This post is on part IV Making Money. By going to the goal of trading and building an approach for taking trades, it may be possible to ascertain the "why" of a lot of the tooling used to make money.
three tools will be mentioned in this post: the sweeps chart, the volume monitoring chart and the basis of the relationship of volume and price bars to the market PACE.
This is a repeat text since I lost the text for some reason the first time I wrote it.
The sweeps chart is nine tables that illustrate going from coarse to medium to fine in the process of MADA.
the volume monitoring chart shows the path of volume from the beginning of a bar to its conclusion. Samples are taken and plotted about 10 times during the volume bar formation.
Two matrices are used to record the realtionship of price to PACE: volatility crossed with PACE and overlap crossed with PACE.
PACE is done with a record taken from 1600 most recnt bars and decils are the basis of the PACE divisions: VDU, DU, Low, Medium. High and Extraordinary. The most recently posted chart shows the rainbow of the PACE deliniations.
As a result the two matricies show vertial and horizontal Gaussian distributions on each matrix. The mode and mean is well defined for all columns and rows in each matrix.
Logging is done during each bar's formation while trading and doing MADA.
On the volume display you see the rainbow of the market PACE. Also you see the "shadow" of PRV as the actual volume accumulates.
The trader uses a trading strategy based on his accumulated skills. Here in this post, I work through using SCT to trade k200 on several skill levels by going through the day's volume catenary in the CONTEXT of market pace.
The volume monitoring sheet is divied vertically into zones that are skill diffrentiations. You can review the 30 most common edges and use the sheet as a Venn diagram to define the regions for trading the various edges. The conclusion that can be drawn on a macro level is that edge traders can get in trouble when market PACE changes after their repsective entries. Almost no edges articulated deal with the shift is risk as a consequence of market PACE change. That is years into the future for financed research.
On the posted annotaed chart, we saw the beginner and more skilled traders enter on the open in bar 1 or bar 2. The trade was short. Lets delve into the tools used to trade K200: MADA and the finite sets of each part of MADA.
The VE caused the entry under E volume (use the first letter or couple of letters to differentiate PACE for logging). A trader knows where price is on the nested fractals. As the bar opens its relationship to the parallelograms on each fractal is clear. The future price volatility is also clear from the 1600 bar lookup that is updated bar by bar.
Where on bar 1 or 2 is the entry taken. for reference you can refer to typical prints of mine with respect to the moment I determine to enter in SCT trading on the ES. the K200 is no different in terms of the open entry. You can note that I am working through degapping still as I deal with being in the market and on the right side of the market. think of it as like a traffic light chaning as the market opens and you proceed confidently as you move through the intersection following the rules and regulations of being a driver.
Long is the trade for experts and it is short, a little later for lesser skilled and at the time of the expert's first reversal. this has been narrated in this thread previously. Go through your 3 ring binder, locate the narrative and hi-lite it as a reference. You can also add notes on the back of prior pages.
With E volume known 12 seconds into each bar and displayed as a shadow, you know how the bar is going to turn out immediately. Volume is leading price as you see.
After the entry, you are looking for the order of events to unfold. For an expet he knows that he knows he is going to reverse on the VE appropriately. The beginner is required to get organized and settle into the day with his engine hitting on all cylinders.
Everyone is probably able to conclude that the bar is going to be labelled with respect to price and volume according the the ordr of events. after all the labelling to be used is already in the log at some point in the bar.
What is the bar relative to its prior bar; it has changed sevral times. Wecome to trading. I believe as you read this you are getting the message about "knowing that you know". Leaving the intersection is easy as you follow the signal from the traffic light. you drive defensively and SWEEP the scens according to a routine. IT is DEFINITELY NOT OODA.
IT IS a MADA experience. When you do MADA you do an informal MADA. You do not hypothesize and test the intersection. Instead, you take certain and sufficient data by monitoring; you get the analysis element form the finite driving set of options and use the CORRECT one for the situation by DECIDING. Your behavioral action relfects this decision. In rapid fir you repeat MADA over and over as you drive.
In trading, your skill set determines how you trade. You enter when you know you know not before. You hold doing MADA as long as you know you know as you procede through the order of events of your skill level.
Ends of patterns is where trades occur. The purpose of the trade is to be on the correct side of the market. The trade window opens, stays open and then closes. On the referenced chart a beginner holds through a series of ffaster fractal ftt's to get to the FTT of the trading fractal. An expert has done a tradepriorto the short trading fracatl beginning pattern. he trades on each point of the trading fractal: 1, 2, 3 and FTT.
So far the annotaed charts for that short had volume shortsightedness and the RTL could not be determined on the othr annotated chart. this puts these potential traders in a place where they get a signal from the market that tells them one thing: they do not know that they know at some point. when you do not know that you know you sideline and simply go to work on getting back on tack.
When you are back on track, you go into th market and keep on track.
A beginner is going to an FTT. An expert is going to an ftt.
This is an overview. Next I will get down to details. the NLP picture is a picture of using tools to trade and always knowing that you know on your skill level. K200 is very tradable; SCT on K200 in an application of the PEP.
