Verniman thinkscript strategy for /ES Entry signals

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rgmclm

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I'm checking Verniman out for a month, I hope you can figure out the intra-bar, sorry I'm not a programmer.
 
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perdurecapital

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Hi everyone,
I trade a very similar style to this, I watch developing market profile, setting initial balance areas at both 30 minutes and 1 hour. For market internals I watch S&P Advance/Decline and advance decline of the indexes, also TRIN, VIX, and Ticks... both $TICK and cumulative total ticks for the day. Set ups and triggers for trade entries are the same as Verniman, Breakouts of VAH or VAL of the developing RTH profile. If you don't understand what that means it is this...

I set my chart time period setting to 2 minute TODAY, and hide Extended hours trading... What this does is begins the chart from the 9:30 cash open, from there each bar develops and builds the TPO, basically giving you the regular trading hours market profile which is constantly changing as the day progresses. From this we get the value area highs and lows of the TPO. Price breaking out of these areas are where we enter trades and lean on for stops. The shape of the profile can give you stats and increase your edge. A "P" shape profile with point of control higher in the profile is bullish. If you take the point of control level to the low of the profile you can project a "balance target" in other words where would price have to go to balance the profile and create "D" shape with the point of control in the middle of the D or balanced distribution. I have been seeking a way to code this into TOS, I believe Mr. Verniman has this coded.

You can also lean on overnight statistics, gap fills etc.... areas with high statistical probability of being tested.
I manually mark my charts for the following every morning... Overnight High, Overnight Low, Yesterdays RTH Close (Gap?), Yesterdays Value High, Yesterdays Value Low, Yesterday's POC, and any other level that I deem to be significant.... that would include Excess areas, Poor Highs or Lows, any area where the auction was incomplete on higher time frames.... If this is confusing I would suggest digging into Market Profile and Auction theory... Mind over Markets, or Markets in Profile by Dalton are the classics...

Essentially the method is trading the edges of the current auction seeking value transition or acceptance/rejection of the current balance area aided by tapereading. I taperead with a Time and Sales and the DOM, for this I use a futures platform as I find TOS to be inadequate and too far behind the market. For the charting purposes it works fine.

I also take trades based on Wyckoff principles and VWAP breaks with volume filters. I lean on the Initial balance areas for the Wyckoff set ups...
 
Joseph Patrick 18

Joseph Patrick 18

New member
Hi @STB is there anyway you can please share your set up? I am looking for a volume indicator like the one that you are using with the dark green and light green..I also use a VWAP Fractal Energy and a Momentum Squeeze fire indicator...I am using these for 1, 3, 5 minute setups equities not futures..if you could point me in the right direction I would greatly appreciate it. Thanks Joe
 
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Bobbydigital83

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Do yo mind sharing your chart style with strategy?
 
Prison Mike

Prison Mike

Member
Hi @STB is there anyway you can please share your set up? I am looking for a volume indicator like the one that you are using with the dark green and light green.
I believe that’s “floating P/L” and is used to show strategies profits and loss, not a volume study.
 
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thoughttrain

New member
@perdurecapital This is great.. can you share the chart type used here, please? Monkey bars don't quite match your setup. I prefer the clarity in your chart. How does one get the indicators on your chart? I am not sure I want to use all, but if it helps, I am game.
 
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perdurecapital

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@perdurecapital This is great.. can you share the chart type used here, please? Monkey bars don't quite match your setup. I prefer the clarity in your chart. How does one get the indicators on your chart? I am not sure I want to use all, but if it helps, I am game.
The monkey bars chart is just a market profile set up, 30 minute chart, 10 days, the chart next to it is a regular candle chart 30 minutes also with a volume profile. Those are just for reference points and roadmapping key higher time frame levels.

The intraday chart I use is a regular bar chart 2 minute time frame with the following...
All the indicators are either stock TOS, from either this website or futures.io and modified some to fit my style.
I use the following
TPO profile
Opening Range indicator set to 10 am
Opening Range indicator set to 10:30
VWAP breakout indicator (by BEN at this site...) modified to make it green or red based on slope
Gap indicator (cloud above or below previous days close)
30 period hull moving avg (for short term momentum)
Tick indicator ($TICK index with 5 pd moving average and std dev bands)
Weis Waves for Volume

The second chart is advance decline of the S&P with a linear regression study and quotes of other indexes breadth, VIX, TRIN.
Below that is Cumulative Ticks for the day.

I also watch cumulative delta and DOM on another platform.
 
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perdurecapital

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hey perdure, please can you share your study charts with us? thanks
See above post, there is really nothing special that I use... T
hey perdure, please can you share your study charts with us? thanks
See above... If there is a specific study that you are looking for I may be able to help, but really most of that stuff is either prepackaged in TOS or was found on this website.
 
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ramsri1

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Hi Perdue - Do you manually draw those hve and lve levels ?
 
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perdurecapital

New member
Hi Perdue - Do you manually draw those hve and lve levels ?
Yes, every morning I update levels that I want to watch based on market profile on the higher time frame charts. Intraday I'll define levels for springs and upthrusts and other set ups as well, but usually these things are already going to be defined by the initial balance areas or some other level that is already on the radar.
 
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perdurecapital

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Post Mortem yesterdays trades, each was based off of breaking the 30 minute and one hour balance areas (Green Lines). Breakouts and failures back into the range. 4 winners one small loser. typically wouldn't take the last trade short back into value, but the tape went red against long bias and there was a lot of air between price and VWAP. Being on the right side of a trading range, looked like a good upthrust opportunity to fade. Being able to read the tape is as important as the indicators themselves.
 
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perdurecapital

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Pretty similar to yesterday, Open in prev days range, on the edge of Value. Bullish imbalance in the morning, broke through the OSR and initial balances.... tested VWAP, couple of springs. Ignored the short VWAP break signal at 3:10 as bias was long. Play the close for the Overnight Stat.
 
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Moon_Dog

New member
Hi @perdurecapital - Thank you for all of your knowledge in this form. Where can one get the study that displays the market internals at the top of your $adspdc chart?
 
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