Quote from callmate:
Quote from jack hershey:
I first the day begins.
You wait for synch.
You use 5,2,3 to enter
time passes and you use 14, 1, 3 to exit.
You see that the next entry is 5, 2, 3 and it's exit is on 14, 1, 3.
This is the way it works.
When you are in, the 14,1,3 takes you out OR the 5, 2, 3 makes you REVERSE.
Sometimes you have to stay sidelined since there is no 5, 2, 3 as yet to take you in.
As you see mistakes are made until you have done about 50 of these consistently. I noted two things: mistakes and extensions of holds that result from several things acting in concert to prevent an action which is not certain.
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Thank you for your comments Jack and the chart.
I understand that we enter a trade using 5, 2 ,3 stochastics crossing 50 for longs/shorts. I don't have a problem with that, however I am confused with 14, 1, 3. Am I right in thinking that for a long we exit using 14, 1, 3 @ reading of 80+ and for a short @ reading of 20 or below? I will mark some more charts and post them tomorrow morning in order to clarify this confusion.
Callmate, for a long you exit as the Slow STOCH comes out of the 80+ area. You're long, the slow stoch goes up over 80 and you hold as it's pinned up there over 80. As the slow stoch crosses down through 80, you exit. Vice versa for the short. See the green lines in my charts.
Jack Hershey â MACD and Stochastics helpers for 123 and FTT's
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Okay we have a log up and it shows 23 bars for the 7th.
You can see that the most common entry is Hold and it represents the process of making money by staying on the right side of the market.
What is now on the horizon for everyone is using things to fill the cells on the log.
Lets take one of the many columns and see what is called for. as you do the little drills I have suggested so far, they all lead to a personal vocabulary that symbolizes what is going on for each of the columns.
23 rows is a long time; it is 23 times 5 in minutes and in seconds just multiply by 60 to get all those seconds available mentally. It is a big number so there is plenty of time to fill in all the cells in each row every five minutes.
Going across the rows will be fun too. The strange thing that ccurs is that the market slows down as your pens work faster and more accurately. Naturally, you will develop hand preferences for each hand as they work in parallel. Itis like typing, a person even assigns fingers to letters and symbols doing typing. Seriously, you will have time to keep up.
The four pages of the log can be filled in to some extent ahead of the open.
the log illustrated shows the working mind of a person who goes from detail to concept. Personally, I go from concept to detail. IT makes no difference.
There is a sheet called sweeps and it goes from coarse to medium to fine. it is designed to get to hold in the simplest way possible, i. e., from general to specific. I like it because it saves work in monitoring and gets you to the D quite rapidly. It is okay to pile legos until you get to a certainty for D, however.
The example we have so far shows some details in a vertical part of the log. It is terrific to build the mind in this manner.
what we all want to do is build a vocabulary that allows us to fill in the cells accurately and completely. We are working outward from from to indicators, each having two signals. Between the signals we need to apply some vocabulary. 80+ is there and that is cool. Just add several equivalent symbols for the other parts of the range of the STOCH. starting with four will cover the bases as a beginning effort. As time passes these can be made more and more dynamic using arrows and such.
At some point you can give yourself permission to fill in the row that will be next. By doing this after you have completed all the drills requested so far, you will be moving into the near term future just ahead of NOW which is the row you can see for real.
A lot of our chart annotation goes out into the future and it does this on three specific levles for price and volume, the fundamental variables of the market.
We are exercising and running drills to be Olympic level traders. You have already heard of the performance levels as judged by people who are sitting in the stands----unbelievable and astonishing. and it is even mysterious to many.
The log ommitted to fill in the trade price values. The log is not automatic with respect to posting trade prices. by doing so a trader gets to "feel" the money being made. just fill in the prices and note that entries and exits do have a price relationship where there is always a positive "effect" in the picture.
During daily debriefing you can count the chips and compare them to what the market offered. Your execution platform does this during the day since it has little else to do but make money for you. Those in the stands get to see the results in the filled in logs you will be posting to get critiques.
I like doing critiques since they are good exercise for a 75 year old. The other fun thing is keeping up with younger people. If you see me as three times your age, you can expect me to do work three times as fast as you do.
so now we are using some rules, annotating to stay on the right side of the market, doing logging and building a corresponding vocabulary and doing drills all the time to dig deeper into what is going on. Several of these digging drills are tasked to you at this point.
One result is a matrix which crosses the STOCHS with MACD so that the path of the market operating point becomes clear right after you get the columns and rows of the matrix set up properly. At any time you will always know, in this finite array where the market is, what is next and how the timing works to make the changes. you will begin to notice that the market sluggishly moves with the least effort to get from one place to another. It does not move diagonally as much as it moves either laterally or vertically.
As your mind builds itself around how the market works, you become a partner with the market.
From now on each day we get to see signal annotation and logs and debriefing commentary.
All of the parts merge to become the whole.
This is just like using trendlines to project and to make channels which contain signals. You get the same answers, too.
You can see that the most common entry is Hold and it represents the process of making money by staying on the right side of the market.
What is now on the horizon for everyone is using things to fill the cells on the log.
Lets take one of the many columns and see what is called for. as you do the little drills I have suggested so far, they all lead to a personal vocabulary that symbolizes what is going on for each of the columns.
23 rows is a long time; it is 23 times 5 in minutes and in seconds just multiply by 60 to get all those seconds available mentally. It is a big number so there is plenty of time to fill in all the cells in each row every five minutes.
Going across the rows will be fun too. The strange thing that ccurs is that the market slows down as your pens work faster and more accurately. Naturally, you will develop hand preferences for each hand as they work in parallel. Itis like typing, a person even assigns fingers to letters and symbols doing typing. Seriously, you will have time to keep up.
