Quote from mcdull:
Hi Jack,
I have problem understanding the above statement.
1. When you say market pace peaks or volume peak, is it the same thing as "Peak Volume" used by Spydertrader? The following is the definition of Spyder's peak volume:
Peak Volume also needs three bars to create acceleration of the Gaussians Slope.
2.
>>>Both occur on market pace peaks.
Both retrace and reversal occur on market pace peaks, I have no problem understanding it [If I know what is "pace peak"].
>>> If you don't have a peak (use PRV to see it at the beginning of the bar, then the market is not going to change trend (reversal only) or just change to non dominant (retrace only)
Does that mean retrace can occur without a volume peak?
So, reversal MUST occur on volume peak, retrace occurs on volume peak and no volume peak. Am I correct?
If the above is correct. When I see volume peak, how do I know if it is a retrace or reversal?
Thanks! Happy New Year!
Look at a chart and discern that a retrace is on the LTL (at point 2 of an annotated container) and a reversal is an FTT (and it is after point #3).
Lets look at what happens after a trough. A series of increasing bar volumes follow.
If you see the delta volume getting bigger, you have acceleration. On a good platform this is annotated as an annotated P automatically. So three volume bars are involved to get a P.
Peaks are volume bars that are highest among the surrounding bars. The PRV was invented to tell you how a new volume bar is forming from the beginning of that bar.
Naturally, anyone who is a coder can turn a manual process into an automated process. "The Pattern" is how all markets operate, since there is granularity in markets. In "the Pattern" you see specifically the arrangements of the peaks and troughs in relationship to the price events.
This represents an Order Of Events. If you log 5 cycles of the market, your mind will automatically begin to have Perceptiion the sum of two things.
Sensing a display is NOT Perception. Your post is a great one and shows that you are on your way to success. The questions you ask are an example of a person who is filling in the weaknesses between parts of the spectrum of long term memory inference.
Suppose for a moment you are coding "the Pattern" and you are scheduled for an interview with Covel. You are going to explain to him how you set up the three peaks and the two troughs in a trend going from the exact beginning to the exact end. You will also be noting the three points and the FTT of this coded trend. Don't leave out the BO of the RTL that ends the trend ovrlap.
Since you know all of this and you also are using scoring; you add to your explanation just how the scores relate to the durations when they are ineffect in the trend.
After Covel spent those 8 hazardous years writing up his interviews found in "Trend Following", a joke book of some renownd (sp?) he concluded what you are saying to him is gibberish.
So you smile and continue the interview. You add in that any trend observed on a chart can be seen, also, to have surrounding trend fractals both slower and faster. You also tell him that each of these interlocking trends can be in a ratio of 3:1 with respect to each other.
"the pattern" also flexes in two geometric ways. It can get more volatile as a trend or it can grow less volatile before it ends. But the nonstationary is also affected. This is moreso gibberish indeed.
How could it be that a new market language is appearing and has not been noticed? Lets be hazardous for a moment. Look at the principles of Behavioral Finance. BF speaks about fear and anxiety and anger.
As you did, any person can be puzzled about the performance of his strategy, plan or performance.
On any point of any trading fractal, there is an ftt at any point of that trend container. four ftt's in an events process that creates an FTT starting from a prior FTT.
FTT's are places of change as opposed to thier counterparts, places of continuation. No probability, just a binary vector condition passing or failng to pass.
By following the faster fractal's "the Pattern", you can see the three Behavioral Finance parts of a trading action: pre, action, and post. This is what BF suggests you improve if you feel anxious, fearful or angry.
So we of gibberish fame and fortune (a Walter Mitty, thingy), do what we are told. We spread out the three parts into 8 parts. S L O W M O T I O N
WHAT DOES SLOWMOTION DO FOR A PERSON'S EMOTIONS?
It turns them away from anxiety, anger and fear to support, comfort and confidence. Since you have so much more time to Monitor and analize and you also "know that you know" the difference between a retrace and a reversal (both happening a relative peak volumes).
In the long run when you have to be concerned about the market's econometrics and it capacity, then you deal with how three trading trends make up a Depression going on several slower fractals away.
A few years back I laid out the new year about the time New Years was rolling through in very late December. So the next year turned out exactly that way. It wasn't the white rabbit at La Costa that told me; it was just WMCN that told me to tell my audience.
