Thanks Oddiduro.
Your feedback as to where I may be misstating things would be helpful. If channels make 3x the daily range in the ES then I want to know how to use them for that purpose.
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Jack Hershey Method: Channels
- Thread starter Chicken Little
- Start date
Thanks Oddiduro.
Your feedback as to where I may be misstating things would be helpful. If channels make 3x the daily range in the ES then I want to know how to use them for that purpose.
CL. My "angle" as you put it is simple and oft repeated. The study of Jack is heuristic. Further, I would wish that all of ET, and all that I trade against, would follow him.
Quote from Chicken Little:
Beginner rockets are just a subset of the Jack Hershey Method channel trading concept according to JH, so let's have a look at them.
Chicken, please keep up the good work! Maybe you can start a few other threads concerning Jack's demanding methods? Or could you even post some of his cooking recipes, too?
Oddiduro:
These channels are drawn using the following logic:
Two pairs of bars constitute the minimum channel.
On a new channel the first line is drawn in the new direction by connecting point 1 to the min/max of the bar pointing in the new direction. Then a parallel line is placed from the min/max of bar 2.
For example, the channel is downward sloping i.e., as x increases y decreases. On the first bar to exceed the high of the previous bar a new channel is drawn. The point 1 is the low of the previous bar and the first line is drawn between the low of the previous bar and the low of the current bar. Then a parallel line is draw from the top of the current bar.
If the channel is widened, a new parallel is drawn from the min/max of the bar widening the channel.
These channels are drawn using the following logic:
Two pairs of bars constitute the minimum channel.
On a new channel the first line is drawn in the new direction by connecting point 1 to the min/max of the bar pointing in the new direction. Then a parallel line is placed from the min/max of bar 2.
For example, the channel is downward sloping i.e., as x increases y decreases. On the first bar to exceed the high of the previous bar a new channel is drawn. The point 1 is the low of the previous bar and the first line is drawn between the low of the previous bar and the low of the current bar. Then a parallel line is draw from the top of the current bar.
If the channel is widened, a new parallel is drawn from the min/max of the bar widening the channel.