Quote from frenchfry:
A similar situation today in the FDAX. At first volume and fractals/channels/containers/etc. seem to be in sync but then...
critique.
It is good to notice that you can begin to annotate anytime you want.
Lets say you want to trade to make money. At that point some more formal things would have to be dealt with.
Take the market open. It is a good idea to do carry over. the reason is that it minimizes risk, and particularly the risk of being on the wrong side of the market.
Drill
1. Do carry over on all three nested fractals as the opening bar is forming.
2. log he 12 column log by entering each step of the mutations of the first and all subsequent bars.
3. Do MADA to complete 1. and 2.
As you find out the answers to the three questions, you give yourself permission to enter on the right side of the market and trade the TF.
Drill.
1. Exit the market when you suspend doing 1, or 2 . or 3. above.
2. reneter the market when you catch up to the market in real time.
THe trading started on top of bar 2 going short by using the info french fry (ff) worked through. ff is making money and holding as he annotates pt of ff's short hold for four bars. ff gives back some unrealized profits by pt 3 and he feels comfortable with drawing in his firat two lines of the day.
He is looking for the reversal at the end of the TF he has drawn in. On the VE, ff knows an M1 and M2 are coming up. He takes the ride through both and does his reversal on the FTT of the accelerated parallelogram and is now long having locked in his for profit segment using the TF.
For some reason while long and at pt 2, ff draws in a fanning of the finished RTL of the first TF of the day.
Critique.
For anyone who wants to use SCT to make money, it is a requirement to do what is suggested in the drills. Being very smart is a great concept and you may live in Lake Wobegone, but to be an expert trader takes having a mind set and an emotional coherence where you are several levels into being a good meditator. Being at 80 on the EMwave pc is what is on the table. Below the neck you need Awarenss, Compassion and Wisdom as the three stages of "mindfulness". For example, a lot of traders in Tucson regularly do mindfulness, do martial arts and do dance. By doing these things for years and years and years, there is an uderstanding of the state of mind that is in the space as trading is accomplished.
I am suggesting that trading with awareness, compassion and wisdom can be just a consequence of doing drills in PEP and its applications.
By looking at the chart, very helpfully posted by ff as he works along, we can see he is not surrounding his TF on both sides with other nested fractals. By not doing carry over he does go to a risk oriented trading space.
would the FTT where the reversal was taken be better seen in a context if "acceleration had been done? Would the long trade have been seen in place of a fanning (by ff's invented rules) been omitted to forward the long second profit segment?
If a person does the MADA by annotating thoroughly, he gets to be aware, compassionate and wise. The person is in charge of himself and accepting the market's "telegraphing" its signals to him.
more later.....