IT Term

Quote from BA_Trader:

I guess you just look for sequences and flaws... this to me is the
difficulty with rockets and icebergs -- sequences and flaws. The
market at any moment is more like an impressionist painting
than a parts list for a military vehicle.

I'm working on trying to get directional bias and momentum
of that bias from longer time frames and then using this info to
figure out the context for NOW. My goal is to to be able to
quickly 'get a feel' for bias and then use this to filter whatever
signal I'm using.

The ultimate goal would be applying this to IF1/IF2 -- because
IMO this strategy is way better than rockets and iceberg.
IF1/IF2 really has to be filtered tho because it gets whipsawed
terribly in stalls... and it has some problems with some long bar
situations.

Good trading to ya tomorrow

JT
More...


BA
A warning about if2 trading. I spent to much time (skipping steps) and trying to IF2 trade. IF2s particularly the ones that represent the appropriate number of stops back (for the market pace) are very important but IF2 trading is tough. the reason as I see it is that you are looking at the results without the reason. the meat is what you need to make your decisions based on, specifically volume (PRV:cool: ) I am sure teh YM-Indu spread and DOM will play very important roles in the process of scting (carving). I personally can't 'see' them in real time yet. I believe because I haven't put them into proper context yet. to borrow your annalogy be carefull of watching the coastline when it is the
repeated interaction of water and earth that really matter.

I currently am finding context in the IT trend. This is very kewl, and relaxing. I found your post on the IT that you made on 3/16 very interesting. As I see it your channel was Newby's initial point3. If you connect the points you labeled B & C to represent the 'airplane leveling off' your Price/volume coments hold up very well. Is that how you were looking at it?

anyway just my 2 cents. Great disscussion. Heres to volitility.
 
Quote from CrescitEundo:

BA
A warning about if2 trading. I spent to much time (skipping steps) and trying to IF2 trade. IF2s particularly the ones that represent the appropriate number of stops back (for the market pace) are very important but IF2 trading is tough. the reason as I see it is that you are looking at the results without the reason. the meat is what you need to make your decisions based on, specifically volume (PRV:cool: )
More...
Cool to hear that someone else is out there trying to get somewhere with this stuff.
I agree with you about volume... I was really dismissive of volume when I first
started out (2 yrs ago) -- I think mainly because I traded equities and the intraday
volume for equities is really noisy. I learned my lesson (thanks to Jack really).

Volume is king.

Also something I've learned recently is to think about 'ghost' volume -- sidelined
volume watching and waiting to put a position on. I'm a ghost all the time :).
Ghosts make the trends go.
Quote from CrescitEundo:
...as I see it your channel was Newby's initial point3. If you connect the points you labeled B & C to represent the 'airplane leveling off' your Price/volume coments hold up very well. Is that how you were looking at it?
More...
Yup -- the PV for that IT trend was really pretty. I've also noticed that IT TL hits
tend to occur during midday -- when (by no coincidence) volume tends
to be the lowest. I used to dread those dull times but now I love them because
they give you so many clues about the current channel.

I'd be interested to hear the things you experimented with (in general)
with the IF2 stuff -- as of now I think it is a decent exit and re-entry signal
when you are already in an established 'taping' trend (ST channel traversal for
example)... but other than that :confused:

good trading
JT
 
Well... that's what you call an IT breakout. Looks like we have our preliminary LT channel.
Hopefully we'll get a full traverse to the left side... should provide good money velo$ity.

nwbprop - did you catch any of that BO?

JT
 
Now that we have nice wide IT channel(20+), we should get some nice traverses within it. Only thing left to do is take those rocket entries and ride the trend.

I might not reply to this thread much more as the objective of the thread has been accomplished. If you would like to join our chatroom, pm me.

Thanks for all the helpful replies.
 
I know nwbprop started this thread -- but I think it's
useful so I'm going to continue posting...

So... the big drop at the end of 3/19 through 3/22 was
definintely a traversal to the left side of the LT channel...
since then prices have been banging up against
downsloping R and then finally squeaking through the end.

