Another traderÂ question came in over email recently:
I have a couple of questions for you on your “Following the Quest for Value” course. Can you provide some additional details as to what that course covers? Most often when I read turning points, pivot points come to mind which are pretty simply calculated but everything I’ve read (and even seen) is that one of the real reasons that pivot points work is that enough people use them.
Also, is there any prerequisite level of knowledge/experience to really benefit from that course?
Let me answer the second question first.
The only real prerequisite for the FQV course is a basic understanding of technical analysis. Oh, and an open mind helps considerably. In fact, someone with a great deal of experience may not get as much from this as someone relatively new based on the fact that they may not be as able to adjust their mindset.
The main focus of the course is outliningÂ the way IÂ use and applyÂ a charting methodology I refer to as price distribution charting, but which is altnernately known as Market Profile, volume at price, and some other names. No matter what it’s call, basically the concept is to look at the frequency of trading action at the various price levels. Seeing this distribution provides us information about who is in control, where the real support and resistance points are, and where the market is likely to be drawn as it moves.
The course does not outline a specific trading system. It doesn’t use any indicators. While using the price distribution charts – which are becoming more readily available under various names -Â does offer definite benefits, it is not absolutely required. Price distribution charting isÂ most definitelyÂ something heavily in the discretionary side of trading, so you won’t find much you can apply in a mechanical fashion (though I have long had thoughts about ways maybe it could be done and might one day have the time to focus some research in that area).
For me, however, the biggest focal point of the course is changing one’s thinking. It’s about stripping things down and understanding what’s really going on behind the process of price changes.
Hope that helps.