Market System of Operation

1. Jack, thank you for posting the chart of 6-25-13 for me to make a comparison.

I logged a few more internals on the chart I used versus the example, but a question was produced for me in regard to Outside Bar. I believe that an OB is still referred to as an internal case, but I am unsure.

For example, if an OB's volume was lower than previous bar, an Arrow and UL would be used for the previous bar, and the dual volume test would both become WAIT? Then, would we consider another internal case after a lower volume OB a Lat3?

And when volume is higher we squish OB into the previous bar and make them into a translating bar with the higher volume level.

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Also, thank you frenchfry for helping me with the learning process in a significant way as well. Your encouragement and guidance for both valuable to me. I will attempt to remain operating in the now. I will do Price Case and Volume test drills for the listed days, it is a perfect time for the work with the weekend coming tomorrow.

Stockie, I have read that the method is working in over 85 markets when the post was created. The market system of operation works on all fractals. I have a partial glossary that I will review and update to my best knowledge this evening. I will post it then and we can continue to improve and grow it.

Thank you again to everyone who is choosing to be involved in the transference process.
 

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Quote from Stockie:

A couple of questions:

1. What instruments or instrument classes is this valid for?

we have found about 85 applications in exchanges around the world. Please post some P, V charts you wish considered

2. Can it be applied to / is it effective on higher intervals such as hourly and daily?

three fractals are involved. two nearby time frames will show three adjacent fractals. Post a set of TF's and we can point out the fractals to use on them.

A glossary of acronyms would be useful.

For your search and contribution, the best lists available are on three levels. Any acronym "fits in" to a context. For each term listed there is a comment or schema that shows the surrounding acronyms. As you will see here, each new element, as it is introduced, is defined and related to other significant elements. The way bginners do this is with 3 by 5 cards and glue sticks. Gradually their deck increases. As the context deepens these people convert the cards to pages in a three ring binder. What is nice about binders is that they can be continually expanded.
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Outside bar comments



Quote from llIHeroic:


I logged a

snip...

few more internals on the chart I used versus the example, but a question was produced for me in regard to Outside Bar. I believe that an OB is still referred to as an internal case, but I am unsure.

For example, if an OB's volume was lower than previous bar, an Arrow and UL would be used for the previous bar, and the dual volume test would both become WAIT? Then, would we consider another internal case after a lower volume OB a Lat3?

And when volume is higher we squish OB into the previous bar and make them into a translating bar with the higher volume level.

snip.....

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As may be seen I am not a great communicator.

An OB strickly speaking, and we are these days, is NOT an internal.

as you delve further into the coding on the trading platform you will see some very sophisiticated stuff that is very definitive. BUT....

for now we are just building the mind.

There is one problem that the mind has figured out quite thoroughly. The mind throws away all negatives.

you can see his by reading below.

don't fall down on the ice.

Walk carfully across the ice.

thank you for doing the reading.

I try to write in a positive way with a neutral bias.

OB's are real work horses. They are the pony express of making money bar by bar in trading markets.

Since they are we take this advantage.

First we squeeze in the space to work. It is two levels so the UL gets killed right away.

this makes me tell you about "kill".

We are going from a point and building a system. Glossary arrived perfectly in three pages. we will see many many people give up on learning and building their minds simply because they lose out by not working hard enough. they can't remember stuff.

The solution to remembering what is required is to do work.

OB is being discussed.

The internals include FTP, FBP, Hitch and SYM. we also slipped in the two stitches (B and R).

Thus we have to deal with XB and XR as a team and we have to get latrals handled.

Do the drill of taking a sheet of paper and a pencil with HB lead in it and draw the ten cases over and over until you can draw them in any stall in any bathroom like kilroy was drawn in the second world war. Kilroy was in charge of all the gremlins of that period.

Moth wings came later in relay based computers. All bugs formed a set, in fact.

the ten cases are foundational elements just like the periodic table.

We will use every scrap of information to its best advantage.

OB's have to be processed completely and consistently. Each level will always have a name and the name will never be WAIT.

The upper level is processed the way any row is proccessed to get a volume result. As a price element the upper level ALWAYS gives permission.

This is the way it is.

The lower level is where another glossary term is invented. the word is NEXT.

But first we define kill. Kill is a lack of doing anything or allowing something specific to be done. Wait is easy to handle. It is passive. Killing is active purposeful waiting when it appears there are things to go forward with. Kill prevents false activity.

In trading failures of elements or activities are very important. Opportunities missed can be as bad as mistakes. We do as required without error or omission. We achieve a failure as result upon occassion. Thus we "know we know" all of the time.

Most noteworthy in trading is the known failure to traverse.

An OODA trader using CW sets a target. Makes a bet, puts in a stop and creates losing money. this creating process also creates risk manangement and money manangement. These combined efforts, in turn, create success for 10% of these practitioners. None of these traders are ever cognisant of one of their trades failing to traverse.

As days go by we will be notating a subsystem clled "failsafe" a term taken from the bombing industry. As bombers do all the time, they just bomb others and never bomb themselves. For us losing money is not what we do. Bettors lose money. So we do not bet. We do failsafe just as bombers do to prevent bombing themsleves.

Back to NEXT.

On the lower level of an OB row bar, we just enter the next volume element in the volume order of events (OOE). This brings up the volume OOE. Read down the volume element list I posted to HAVE the OOE.
 
