I am getting my butt handed to me on a daily basis!

Quote from jack hershey:

Attached is the drawing procedure
More...
I looked at your VE drawing instructions and had a laugh because it reminded me of a discussion we had a few month ago.

Do you remember this:
http://www.elitetrader.com/vb/reply.php?s=&action=newreply&postid=3870787

And now I read this:
"...To accommodate a VE, accelerate the channel by using the VE bar as the first bar of a greater sloping channel. Retain the original bookmark , however..."

So basically what I did in that chart was correct. You accelerate the channel AT the VE bar and NOT: Go back to Pt 3 and start to draw an accelerated channel! :p
 
The last two system sheetsfollow as shown on the first overall sheet.

To understand more easily print both.

The money making Actions come from using the KISS sheet (Trading Decisions). the principle money making action is "holding".

holding happens in step 1. The reversal is mentioned as step 2.

To see how to take another lap you use step 3.

Here is the strategy for a person beginning to strade using this stuff.

Most cannot understand the cycle of trading nor how a trend ends. to avoid having to understand both of these things, I have come up with a fool proof (dummy) oriented set of steps.

In terms of trends, it is best for a person to use a "confirmation" approach if following logic fails. So what confirms a trand has completes and at the same time makes as much of the long diagonal of a parallelogram?

Books and academic papers and posts have not addressed this before. By letting the BO of the RTL pass it is definite that a trend ended. But this does not make much money. to have a "second chnce" at getting the money, a trader has to pick a more propicious place to take profits. This place is used often by traders but without reason.

I chose the retrace ending of the next opposite trend. I know most people cannot tell a retrace from a reversal so I had to not use any of that knowledge either.

The hold ends at point 3 of the next trend. Also this is a reversal INTO the ensuing trend.

So the trader ID's the BO of the rtl since a beginner has this capability. Then he goes back and names the prior bar the ftt (point 1)

I am attaching a sheet to this post. this sheet is the kiss sheet. It tells the person how to find the place on the 30 minute chat to carve the point 3 turn. It is done by understanding the formation of the legs of a 30 min bar. If you can annotate a 30 min chart you can find a point 3. Since you know the bar tht the point 3 will be on, you can use the KISS sheet to carve the appropriate 30 minute bar.

The sheets mentioned give you the synchronization of all the information. to make it possible to take the full offer of the market, I had to intro duce confirmation and then the second chance to make the money. The only other alternative was to insist that a person learn to do the deductive process and that is really a design and development subject it turns out.
 

Attachments

Making Money actions is attached.

there is one other sheet that handles some conventions for "anticipation". It is just a convenient add on that I find has helped learners. Each part has a reference from recent trading days.
 

Attachments

Quote from frenchfry:

I looked at your VE drawing instructions and had a laugh because it reminded me of a discussion we had a few month ago.

Do you remember this:
http://www.elitetrader.com/vb/reply.php?s=&action=newreply&postid=3870787

And now I read this:
"...To accommodate a VE, accelerate the channel by using the VE bar as the first bar of a greater sloping channel. Retain the original bookmark , however..."

So basically what I did in that chart was correct. You accelerate the channel AT the VE bar and NOT: Go back to Pt 3 and start to draw an accelerated channel! :p
More...

There are now two ways on the table.

I gave you the more cautious one first.

This approach in this series is as simplified as I could make it to help out in assuring successful trading.

Here at this time, I have noticed that people get into fear and anxiety about how to recognize the correct places to do things properly. By accommodating the "soft" or weaker parts of reasoning, I feel another portion of persons can move to a successful orientation.

Trading 5 minute charts takes a lot of rigor and stamina. So I backed off to the 30 min chart as in trading stocks.

I compromised trading ftt to ftt. If I can present a way to get to pt3 to pt3 trading quicker on an exhaustion of momentum I just do it.
 
Quote from jack hershey:SNIP
n+1 is the name for the NEXT bar.
In the sub fractal (the T2P to T2F space (band); I required that the band, once established, be tested on the NEXT bar.

