You certainly are welcomed here. And if you want to assimilate the material best to simultaneously start a journal, where you can log the results of you doing drills that are prerequisites to logging via VTP.
As a circle of peers, we each have a different perspective as well as different ways of saying something. Each person’s path is a bit different. I would encourage any inspired to chime in. There are some ‘locks’ in JHM that can only be opened when one takes on passing it forward.
Starting at the basic granularity of market data:
So with the pics that you posted, doing it with your own hand makes a difference. That is the 10 price cases. Include if you will the appropriate math for each case.
Next would be the 5x5 grid of how a single bar forms.
Degapping comes later, for it’s more about symbolically linking the structural forms one builds in their mind to the realtime expression of those forms. It is more easily perceived as one degaps the RTH from the extended hours. Intraday, it’s about filtering noise from the Bid/Ask spread during an arbitrary time increment.
The market operates by an Order Of Events that take place in time yet are decoupled from time.
As for the simplicity of the Hypothesis Set, it is sublime and quite beautiful in it’s elegance but until one has other pieces of the puzzle assimilated and internalized, applying it prematurely has spun out many an impatient wanderer to a hasty and false conclusion.
The fork in the road initially is;
Show me the truth
vs
Show me the money
One requires a substantial amount of persistent and diligent work and the rewards are a bargain in measure.
Cheers!
Hi
@Sprout,
Thank you for the support and encouragement.
I have done the manual hand drawing of 10 price cases and 5x5 grid.
I was inspired by
@Simples in
https://www.elitetrader.com/et/threads/on-10-case-geometry-and-beyond.310880/page-14. Thanks
@Simples.
Refer to attached.
In a single bar, there are up to 3 moves/legs. This is due to there are 4 components in a bar: OHLC (Open High Low Close). The price movement is OH, HL and LC (Open to High, High to Low and Low to Close). If in a bar, the O=H or H=L or L=C, we don't need to count the leg.
In the same link above, there is 'the pattern'. I attach it again here.
The heading shows OOE too. As per glossary, OOE stands for Order of Event and it makes up a trend (volume based). (I attach my rework glossary. It is text-searchable, the old one is not searchable because of image based)
'the pattern' shows down trend, reversal and up trend. I'm trying to read the pattern, from left to right, from bear to bull:
1)
price is too high, market topping, ftt of bull ltl. bull starts distribution phase with high volume.
vol pane: ... to P(eak)
price pane: ftt
2)
bear in the sideline. price declines to bull rtl, yet volume is low because bull doesn't want to buy anymore.
vol pane: P to T(rough) -> 2R
price pane: prior ftt becomes pt1 of downtrend
3)
after price manages to break bull rtl, it's confirmed downtrend. bear jump to sell (accumulation) and late bull close position. volume is high.
vol pane: T to P -> 2R
price pane: pt2
4)
to reduce risk, etc, bear starts distribution/unload/profit taking. after no more buying, pt3 is established and downtrend continues. buy volume in bear is usually low.
vol pane: P to T -> 2B
price pane: pt3
5)
price is too low and market absorbs the price. bear distributes/close position and bull buy for value. volume is high. not sure about 'compressions' here.
vol pane: P1
price pane: ftt of bear trend
6)
the rest is for bull trend, similar like event 1 to 5 with different volume naming and OOE, due to buying will have DU+FRV.
If I'm not mistaken, the annotation of volume depends on event in price pane and should help on determining what value to place in the vol pane.
Kindly let me know if there is anything incorrect or miss out.
I think one must learn the truth. Money is just a by product of truth.
To successful traders, money is not the objective anymore.
There should be other factors more satisfying than money, such as helping others, etc.
Men doesn't live only by money.
@Sprout and the rest, thank you for sharing the truth.
