Getting down and dirty is where the rubber meets the road ...

As a brief summary, we learned that the mind is capable of acquiring what it needs without flaw and it fill in the pieces as it requests them.

We are using a single pattern in a container which "completes systematically and in an order of events.

Trading becomes very expert when the mind is differentiated by a learning process that is dictated by the mind's questions.

Most people cannot learn to trade even though they are bright and accomplished in thier professions whatever they may be.

The reasons for all of this are well established and a simple bridge provides the solution to any learning problems.

No one can build technical support systems unless their minds allow them to operate as experts in the trading vocation.

People undertake becoming expert through three levels of mental development: awareness, compassion and wisdom.

tThe associated practises for this have been documented and practised for over 5,000 years.

Get oriented to use the bridge.
 
I lost a long post by tabbing during my typing.

The long post explained how to let your mind build your mind.

You do this only when coherent and you learn to be coherent by doing meditation and getting familiar with coherent circumstances, situations and situations. I mentioned the 70 books of martin Gardiner of Scientific American puzzle, games and essay fame.

All in the post was repetitive but it did establish how you do learn from the bottom up to get to full differentiation.

ET is a pain in the ass sometimes. From now On I will work in old word and cut and paste out of word which does tolerate tabbing when typing.

You are working on getting rid of the irrational view that you have of CORRECTNESS and how it comes into being.

the human race went through a winnowing and emerged from 75,000 member stock.

gens foirwarding and survival instincts assure that the mind does mind building processes that are flawless.

Since you do not trust this process, you aren't able to build a trading mental full differentiation. Our example bank employee is in the same place you are. He can't trade successfully because he can't build his mind.

I focussed on the seven symbols of the pattern and in particular where your "gap" in time exists that you are maintaining.

I brought up a myth called "confirmation" which is the width of your "gap". It is roughly the distance through B and up to and including the 2. The seven parts of the patern symboloically are: B 2B 2 R 2 B.

In the pieces that make up the distance from the B to the 2 in a differentiated mind, being absent cause a gap btween the window of the behavioral action in time and the FAKE "confirmation" that you believe is in existance.

As I bore down on the mnind processes created by gene forwarding and the survival instinct in the human brain. These processes of the mind are inherent and you need to get used to letting them begin to do their job at this point in your life.

You will be building a technical suypport system using computer science once you get through becoming an expert trader by learning (and continualy measuring how you have or loose coherence) in a state of coherence on three levels: awareness, compassion and wisdom.
 
I will replace the lost post in three parts:

SKO and PVT. This just defines why and how the pieses of PVT are integral and how any market is a place to apply PVT.

The Depression context

And dealing with eliminating the "gap" between the market part I and trading part IV. This will result in how "linking patterns" is build in the mind. this "linking" will be called "resolution" and resolution will have a focus of putting the pieces together.
 
Quote from SK0:

Hi Jack,

This is regarding PVT trading and practising annotation on daily stock charts as you suggested to me. Sorry to others if it is OT.

How do you cull quality stocks and narrow them down to a short hotlist in global markets where no providers give EPS and RS ranking? I assume you have not dropped them yet. What criterion you would recommend?

I believe that it is beneficial to manually annotate five cycles with >20% returns within the last six months for each stock in the hotlist and then rank them by % change in money velocity per day.

For global markets, the one-pager unusual volume correlation table is not relevant. Would you suggest one should follow your classic way to purchase a stock in the hotlist when its DU volume is reached in the first two hours and exit when estimated peak volume is hit?

Also, how would you use trailing stop for people who prefer to monitor on EOD basis?

Thanks in advance.
More...

My lost post began with this quote.

A good set of references for this PVT application was presented and here I repeat them AND corrolate them with two other well known stock traders: WJO'N and Darvas.

WJO'N got his feet wet over 26 months where he increased his initial capital by 20 fold. 10 fold is known as an order of magnitude.