True means the volume is between or on the line of the band. I call this band the C band.

False means another name for the volume bar must be determined. I use P3F for this bar's false. P3F stands for the fact that the trend is not finished (it has failed to finish). There is more to come in the trend.

There are two other n+1 tests.
More...
The above is for EE, G, correct? The other two n+1 tests are for EEs, Ka and Kb if I'm reading the B through K bands table correctly.

This may seem like a question that is ridiculously simple, but when you've gotten through a series of price bars and have successfully labeled each of the volume elements (P1 through T2F) and have not gotten to an EE, you basically create an EE of either P3P or P3F, right? P3P is used if the next bar (n+1) has greater vol than the bar assigned as T2F (trend completed). P3F is assigned if the next bar (n+1) has lower volume than the T2F bar and not less than T1 (trend NOT completed). Am I understanding this correctly?

I'm asking because EEs G and Kb are not on the Modrian Table, but Ka is as an n-1 in SetA and an n event in SetD. P3P isn't listed, but it's the ultimate C Turn, right?
 
Good wrap up questions for all the bands.



Quote from smwbbe:

The above is for EE, G, correct? The other two n+1 tests are for EEs, Ka and Kb if I'm reading the B through K bands table correctly.

Correct

This may seem like a question that is ridiculously simple, but when you've gotten through a series of price bars and have successfully labeled each of the volume elements (P1 through T2F) and have not gotten to an EE, you basically create an EE of either P3P or P3F, right?

Correct

P3P is used if the next bar (n+1) has greater vol than the bar assigned as T2F (trend completed).

The bar is tested. any result is possible. Often it is a T2P which takes you to a N+1 test. If it is anything else, you know where you are for the next bar.

P3F is assigned if the next bar (n+1) has lower volume than the T2F bar and not less than T1 (trend NOT completed).

Correct

Am I understanding this correctly?

I'm asking because EEs G and Kb are not on the Modrian Table, but Ka is as an n-1 in SetA and an n event in SetD.

Its like the NY social register. everyone tried to get listed but some do not make it.

P3P isn't listed, but it's the ultimate C Turn, right?

It is one turn. I wish it could have been the ultimate c turn. I was banking on it being a neat type turn.
More...

Congrats.
 
Perhaps another about the bands…
Quote from jack hershey:
The bands have Alphabetical names and are named in that order after the PP set.

The sub set labeled PP stands for Pre Primary. The PP subset is mostly very early in the formation of trends. Most all of such are on the first of the three legs of a normal trend where something intercedes and ends the trend. The types of intercessions include:
1. Like elements accelerating.
2. The new element coming between (in terms of volume contracts) two prior of like kind.
3. On a price bar called Outside Bar (OB) a peak-trough combo on one bar.

For the other subsets, bandwidth is used as the general modus. Contexts come and go as a trend moves forward.

Since the first move of a normal trend takes volume elements P1 to T1 to P2, this forms the A band between P1 and T1 in volume. (This is going from point 1 to point 2 in ‘channel’ geometry.)

Each new element of the volume pattern forms a new narrower band up through band C.
*Band F is "outside" of band C.
**Band G is a singleton for P3F.
***Band H is "outside" of band F.
****Band J applies to bar 78 where by advancing one peak the bar becomes a P3. (Known as a P3 Pass or P3P for short)
*****Band K is for triplets of T2P's and T2F's.

I noted all these things to make a lot of implicit stuff more explicit.

With these subsets, the expert trader can remain focused and it allows a person to take the full offer of the market by doing hold/reversal trading as an alternative to the beginner and advanced beginner levels where entry/exit betting and hoping trading abides.
More...
I was hoping you could further clarify band K - Ka and Kb. The explanation above indicates that they represent triplets of T2Ps and T2Fs. I'm a little confused because the PP Sheet indicates a description of 3 T2Fs for PP6a and the description on the B through K Band sheet gives a description of PFP and FPF for Ka and Kb. Would you kindly help me to better understand EEs, Ka and Kb?
 