The four pages of the log can be filled in to some extent ahead of the open.
the log illustrated shows the working mind of a person who goes from detail to concept. Personally, I go from concept to detail. IT makes no difference.
There is a sheet called sweeps and it goes from coarse to medium to fine. it is designed to get to hold in the simplest way possible, i. e., from general to specific. I like it because it saves work in monitoring and gets you to the D quite rapidly. It is okay to pile legos until you get to a certainty for D, however.
The example we have so far shows some details in a vertical part of the log. It is terrific to build the mind in this manner.
what we all want to do is build a vocabulary that allows us to fill in the cells accurately and completely. We are working outward from from to indicators, each having two signals. Between the signals we need to apply some vocabulary. 80+ is there and that is cool. Just add several equivalent symbols for the other parts of the range of the STOCH. starting with four will cover the bases as a beginning effort. As time passes these can be made more and more dynamic using arrows and such.
At some point you can give yourself permission to fill in the row that will be next. By doing this after you have completed all the drills requested so far, you will be moving into the near term future just ahead of NOW which is the row you can see for real.
A lot of our chart annotation goes out into the future and it does this on three specific levles for price and volume, the fundamental variables of the market.
We are exercising and running drills to be Olympic level traders. You have already heard of the performance levels as judged by people who are sitting in the stands----unbelievable and astonishing. and it is even mysterious to many.
The log ommitted to fill in the trade price values. The log is not automatic with respect to posting trade prices. by doing so a trader gets to "feel" the money being made. just fill in the prices and note that entries and exits do have a price relationship where there is always a positive "effect" in the picture.
During daily debriefing you can count the chips and compare them to what the market offered. Your execution platform does this during the day since it has little else to do but make money for you. Those in the stands get to see the results in the filled in logs you will be posting to get critiques.
I like doing critiques since they are good exercise for a 75 year old. The other fun thing is keeping up with younger people. If you see me as three times your age, you can expect me to do work three times as fast as you do.
so now we are using some rules, annotating to stay on the right side of the market, doing logging and building a corresponding vocabulary and doing drills all the time to dig deeper into what is going on. Several of these digging drills are tasked to you at this point.
One result is a matrix which crosses the STOCHS with MACD so that the path of the market operating point becomes clear right after you get the columns and rows of the matrix set up properly. At any time you will always know, in this finite array where the market is, what is next and how the timing works to make the changes. you will begin to notice that the market sluggishly moves with the least effort to get from one place to another. It does not move diagonally as much as it moves either laterally or vertically.
As your mind builds itself around how the market works, you become a partner with the market.
From now on each day we get to see signal annotation and logs and debriefing commentary.
All of the parts merge to become the whole.
This is just like using trendlines to project and to make channels which contain signals. You get the same answers, too.
Still laughing. That entire post was right on the mark in every way. I will work on Friday's log and fill in more columns. I think replay will be needed for the price column. The shorthand someone else used for MACD in one of the logs I posted earlier was: N, d, c, and e with the plus (+) or minus (-) sign occasionally. I'm guessing the "d" stands for divergence and the "c" for convergence. The "e" is probably "entwining". Anyone know about the N? It's on page 20 at the bottom - "filled in log".
From the early 80's to about June 2006 there was another mathematical effort that had the consequences we see today (rendering many created instruments illiquid).
Hi Jack and welcome back. A couple of questions:
(1) What was that mathematical effort?
(2) Your seven fractals are: Quarterly, monthly, weekly, daily, 60m, 15m and 5m. Correct? Sometimes I have seen you mention 30m as a useful fractal. Are there particular circumstances when this is so?
TIA
lj
Hi Jack and welcome back. A couple of questions:
(1) What was that mathematical effort?
(2) Your seven fractals are: Quarterly, monthly, weekly, daily, 60m, 15m and 5m. Correct? Sometimes I have seen you mention 30m as a useful fractal. Are there particular circumstances when this is so?
TIA
lj
Neutral.
lj: The mathematical effort was the explosion in derivatives and more recently credit derivatives, which make nice fees for the originator but have the habit of becoming illiquid when you most need them. Pool extraction is the humble, low-tech alternative and it will always be there.
Thanks P1. Disjunctions - the bane of the traditional quant. Experiment always leads theory and one forces the latter on the former at one's peril.
If you're in the mood could you possibly comment on a pair of questions I asked previously and to which there was no response? I think these are on topic as they do relate to the A/D aspect of things which is what the stochs, by definition, are intimately concerned with. If callmate feels otherwise, please delete.
With respect to the apparent association between pace (= money velocity = the rate of change of price) and harmonic wave form are there "real market" situations where a sufficient pace can convert a triangular wave form into a square wave form or is it that a triangular wave form by its very nature dictates that the pace cannot be so fast as to convert it to a square wave form?
Similarly can an even harmonic (1,2,4) wave form be exposed to "real market" conditions such that by the reduction of the amplitude of the second and third components of the wave form (the "2" and "4"), the "square wave" appearance can be transformed into a "triangular wave" appearance? It is, as pointone has shown, "theoretically" possible to do this.
TIA
lj
Deming was an interesting man who had a habit of repeating notable quotes, often his own. He also said: "Knowledge is theory." and "Experience by itself teaches nothing." So, gasp!!, he and I probably wouldn't have seen eye to eye on some things. Wikpedia describes him as being, by profession, a statistician, so perhaps his pedantry is excusable.
lj
lj - I went back and re-read the discussion Spyder and I had on harmonics last year in his thread. I've nothing to add to the conclusions we came to there i.e it is interesting and comforting to know how and why price moves but to make money it is sufficient to focus on what price is doing.
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