We've basically been in an IT stall.

On Wed we finished up just poking through a R at the
end of the day... we'll see if it resumes tomorrow AM...
my gut is that it will -- but there are big problems
overhead... We have a horizontal R around 1100 -- and
the LT trend line looming.

If prices don't resume upwards tomorrow - watch out
for another traversal to the left side of the LT. We are
basically sitting right in the middle of the LT down
channel at the moment.

First order of business -- figure out which way it wants to
go tomorrow AM -- after that figure out what will be the
main opposing force -- then figure out what trading tools
to use to extract the most money from the situation.

JT
 
Quote from BA_Trader:

I know nwbprop started this thread -- but I think it's
useful so I'm going to continue posting...

So... the big drop at the end of 3/19 through 3/22 was
definintely a traversal to the left side of the LT channel...
since then prices have been banging up against
downsloping R and then finally squeaking through the end.

We've basically been in an IT stall.

On Wed we finished up just poking through a R at the
end of the day... we'll see if it resumes tomorrow AM...
my gut is that it will -- but there are big problems
overhead... We have a horizontal R around 1100 -- and
the LT trend line looming.

If prices don't resume upwards tomorrow - watch out
for another traversal to the left side of the LT. We are
basically sitting right in the middle of the LT down
channel at the moment.

First order of business -- figure out which way it wants to
go tomorrow AM -- after that figure out what will be the
main opposing force -- then figure out what trading tools
to use to extract the most money from the situation.

JT
More...

I could not have said it better. Seems right on the mark from the charts I have. It would be nice to get some great volatility if we get a full traverse on the LT channel over a failure to traverse the first pt 3.
 
Quote from nwbprop:

It would be nice to get some great volatility if we get a full traverse on the LT channel over a failure to traverse the first pt 3.
More...

As they say in basketball -- the market took the ball into trouble...
we're definitely in an IT up trend -- rising R all day today tells
that story.

The horizontal R came into play beautifully from about 11:30 -
12:30... I really didn't expect to see the up sloping R get broken
at 12:30.

This was pretty dumb of me really... range and volume dried up...
this was followed by a volume BO on all black bars (on the 1 min).

We haven't even really seen the right hand LT trend line come
into play yet today. new pt 3 coming?

JT
 
Today was pretty frustrating -- hopefully I learned a bit too...

Every time prices started to stall and volume declined I was
looking for a short. Well -- every time that happened today
it was just a new pt 3 in the ST channel. all day.

It's frustrating because it was the easiest day in the last
several. What threw me off was the *memory* of the up and
down action the last few days -- I became conditioned
(biased - which I have a problem with) to something and I
expected it.

Also I think I need to expand my concept of a channel a little
bit -- because there seems to be two modes of behavior: moving
between s/r and moving along s/r... and each of these seems
to have 1 or 2 subcategories.

At any rate -- seems we are at or near pt 2 of an IT up trend.

JT
 
Quote from BA_Trader:

Today was pretty frustrating -- hopefully I learned a bit too...

Every time prices started to stall and volume declined I was
looking for a short. Well -- every time that happened today
it was just a new pt 3 in the ST channel. all day.

It's frustrating because it was the easiest day in the last
several. What threw me off was the *memory* of the up and
down action the last few days -- I became conditioned
(biased - which I have a problem with) to something and I
expected it.

Also I think I need to expand my concept of a channel a little
bit -- because there seems to be two modes of behavior: moving
between s/r and moving along s/r... and each of these seems
to have 1 or 2 subcategories.

At any rate -- seems we are at or near pt 2 of an IT up trend.

JT
More...

If points aren't working for you, you may be interested in a chart I posted earlier:

http://www.elitetrader.com/vb/attachment.php?s=&postid=460888

If so, here's the post it's attached to:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=29005&perpage=1&pagenumber=164
 
You must log in or register to reply here.
Back
Top