Thank you both. That was exactly what I was looking for. Very...

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Goldilocks

2,127 Posts.

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25/10/21

18:13

Post #: 57057280
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Originally posted by Rooster100: ↑

Hi Goldilocks- here's another way to go forensic with it using the Volume Profile Session Volume tool and a bit of VSA (Volume Spread Analysis) for some bar by bar indications. This is the last week of 15 minute bars, and I've narrowed down the standard "Value Area" on the Volume Profiles from 70% of the days trading to 50% to attempt to get it to automatically show some volume shelves more clearly. Worked OK and they are the dark blue areas of the Volume Profiles.

I think the observation by @FlashPoint that the down moves are on a lot less volume compared to the opening move is interesting. Price is not being "smashed" down or capped with serious intent - where you tend to see a massive increase in volume at a specific level, suggesting selling with intent or shorts being used to manage the price. There are definitely signs of selling at specific points but then participation seems to drop off dramatically, as if some selling is introduced to help trigger a down move, then the buying is just "switched off" and price left to gravitate down. I listened to a podcast about a year ago where a fund manager was explaining the different types of algo's they use when trying to accumulate with size, and one of the methods was simply aiming buy pricing at a certain VWAP, and then basically switching off the buying when price exceeded the VWAP. I'm not suggesting the LTR moves are all algo driven, but just to point out this particular style of trading when there's a big position to fill.

Anyway, here's the chart for a bit of fun!

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See below

Originally posted by FlashPoint: ↑

I took this a little further in the following 5 Minute chart, as I added the Awesome Indicator (Top) and its components 5 and 34 EMA into the price chart. I naturally have no idea if these guys use any indicators at all or which ones they would use, however to write any algorithms they would peak something and back tested before activating and using it. However it becomes clear that using 5 and 34 EMA crossover would be profitable, which can be improved by switching to the 5 and 20 EMA crossover and so on.

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Thank you both. That was exactly what I was looking for. Very interesting.
When I retire and have more time on my hands I would like to have a go at this. The bots are using algos, if we don't a least attempt understand the trading in more depth from a mathematical perspective we are giving away too much to them. The one thing we have on the bots though is perspective on the resource, management, supply and demand going forwards. Although, I'm sure you will tell me that's in the charts too, it is all factored in there right!
Thanks again.
G

LTR Price at posting: $1.72 Sentiment: Buy Disclosure: Held
10 Upvote

0 Great analysis

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