I took 100,000 dollar example in IBD MeetUp to 1.000,000 dollars as an example of an order of magnitude change. To get to 100,000 dollars a person could take 10,000 dollars to 100,000 dollars. PVT works with a universe as SKO states. This Universe criterion puts in play a use of volume as a leading indicator. The platform providers chose to call the volume measure "unusual volume". It is a daily cummulative volume meausre and as such represents a signal generator for the pattern of PVT.

A one page sheet illustrates the application of PVT in terms of signal applications coming from unusual volume.

WJO'N used QA to do his 20 fold increase in 26 months. See page 173 of "24 Essential Lessons for Investment Success"

Read Darvas's popular book on "box" trading. He operated in the million dollar range and the book was written as a consequence of requests from the media when he made the news. the first version was published "for the trade" and then it was made available to the public.

Culling stocks by Darvas, WJO'N or PVT practitioners is done the same way. A criteria is set and a Universe is built. All three used what data in FA was availalbe as they began. Today the job is simply the click on an icon thanks to the electronic era. Any market any where on any fractal can be clicked and a Universe appears. This was not possible for T666 at first. So he failed. then he did do it using the PVT Universe and failed to publish his successful results. we only get the humor of hyis failure; this is important. Sappjason is a T666 follower and he gets the consequences of following T666.

The logic of using PVT has major components: sorting a Universe sets up the signal system for measurring the cycle of the PVT trading (it is a 2 to 5 day cycle when making money is considered) Next comes using the signals effectively and efficiently. Three charts are used: daily, 30 minute and five minute. This is the resolution aspect of PVT.

Currently the first quarter of 2010 yielded an annual rate of income on 27K or 150,000 dollars a year. In the 2nd quarter this rose to 250,000 a year. Two losses were encountered in 62 trades in the first quarter; one was a wash. No stops are used. MADA is used.

I did a session on stops in the IBDmeetup. There were 12 types of stop strategies presented using tables, Web references and full blown transcribed examples. The bottom half of the IAS is devoted to the method recommended. Further, in ET, I have posted IN ADVANCE the use of this approach. The stops were there they were not hit but their trailing setting were without flaw for the purpose of using stops.

For SKO the one pager is not relalent; for PVT traders the one pager can be used successfully thoughout the world.
 
Another part of "24 Essential Lessons.... " amplifies on the use of QA to get Universes for trading.

Nice examples include a mother of two children and seventh graders who "beat" the pro's.

WJO'N asked the mother why she brought her children to a one day training session sponsored by IBD. the mother siad that sinc she had made a milliion dollars using CANSLIM and EPS and RS she felt her children should come to a meeting to learn how to make money.

Imagine T666 as a recalcitrant child in an IBD training session. He can't see the "natural cycle" of trading or investing. So he throws a backtesting fit that shows his mental vapidness in full view. Everyone would be empathic for his mother.

See Appendix B pages 145 onward.
 
the current Depression is the economic and econometric "context" for the forseeable future for al traders.

As we saw the industry simply sidelined on 06MAY10.

I did a session on the Depression in 2006 for the Tucson IBDMeetUp.

there you see pages on the screen from Tharp where he listed a chronology of the historical Bull and Bear market segments.

I will post several illustrations, necessarily one at a time.

The series will articulate the order of events that brough this depression into full swing.

The Bull market ended with a climax run. (see Glossary of 24 Essential lessons page 153.

Parallelograms of the market pattern overlap so we begin with this overlap. The climax run is shown on the attached illustration

I announced the Depression around JUN/JUL06. The second and third illustrations shows this proof.

The setting for the rotten situation is measured continually in the periiodicals of the financial industry and the global journalists. This is not the BS of Taleb or Covel type opportunists. this information is based on the facts presented by the markets.

the commentary along side the data does not explain what is going on in any manner. It is up to the reader to make use of the data to draw conclusions and to GET THE CONTEXT.

I presented the importance of 10SEP09 as a milestone in this Depression. We will get to that after we straighten out our context understanding of mid 2006.
 

