As Ive been annotating the E-minis chart, Ive run across two things. One is an Outside Bar and the other is a Formations FBO.I have searched for both and cant seem to get a definition on either. When I see Formation FBO it leads me to believe there is also a Formation BO. What's the difference, can someone please briefly explain these two things? And also how they look in terms of Guassians?
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Iterative Refinement
- Thread starter Spydertrader
- Start date
Quote from Spydertrader:
Spyder, did that 10:40 decreasing black bar signify "change" for you or "flaw" or equal weight was given to both possibilities?
Price moving in the dominant direction on decreasing Volume signals an expectation of change. See Jokari Window.
At what point would you have reversed or entered short? Mid 10:45 bar on red prv?
When Price moved below the Open.
- Spydertrader
I'm confused here. Let me try to walk through it and see if I'm correct.
10:40 bar : as this bar approaches the LTL, we do have permission to go look at the YM, so we might have reversed or entered short at this bar when receiving a signal from the YM? Is this correct? (and also when we saw that the volume of this bar is already lower than the previous one)
Presuming the above is true, why would you want to wait to reverse or short when price moves below the open of the 10:45 bar? (unless we missed the change signal on the 10:40 bar) Besides, the volume of the 10:45 bar is higher than the previous one...
chart in question : http://www.elitetrader.com/vb/attachment.php?s=&postid=1800329
Thursday Dry Up
ATV AVR BKI BONT CCC CMED CUB DBTK DSL FED FMCN GIGM GKK GLNG GMKT GRRF GSOL IDCC IMMR JADE JCG JRJC LDK NCMI NCTY POZN RATE SFLY SNDA SNHY TGIC TLEO TRCR VSE VSR WCG WX [/B]
SpyderTrader, I applied the directions at the end of your first journal and my list is very different from yours (only 3 in common between our two lists).
Is there a better summary of the rules than the end of journal 1? I looked at the end of all the journals and haven't found another summary.
I also tried the latest chart scripts and I get a lot more results than I do with the ones from the first journal.
I know you say to read the prior journals, I'm working may way through the first one. It is going to take me a while (thousands of posts).
Thanks
Quote from LittleMac:
As Ive been annotating the E-minis chart, Ive run across two things. One is an Outside Bar and the other is a Formations FBO.I have searched for both and cant seem to get a definition on either. When I see Formation FBO it leads me to believe there is also a Formation BO. What's the difference, can someone please briefly explain these two things? And also how they look in terms of Guassians?
Outside Bar = both Higher High and Higher Low compared to the previous bar. Formation FBO = Break Out of a Formation with Price closing back within the Formation. Formation BO means Price exited the formation and reamined outside the Formation boundaries. How these things 'look' in terms of Gaussians depends on context (e.g. increasing or decreasing Volume).
Quote from innersky:
10:40 bar : as this bar approaches the LTL, we do have permission to go look at the YM,
The above rule does not exist. 'Approaches' the LTL does not equal 'on' a LTL. Had the Bar in Question 'touched' the LTL, then you'd have permission, and as such, one might have 'seen' the change signal earlier from the YM. Unable to go and 'look' at the YM, one has no opportunity to 'see' the signal.
Quote from cunparis:
Is there a better summary of the rules than the end of journal 1? I looked at the end of all the journals and haven't found another summary.
As the process becomes more iteratively refined, improvements result. So too does your mind build the pathway's required for your own processes. No need to skip ahead. Keep reading, and at the appropriate time, you'll run across the information you seek - several times in fact. I specifically stopped placing summaries at the end of Journals to force people to read and purposefully learn, rather than, look for shortcuts.
- Spydertrader
As the process becomes more iteratively refined, improvements result. So too does your mind build the pathway's required for your own processes. No need to skip ahead. Keep reading, and at the appropriate time, you'll run across the information you seek - several times in fact. I specifically stopped placing summaries at the end of Journals to force people to read and purposefully learn, rather than, look for shortcuts.
- Spydertrader [/B]
I'm learning a lot but the problem is with all the introductory information scattered about (I just got access to the MSN group today) it's hard to piece it together.
I'll keep reading, thanks. If you can post some analysis at the end of the day that would help me to confirm what I saw.
Thanks
Quote from cunparis:
I'm learning a lot but the problem is with all the introductory information scattered about (I just got access to the MSN group today) it's hard to piece it together.
Well, no. what you refer to as 'introductory' material, I refer to as 'background' material. In other words, if you feel what I have written fails to answer the question, perhaps another type of explanation would provide clarity. 'Background' material does not imply, "Hey, I need to go read this first." In fact, many have commented (within Journal I) how much easier it was to go back and read Jack after reading Journal I.
Everything you need you'll find as you keep reading.
- Spydertrader
Quote from Spydertrader:
The above rule does not exist. 'Approaches' the LTL does not equal 'on' a LTL. Had the Bar in Question 'touched' the LTL, then you'd have permission, and as such, one might have 'seen' the change signal earlier from the YM. Unable to go and 'look' at the YM, one has no opportunity to 'see' the signal.
- Spydertrader [/B]
Oops my bad! Thanks for clearing this up. So in this case we have a FTT? Which bar is the actual FTT, the black one?
Thanks
innersky
I have a question about DU.. At the end of Journal one the entry was volume at DU by 11:00.
Today there were two stocks that took off: JRJC & DSLR. Both started taking off way before they hit DU. I saw JRJC going off in my watchlist so I checked the chart and got in but I missed the first 5% or so. Once it hit the DU I bought some more.
For DSL, I am watching but I think it's too late.
I see Lower Band Volume in the latest chartscript but I'm not sure how to use it. But now after seeing these two go up 5% without hitting DU, I think I must use the lower band??
Today there were two stocks that took off: JRJC & DSLR. Both started taking off way before they hit DU. I saw JRJC going off in my watchlist so I checked the chart and got in but I missed the first 5% or so. Once it hit the DU I bought some more.
For DSL, I am watching but I think it's too late.
I see Lower Band Volume in the latest chartscript but I'm not sure how to use it. But now after seeing these two go up 5% without hitting DU, I think I must use the lower band??
Quote from cunparis:
I see Lower Band Volume in the latest chartscript but I'm not sure how to use it. But now after seeing these two go up 5% without hitting DU, I think I must use the lower band??
Search Oddiduro's posts. He started a thread - 3 or 4 years ago - where Jack described how to trade. Read that thread. I call it 'The Oddiduro Thread,' but I am sure it has an official title (I just don't recall it). Oddiduro starts out by posting, "OK, Jack. here is a place for you to discuss your methods." (or something very similar). Flame wars immediately erupt. You'll recognize the thread when you find it.
Here is a map for you:
Learn to draw Channels.
Learn about Gaussians.
Learn Formations.
Learn what must come next.
- Spydertrader