to classify volume and the imbalances of supply and demand, to put you on the right side of the trade and profits in your account. |
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