Trading the markets is like playing a game of chess for me. We compete in various situations with different smart individuals and ourselves day after day. It is very important to simplify the process of trading in my opinion. With this thought I created a new set of chart template for our platform of choice, Sierra Chart. And because I talking about this royal game, the new design of the chartbook is inspired by chess: black and white.
All members of The Private Banker can download the charbook without any charge in the chart templates section on our site. Of course the other chartbook packages are still available to download. My new chart templates have to been seen as an additional idea of simplicity in order to take the best out of it for the trader’s own unique trading approach.
I use one plain chart to identify the current market balance/imbalance behavior on various higher timeframes with our top down analysis in order to find potential liquidity pools as well as to figure out the path of least resistance. Additionally I utilize a daily volume profile chart to see the distribution structure of the previous days. Finally a 4 hours and the 1 hour volume nods chart complete my view on the market. However, to mention is also the “hidden” Quarterly VWAP for some structure details like:
Where did the market open or trading currently: above/below/inside of the previous VWAP value close area?
Is the market trading above/below/inside of the developing VWAP value area?
What is the current slope of the developing VWAP value area?
This three questions should give the trader an overview about the current state of the ‘chess’ game. Anyway, I rarely look at this particular chart to avoid a possible information conflict in my mind.
You can read some of my views with this chart template on our community website as well as on our Twitter timeline if you are interested how I actually use them.
Take it easy and let me know if you have any questions,
Sebastian
