Currently compiling litterature for DOM, OTR charts, T&S, YM2min etc.
Here is about YM
The idea behind the YM leading the ES has less to do with timeframes, and more to do with 'smart money' involvement in the marketplace. Equating the ES two minute to the YM two minute isn't quite like comparing apples and oranges. It's more like comparing Red Delicious and Golden Delicious Apples. While both make for a great snack, you'd only want to 'bake' with one. Using the other makes for a really crappy pie.
In short, if I am going to go through the trouble to bake a pie, I'd like to make sure it doesn't end up tasting like crap. As such, using the 2 minute YM as a leading indicator of ES Price insures one uses the best 'ingredients' available.
A fundamental paradigm shift is required in order for the learning trader to understand what the methodology is all about. The system does not provide entry and exit signals. Rather, the methodology allows the trader to differentiate between continuation and change. In other words, this isn't a traffic light with green for go and red for stop. It's driving on an expressway through Texas at night with nothing on the road for miles and miles (continuation) when suddenly a coyote runs onto the road (change). You don't stop your car and wait for the coyote to pass. You switch lanes or risk running into the animal and smashing your car.
Now, no instrument on your dash board told you when to expect the coyote, but when you saw it appear on the asphalt, you knew exactly what to do - alter your direction. Toss into the analogy one of those road signs which say "Coyote Crossing Next 4 Miles" (context) and suddenly, you begin to anticipate the arrival of the animal. By anticipating a coyote (FTT) crossing the road on this specific stretch of roadway (peak volume at a Gaussian) you have the ability to react quicker. Add some of those extremely luminescent head lights (The YM) and you can see the coyote (FTT) even sooner.
My question is do you use YM only as a leading indicator in spotting FTTs in ES ?
No. The YM represents a leading indicator of 'change' for the ES Price. Later in the Journal we will discuss using the YM where there is no FTT on the ES - only a Left to Right Traverse. At that time, we will focus on Flaws as a signal of change as well.
Because we say, "The YM leads the ES." we know that a 'change' signal appearing on the YM foreshadows that same 'change' signal on the ES. If you look at this same time period on the 2 min ES, it appears as though price is sitting in a lateral channel for three bars. When you say, you see no difference in using the 2 min YM or the 2 min
Here is about YM
The idea behind the YM leading the ES has less to do with timeframes, and more to do with 'smart money' involvement in the marketplace. Equating the ES two minute to the YM two minute isn't quite like comparing apples and oranges. It's more like comparing Red Delicious and Golden Delicious Apples. While both make for a great snack, you'd only want to 'bake' with one. Using the other makes for a really crappy pie.
In short, if I am going to go through the trouble to bake a pie, I'd like to make sure it doesn't end up tasting like crap. As such, using the 2 minute YM as a leading indicator of ES Price insures one uses the best 'ingredients' available.
A fundamental paradigm shift is required in order for the learning trader to understand what the methodology is all about. The system does not provide entry and exit signals. Rather, the methodology allows the trader to differentiate between continuation and change. In other words, this isn't a traffic light with green for go and red for stop. It's driving on an expressway through Texas at night with nothing on the road for miles and miles (continuation) when suddenly a coyote runs onto the road (change). You don't stop your car and wait for the coyote to pass. You switch lanes or risk running into the animal and smashing your car.
Now, no instrument on your dash board told you when to expect the coyote, but when you saw it appear on the asphalt, you knew exactly what to do - alter your direction. Toss into the analogy one of those road signs which say "Coyote Crossing Next 4 Miles" (context) and suddenly, you begin to anticipate the arrival of the animal. By anticipating a coyote (FTT) crossing the road on this specific stretch of roadway (peak volume at a Gaussian) you have the ability to react quicker. Add some of those extremely luminescent head lights (The YM) and you can see the coyote (FTT) even sooner.
My question is do you use YM only as a leading indicator in spotting FTTs in ES ?
No. The YM represents a leading indicator of 'change' for the ES Price. Later in the Journal we will discuss using the YM where there is no FTT on the ES - only a Left to Right Traverse. At that time, we will focus on Flaws as a signal of change as well.
Because we say, "The YM leads the ES." we know that a 'change' signal appearing on the YM foreshadows that same 'change' signal on the ES. If you look at this same time period on the 2 min ES, it appears as though price is sitting in a lateral channel for three bars. When you say, you see no difference in using the 2 min YM or the 2 min