A brief overview.

We willl use price cases to get permission to do the volume test procedure.

Price and volume are intimently linked and they form a trading cycle as a pattern. The cycle includes two opposite trends. This cycle pattern wholly defines the variable relationship.

We trade the pattern as a hold/reversal strategy to take the full offer of each type of trend in the cycle.

The singularity of the pattern is the trend failing to traverse.

Notice that this failure is the end of each trend in the cycle.

Thus trend monitoring and analysis involves knowing that you know the ends of trends and what happens between the ends.

Two ends and one middle.

Ends come about because of one reason. The reason is failure.

Failure is shown as a WALL on the DOM too big for the biggest to surmount.

On the otherhand, middles of trends, where price moves for the making of money, is controlled by the minority. Watch the DOM and the direction of movement. It comes about by market orders CONSUMING limit orders on the smaller side of the bid and offer sides.

All of this is COUNTERINTUITIVE.

Today is one day. You know how to have long term memory of anything you need.

You need to know you know the price cases.

You have learned that measuring volume gives you the order of events in the middle between two ends.

Two sheets of paper contain all the names of the ends. The names have simple definitions as simple as the price permission cases.

For example an ending called PP3 is a volume test value BETWEEN two other prior named elements.

Our trading strategy is easy to remember: we hold through middles and we reverse on ends.

Between ends is done by monitoring and analyzing the order of events of volume (when given permission). When an end arrives, you will look at either of two sheets of paper to name the end in volume.

You will look on a third sheet (the Modrian table) to see the type of turn. There are three types that follow an OOE. This sheet lists the turns that are trading fractal trend endings.

Finally, it is a good idea to know "what is what" ahead of time. I will wind up this 20 day period on about the 10th day by explaining how you "know you know" to reverse for certain BEFORE the reversal action comes into view in the Present. That is, you are told by the market that a turn is coming for certain aead of time.

Thus half ot this thread will be spent getting everything transferred and the other half will be devoted to the HAVE called "having facility".
 
here is the volume element list. there are seven and they are defined in Boolean algebra. you have to know what =, >, and < mean. One the sheet you will see = and > combined as well as = and < combined.

http://www.elitetrader.com/vb/attachment.php?s=&postid=3831320


The elements appear in this order: P1 to T1 to P2 to T2P to P3P ordinarily.

to begin a trend, the prior end is taken into consideration.

In any event, P1 is assigned (given permission on that bar's row.

then you use the table for subsequent volume bars by doing three tests:

1. find if it repeats (column 2).

2, look back in time to see if it is eligible to repeat again. (See test in column three)

3. If steps 1. or 2. fail then go to the NEXT elment in the sequence listed above.

By looking at competently completed logs you can easily catch on.

So after you do the 405 rows of this week, go back and do the voume test procedure.

To begin this you need to know how to understand IF a trend has come to an end.

Attached is a sheet of early endings.

http://www.elitetrader.com/vb/attachment.php?s=&postid=3831328
 
The three sheets of end effects have elements that occur in volume bands.

A band is a high low range. Prior volume element define the bands.

A band is between T1 and P1.

B band is between P2 and T2P

C band is between T2p and T2F.

We will not use or need bands D and E.

F Band is outside of T2P and P2 and not including parts of band H.

G is a value after a specific test on a specifically defined bar. The test is the n+1 bar test after the first T2F or successive T2F's. the value is between T1 and T2F the voume bar is namded P3F if it occurs.

The H band is outside of P1 and T1 after P2t's AND P2F's have occurred. It odes not overlap band F. Band F is inside band H always.

Band K is like band C BUT it is not in effct until a triple alternation of T2P and T2F.

A drill in a few days will be to draw the bands on a blank sheet of paper. They begin and end as events in the volume test procedure are completed.
 
To do the volume test procedure and find a "true" to name a bar can result in no trues.

When this happens, then you look in the bands for an end.

There are two classes of exceptions: failsafes and the PP's.

Weekends have a purpose.

I will post charts and logs as in the past. We will work through the five days of this week by combining what has been posted as text.

Glance at the PP sheet. Notice the PP's are a few different kinds like acceration and betweeness. Also notice how OB's can have PP's.

On price we will use the bookmark and the rtl line on each turn. If the bookmark is penetrated we have a BM REV. This is a simple wash trade. As you annotate volume and have a T1, then you can use the BO of the rtl as a slightly prrofitable trade. It is named a BOT1.

As a middle develops volume bars get tested and named. At the first P2, the bands are beginning to come into effect. The list of A band ends is long. and looking at HVBO's is easy. There is one LVBO (Ab).

Treat this weekend as like beginning to learn to read in grammar school. Or learning to do math in a Montessori setting.

I'm sorry the detractors have arrived. When I first appeared by invitation the ratio of my posts to detractor posts was 1 to 7.

I can appreciate that my posts appear as gibberish. It is natural for some kinds of people to entertain. Personally, I love to be invited to the stage to do improv. This is a journal, however.
 
Jack,

Thank you for posting the explanation on Outside Bars, it has increased my knowing a lot.

To everyone, many new vocabulary terms have been recently introduced. I have the initial list completed, but now I will go back and add these new terms.

The updated list will now be posted later tonight instead of this evening.

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I would like to give a reminder to any additional willing participants to continue to review the ten price cases and practice them before we move too far onward if you would like to be a part of the transference process.
 

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