Iterative Refinement
- Thread starter Spydertrader
- Start date
Today was harder to anticipate, with the gaussians switching back & forth. Not unexpected for the day before a holiday...
At least I got today's date right...
At least I got today's date right...
ES Daily Chart March 20 2008.
I still need historical data. Gave OT a try and had no luck with it.
Picked up the trendlines from ESH8 and copied them and the gaussian movement from that contract.
Will annotate everything from this point on in the ESM8 contract with detail.
Wanted to get some daily charts posted and this is all I have right now.
The price bars are colored to match HH and LL's. Have not matched the volume bars as of yet. Will take care of that next.
Last pink channel may change as I get more bars into the contract.
I still need historical data. Gave OT a try and had no luck with it.
Picked up the trendlines from ESH8 and copied them and the gaussian movement from that contract.
Will annotate everything from this point on in the ESM8 contract with detail.
Wanted to get some daily charts posted and this is all I have right now.
The price bars are colored to match HH and LL's. Have not matched the volume bars as of yet. Will take care of that next.
Last pink channel may change as I get more bars into the contract.
Quote from cnms2:
This is an opportunity to ask for guidance from our old friends STO and MACD.Jack points that STO 5,2,3's 50% xo is a leading indicator for volume increases.
The answers you seek do not reside among the indicators. Take a look at the chart you posted. Note how it remains static - as no additional data comes in. In real time, a 50% crossover does not always signal a move in the signaled direction. Sometimes, that 'flapping' stochastic and MACD (in real time) crosses back. Again, if one wishes to follow the path of these things, then review easyrider's posts. He used the Stochastics and MACD in order to trade 'Rockets' as described by Jack.
Note also (same chart, different area) how Price moves a good distance before the crossover takes place.
Lastly, find a large 'gap' day. Note how both The Stochastics and The MACD find themselves way off the market for quite some time. On 'gap' days, the market 'bakes into the cake' the 'gap' for the number of bars used to create the indicator. So, for the 5,2,3 - 20 minutes. For the 14,1,3 - 70 minutes. And the MACD? Do the math.
You know Jack hand drew charts for Forty Years before registering for Qcharts. He did not have indicators on those hand drawn charts. I've seen them. They contained Price, Volume, Channels and Gaussians.
Price and Volume. That's all anyone ever needs.
- Spydertrader
P.S. Just to be clear ...
If you choose to enter off indicators, you've chosen to learn to enter after anyone who uses Price and Volume.
I've just interjected this ESM8 daily chart with indicators as a possible tool to look at a market that doesn't offer volume data.
From time to time I add to and remove from my charts Jack's indicators. When I have them I find myself not using them in my trading decisions. When I don't have them I find myself, especially during after-market, or when looking at daily charts, missing their "right side of the market" confirmation power.
I actually see those indicator crossovers as dominos that fall after several others, after the optimum trading point, more like confirmation dominos. Also, those signals seem to kind of pull you back from over trading, keeping you on a more manageable trading fractal.
Currently, I keep those indicators on my daily charts, but I've recently removed them from my intraday charts, especially as I've started to give more importance to internal formations, mainly as a consequence of our recent Saturday evening discussion in this forum.
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If I may, I'd like to use this opportunity to ask a question about the gated access to the YM. An ES forming pennant opens the gate to look at YM. The end of bar BO closes this gate. My understanding is that if the price gets back inside the previous bar this gate re-opens. Is it correct? Thanks!
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Also, I didn't really get your remark about the chart I've posted remaining static. Would you please explain what you meant by that? Thanks!
From time to time I add to and remove from my charts Jack's indicators. When I have them I find myself not using them in my trading decisions. When I don't have them I find myself, especially during after-market, or when looking at daily charts, missing their "right side of the market" confirmation power.
I actually see those indicator crossovers as dominos that fall after several others, after the optimum trading point, more like confirmation dominos. Also, those signals seem to kind of pull you back from over trading, keeping you on a more manageable trading fractal.
Currently, I keep those indicators on my daily charts, but I've recently removed them from my intraday charts, especially as I've started to give more importance to internal formations, mainly as a consequence of our recent Saturday evening discussion in this forum.
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If I may, I'd like to use this opportunity to ask a question about the gated access to the YM. An ES forming pennant opens the gate to look at YM. The end of bar BO closes this gate. My understanding is that if the price gets back inside the previous bar this gate re-opens. Is it correct? Thanks!
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Also, I didn't really get your remark about the chart I've posted remaining static. Would you please explain what you meant by that? Thanks!
Last year's Journal deliniated trading fractals in order to learn the methods in a logical fashion. Now, if one has learned the fundamentals needed, the time has come to focus on continuation or change. Set aside the 'training wheels' and 'see' how the market provides its signals on each and every bar.
Wise decision.
Of course, as we now have Lateral Movement.
Quote from cnms2:
Also, I didn't really get your remark about the chart I've posted remaining static. Would you please explain what you meant by that? Thanks!
Things look very different when data streams in on a five minute (or two minute) bar than it does when we 'look' back at the end of a day (or end of a month).
Focusing on 'sequences' represents a valid path to follow. Ask yourself, "What must first happen when the market signals change?" Then, follow the dominos from there.
- Spydertrader