Iterative Refinement

Someone asked me by PM if I use the Z Liffe as the equivalent replacement of the YM when trading the ES?

The answer is yes. The YM leads when it comes to translating volume into price movement. I believe this occurs because the contract isn't as thickly traded as the ES and price is divided into more increments. This is the reason why the YM is particularly useful around trendlines and breakouts. Turning points seem to occur at the same time so when it comes to that the YM functions more like a second opinion to me.

There is a difference between the FDAX and the Z in how trends take shape. This difference is larger then it is between the YM and ES. Point 3, FTT's and Break Outs happen at the same intervals though.

It's been useful to me as a trading tool, but I'd be very interested to learn if one of you manages to identify a better leading indicator for the FDAX. I still haven't looked at some of the smaller futures contracts such as the Bel30, CAC 40, AEX or MIB 30
 
Quote from FerdinandAlx:



The answer is yes. The YM leads when it comes to translating volume into price movement. I believe this occurs because the contract isn't as thickly traded as the ES and price is divided into more increments. This is the reason why the YM is particularly useful around trendlines and breakouts. Turning points seem to occur at the same time so when it comes to that the YM functions more like a second opinion to me.
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This is exactly what I've been thinking, so cool you actually thought for yourself. you're the first I've seen around here!
:cool:
 
Quote from astral:

Please don't let your ego respond to this comment.
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Oddly enough, my ego plays no role in this discussion, nor do I feel the need to project any issues. You have more than enough issues for any one person - a fact, no doubt, people have pointed out to you in the real world. Lastly, 'thinking outside the box' isn't what you have contributed today, no matter how you wish to spin it.

You made an error, but so what?

The important part is you have repeatedly attempted to rationalize this error away, as you have done many times in the past. And that, is a lesson everyone needs to learn not to do.

Again, thank you very much for proving my point (several points in fact). As I said before, even if you fail to learn the correct lesson from this exchange, my hope is others will walk away from today without having to repeat the same mistakes.

Your contributions continue to provide valuable lessons for all - just not in the way you intended.

- Spydertrader
 
Quote from astral:

...so cool you actually thought for yourself. you're the first I've seen around here!...
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Amazing! How clueless is this statement.

Do you stand in front of a mirror all day?
 
Quote from astral:

This is exactly what I've been thinking, so cool you actually thought for yourself. you're the first I've seen around here!
:cool:
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Hey astral,
This thread is for people learning the Jack Hershey method, not the astral method. Your comments do nothing to promote that goal, in fact you are a detriment to that end by wasting mine and other peoples time with your post. Please start your own thread, learn how to be profitable, and THEN provide your results. At this time I'm sure that you have not done 1/1000th the valuable teaching that Spydertrader had done, and I for one wish that you would stop trying to hijack this thread for your own amusment.

sscott
 
Hello all,
Today was a really good day. I exited of of GSI for +20% , which was a GREAT easy trade. I had only given the chart a cursory glance, but price and volume were just too obvious to ignore two days ago.
I am also learning to pick out mistakes and get out of them quickly. I made several today, but nothing too costly. There was an interesting one which resulted in a reversal which proved itself profitable, at least for today.
Attached is the daily chart for GIGM. It was in DU today and hit DU volume early on. It was on its way down a sharp decline, and this decline was part of the dominant traverse of the large Green channel and the non-dominant of the Blue channel. So I shorted the stock. High red volume, and the chart seems to suggest that the stock is on its way down two channels.
Then 10:15 hit. The stock started back up. I watched it carefully, since I had bought the stock early. It was headed steadily upwards. Once it was at +.15, I bought to cover and took a careful look at the daily chart. It looked like it was going to just keep on going. Volume was still high, and everything was screaming that the trend change had been confirmed. The stock ended at +.77.
I decided to hold for two reasons.
1) The stock seems to have broken out of it's steep downward channel. There has been decreasing red volume for awhile, and now the black volume was really strong.
2) The stock may also have just had an FTT for the Green channel. If so, the stock has significant room to rise.

Anyway, any comments. especially corrections, are greatly appreciated.

JF
 

Attachments

Hey all again,
Attached is the daily chart for CSS. This was another stock I had my eyes on today. It was in DU, but it was down early. I kept my eyes on it, starting around midday, as volume was still good, and it was on its way up. As I examined the daily chart, I saw two channels fighting one another. There is the smaller down channel within the larger blue channel. There had been several Blue FTT's but the stock had yet to BO of the Blue Channel. I decided to buy into the stock when it was about even. It appears that Volume and Price have dictated which channel has won. It ended up .66.

Again, any corrections and comments are appreciated.

JF
 

Attachments

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