1. I was too aggresive trading Crude Oil. Flipping my positions just a mere fractions of minute. Worse, I don't intend to scalp my position. However, if I just sticked to the plan aka. only trade one direction, even if chose wrong direction, I still can make money on the pullback. CL pullback usually worth entire day ES range.
2. Operator error on my side. Friday losses should be at least breakeven trade.
3. Volume momentum helped me decrease my amount of trades. Follow the anchor bar direction until proven otherwise or another anchor bar emerged.
4. Too bad I only have 2 months worth of data. But the result is incredibly good. It also worked nice on TF, though I just roughly backtested it. It's not so good on soybean.
The Logics:
1. Big Money always start their Accumulation/Distribution (A/D) with counter trend. If not, how can they built their position at good price. They bought wholesale price when retailer won't to get out. Make sense since it's hard to buy at rising price, but easier to buy at falling price.
2. I believe it's very hard to identify the Big guy doing A/D. Unless you wanted to counter trend all the time which is quite risky on the long term.
3. After A/D, they will protect their initial position. They allowed the position to touch, but rarely allowed it to be pierced. That's why pullback and retest is commonly happened, but rarely drop thorugh the anchor bar.
4. How they protect their position is fortunately visible in the chart. If you saw fast and big volume happened, IT'S NOT THEIR FIRST A/D! They made big volume to protect their initial position. Retailer who entered after the big volume happened often have to stand the whipsaw and pullback.
5. Pullback and Retest somewhat necessary to wash away some retailer to piggyback the trade. However, most of the time anchor bar wasn't breached. So, if we stubbornly go with the big guy direction as long as the anchor's safe, soon we'll enjoy the profit.
I marked the Anchor bar to show what I mean. Below the anchor means short, and vice versa. It's not entry signal. It's my bias. Sometimes it is broken, meaning the reversal is coming. Don't be a dumb, flip the trade.
I also actively adjust the indicator setting. If it's high participant beyond ordinary volume, I will decreased the sensivity. I don't want to have lot of faked anchor bar in my chart. However, if there's no signal appeared I won't increased the sensitivity. It means no Big Money Participant. There's 3 days out of 40 days data that having no green bar. One of them is a super slow chopped. Two of them is normal.
The indicator worked bad on inventory report day. Easy way is don't trade it. But its profit potential is very lucrative. There must be ways to trade it.
In Summary, this indicator is good. It tracked the big volume. Not just big. It need to be fast. No instituitons in the world poured a big and fast volume aim for scalping. They want to build positions. It's our job to identify and piggy back the ride.
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