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the mechanical analysis process with this illustration is to set up either a range of possible excursions or keep heads up on a violation on the range of excursion and do a cogent analysis on the violation.

In weekly publications like the Economist you have cahrts that keep progressing and they are available for all sorts of topics and regional measures. The world is covered weekly by the Economist using facts.


as you saw in the current month we broke out of the 2 of R@R 2B 2R. This is our gap that is ubder consideration for learning to trade. the thinking gap begins with an FTT and goes to the 2 following. This period of lack of personal trust emphasiizes the "survival" mechanism dominance.


building personal trust for context is how resolution is reached.

The whole public arena is available for viewing and what you get to see is the Gap of all sectors of the public.

mortgages are being made by our bank loan officer and he is getting paid to put capital to work. He is getting the job done and the market is going to do something following the years when the tach bubble burst and a new administration came in well after the US became the greatest Debtor nation two admins back.

Draw in the range of success of our bank loan officer who is learning to trade and who is going to build a technical support system for his trading..
 
Confirmation is how the gap ends and we need to not have confirmation as part of trading. we need to take the gap out of the mind and then we need to use those gapless results to move on up the skill set to expertise.

this chart shows the answer to the beginning of the DEPRESSION; it is NOT a confirmation is is an event in the order of events.

JUN/JUL of 2006 is where the non direct econometric effects are taking place overetly.

In marginal analysis all the "news" is in by this time.

The motivation of the financial industry, politicians and money makers is to forfeit integrity since it is inconvenient.

As expert traders we see just plain opportunity for trading at higher money velocities. expert traders have IMMUNITY to Depressions since they are neutral biased and fully mentally differentiated.

Marginal analysis shows that there is an acceleration going through the region previously prescribing the range of performance of the financial industry and the banks and their "securitizers and their rating serfs.
 

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the Depression, in terms of the pattern is well synchronized with the 1929 depression as shown in many of the comparitive normalized super imposed curves.

In the pattern there are three adjustments that are made after the point 3 appears. VE, expansion and fanning. All are involved in getting to the gap.

Look at this period relative to the gap we are dealing with and eliminating. One is a "before" and the other is an "after".

By dealing with the slow moving Depression we can set up a mental proclivity of dealing with "before and dealing with "after". during before we are making money; during After we are inefficient in our timing becasue our minds have not reached an effective and effifient state due to lack of personal trust within ourselves.

I pointed out how the three adjustments go through shutting down as alternatives after point 3 in a pattern.

I focussed on the Bull retrace of the Depression which in Depression fractal terms was the move from point 2 to point 3.

The Bull retrace itself had an inital point 1, 2 and 3. Look at the early and central months of 2009 on this ilustration.

Make as note that the context for possible VE's comes to an end. The leading indicator of price is the major mental differentiating clue.

The Depression context is the non dominant paterrn segment that is running from point 2 to point 3.

The paradigm shift from the CW is very dramatic at this point.

Decling volume during the time from point 2 to point 3 was named a Bull Retrace of a "recession". CW folk lore leads to thinking that a recession will be over soon.

Our view of the adjustments of the pattern sees and understands that the potential adjustments are being eliminated. At one point 01SEP09, I reported to you at that time that we had passed a significant milestone and I rated the significance of the milestone.

You now see that as an annotation of a new point 2 on a fanned parallelogram for the final stages of the trip from point 2 to point 3.

the point here is to examine how a person has personal trust of his mental processes and, in particular with respect to various portions of the pattern. The before is under consideration with respect to my personal trust of my metal differentiation for that period. I am working up to the gap period and how establishing a context from one end to the other of the nested fractals contributes to developing personal trust of oneself through work.

I do not regard commentray from detractors as any form of heat relative to how functional my mind is. They are simply airheads blowing humorious smoke with a low reynold's numbers.

Next we will examine the "efficacy" of adjusting parallelogram using the three adjustments. It will be done as we eliminate "confirmation" as an aspect of critical thinking using a differentieated mind.
 

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