Quote from smwbbe:

Perhaps another about the bands…

I was hoping you could further clarify band K - Ka and Kb. The explanation above indicates that they represent triplets of T2Ps and T2Fs. I'm a little confused because the PP Sheet indicates a description of 3 T2Fs for PP6a and the description on the B through K Band sheet gives a description of PFP and FPF for Ka and Kb. Would you kindly help me to better understand EEs, Ka and Kb?
More...

In trend trading, a person anticipates by using tools. trend following does not work because it is a lagging approach.

In a normal trend a minimum of everything occurs. The trend requires three moves to exist.

To make money the compromise is to choose a trading fractal that has a high yield but is not too fast that human fear, anxiety and anger comes into the picture due to human foibles.

This means the third move of a normal trend deserves more attention than the first two moves.

Thus, the two sides of the third move have very detailed naming. Besides this advantage, the third move has to have a most detectable ending. Hence the C band pass as an n+1 test.

But often this third move, as narrowed as it is, can have some machinations that need to be handled.

two possible cases come into view: the T2P to T2F to T2P case and its follower the T2F to T2P to T2F. Notice three things and also notice it is a sandwich of alternation and NOT repetition.

T2P's and T2F's are created by the independent variable test procedure. Just as the n+1 test was applied to the C band, The formation of the triplets sets up another potential for C band tests named K's. For emphasis, the context is the third move of a normal trend which gets special care and handling.

On the n+1 bar of the triplets, the test is the C band pass test. A P3F can result.

One exciting aspect of this is that we are chatting about what is going on when all of the "normal" peaks and troughs have been tested in a trend. We are expecting that a rather lengthy trend has come to pass and it is very near exhaustion as a trend.

There are several escape routes since a lot of peaks and troughs are "in force" on the independent variable. They can do two things: kill the triplets and extend the trend.

Also there is the matter of the price system called "failsafe". Its purpose is to allow no losses by the learning trader. This failsafe system can interrupt the measurements on the independent variable.
 
Quote from jack hershey:

In trend trading, a person anticipates by using tools. trend following does not work because it is a lagging approach.

In a normal trend a minimum of everything occurs. The trend requires three moves to exist.

To make money the compromise is to choose a trading fractal that has a high yield but is not too fast that human fear, anxiety and anger comes into the picture due to human foibles.

This means the third move of a normal trend deserves more attention than the first two moves.

Thus, the two sides of the third move have very detailed naming. Besides this advantage, the third move has to have a most detectable ending. Hence the C band pass as an n+1 test.

But often this third move, as narrowed as it is, can have some machinations that need to be handled.

two possible cases come into view: the T2P to T2F to T2P case and its follower the T2F to T2P to T2F. Notice three things and also notice it is a sandwich of alternation and NOT repetition.

T2P's and T2F's are created by the independent variable test procedure. Just as the n+1 test was applied to the C band, The formation of the triplets sets up another potential for C band tests named K's. For emphasis, the context is the third move of a normal trend which gets special care and handling.

On the n+1 bar of the triplets, the test is the C band pass test. A P3F can result.

One exciting aspect of this is that we are chatting about what is going on when all of the "normal" peaks and troughs have been tested in a trend. We are expecting that a rather lengthy trend has come to pass and it is very near exhaustion as a trend.

There are several escape routes since a lot of peaks and troughs are "in force" on the independent variable. They can do two things: kill the triplets and extend the trend.

Also there is the matter of the price system called "failsafe". Its purpose is to allow no losses by the learning trader. This failsafe system can interrupt the measurements on the independent variable.
More...
Thank you so much for the thorough explanation. Now the PFP and FPF descriptions mean something to me.

Any chance you would upload your chart from today? Fully annotated charts are such a great learning tool. Thanks again…!
 
You must log in or register to reply here.
Back
Top