Market System of Operation

Quote from llIHeroic:

There are three questions I encountered when logging [12-16]. I will hold off on posting more questions than that.

Bar 7 [12-16] : Stitch B is Lat3 because it is considered an internal case, even though the high of bar 5 is exceeded?
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My comments would be:

a) No.
b) Go back a few posts in this thread and see Jack's definition of a lateral
c) Go back to the other thread and see the same thing described there

And as last comment:

Fix your glossary. Is your glossary really useful or is it only a collection of acronyms with meaningless words which define those acronyms. Look at your "Lateral" definition. Writing that it is a "Price case" is obviously not enough as you can see in this example.

Your glossary should be the place where you can find all the answers to the questions you have or had, described in a way that even your mother could understand it.
 
Quote from llIHeroic:

Lateral Sequence Beginning Bar 21 [12-16] : What is the proper way to carry out UL during longer laterals? We track the current largest volume bar in the lateral, and only assign it after confirmed Lateral BO since a Lateral is technically supposed to be one squished bar? Or does Retro kill UL sequence?
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I stopped at bar 22 and looked in your log. Based on the chart that tiddlywinks posted I can see that bar 22 had larger volume than bar 21. Is that correct? So the UL should be on bar 22.

This shows us that either in your chart display or log (or both) we are missing some important information to make the correct decision for UL. Is volume increasing or decreasing?
 
Thanks to all for working back and forth to get anwers to questions and filling in important details.

A brief review.

Topic: The Pattern

Attached is a copy of the Pattern and it is annotated for several approaches.

Topic: The cycle.

On my next post there will be an attachment of how the "scoring" is done on the cycle using three variables of the market.

Topic: The work tasks on five days.

For consistency I believe the clean unanotated highlited P, V chart should be posted for each of the five days. The 18th needs to be broken into three parts for scaling purposes. The five minute time frame usually uses a i point scale. the 30 munute chate usually usues a 2 point scale.

When we get to specific Q's on trends we can post snagits of the trend and its context.

I am assembling a 3 ring binder of this journal. As onsequence I will number pages in my posts in the near future and use pages to refer back to prior pages. This will not create a quality uniformity but it will make it easier to reference and tie things together.

I will also be counting the days. 20 days will be 20 calendar days and fewr trading days. There are also holidays that will be occurring.
 

Attachments

Regarding the glossary.

The list and definitions is on the 3by 5 card level and goes as far as defining just the name and its category.

we will be adding page like definitions as time passes.

So lets get a little uniformity by adding an upper left bold glosssary ID that will allow placing the page itn a three ring binder. This way personal notes can be added to the printed page. Also we can up date the pages by souping them up an reposting them periodically.
 
Re Review

This comment fills in some gaps.

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

The three part volume test procedure enables us to go through a trend on a given fractal

The Pattern shows the relationship of the price points and price failure (called Failure To Traverse (FTT)) (i.e., the price OOE's) to the peaks and troughs of the volume trend OOE's. Thus there is a system of P, aand V combined as indepenent variable Volume and dependent variable Price.

In trends the "normal trend" is three moves or legs: Dominant to non-dominant to dominant.

The illustration ("The Pattern") shows a short trend of three moves and ftt ending the short and beginning the long that follows. The Pattern is the market cycle.

The log is where the volume test procedure is done as a "True"/"False" set of work. T and F are used. Arrows show the flow of the volume test procedure.

Price cases on rows lead to EVENT volume cases and trend End Effects.

You will drill and drill and dril on price case identification. this is a PERMISSION TEST.

You as experts wil do the volume test procedure to find the END EFFECTS of observable trends.

You have sheets defining End Effects. Boolean algebra is use to provide precise expressions. I will go through each named End Effect.

The complete set of End Effects is divided into 10 sub sets. Thus we see the whole system of the operation of the markets is based upon Set Thoery as expressessed in Boolean Algebra that stems from Paradigm Theory. The paradigm is fully complete (A complete Hypothesis Set(HS)) and, therefore, a Parametric Measure (PM) has surfaced.

So we biuld a maths foundation of the system of operation of the markets and, pragmatically, we tool it up so that we can "operate as partners with the market just to the right of the Present and in a state of certain anticipation.

Trends are stacked up in a heirachy invented by Mandelbrot. Fractal as he calls them interlock. thye fastest small fractals have ftt's. each ftt form a point in price. Points form slower fractals and ccombined points form legs of trends. these trends are slower aand they have FTT's as well.

So market form as systems of interlocking fractals going from the finest granularitty to the slowest known economic and econometric patterns our culture, on a global basis experiences.

We settle upon a trading fractal to extract capital from markets and pass it on to problem solvers who work on various cultural level to assure help is given to those in need.

Suffice to say, this doe not work for greedy oriented people. In Venn universes, it is seen that there is no overlap between the Greed set and the Work set. Recently, it was explained to me that to "know you know" the price cases (as lowly memorization) is not a necessary task.

"Know" is a glossary term. In work, know means much more that memorizing. know takes on the meaning of lending utility to even the smallest element or tool. We deal in effectivenss and efficiency. "knowing that you know" means operating in the 10 to 100 ms range by "gaining" Perception so fast and so ACCURATELY.

We finf trend End Effects, catorize them and accociate them with turns that happen between legs (moves that are defind by dominance or non-dominance.

Now you Perceive just how a trend middle completes and in a moment end end effect dictates and defines a specific type of price turn in an interlocking set of trending fractals.

You BE as an expert. You DO as an expert. As 20 days pass you acquire the finte set of ingredients and you "Put the Pieces Together" to HAVE expertise with its knowledge skjills and facility.

We will ID all the sets of elements involved. we we know the OOE's for all these sets. Finally, you will have the knowledge and skills to entertwine these interlocking OOE's as the market system of operation unfolds.

I will do flow sheets for those who desire shortcuts for coding the system of operation of the market.
 
Quote from llIHeroic:

Thank you for your response. I was just about to leave my work space for the night.

Two Things:

1. Upon further review, I think you are correct, and Stitches do not trigger lateral annotation if a two bar internal precedes them. With this in mind, I also see Bar 58 as OB now. I was using the squished bar, but I think that I have had a misunderstanding of how to correctly do that, especially in regards to the UL function.

I still need clarification on how to navigate the UL function in these cases, but if we go back to the price cases pictures for lateral, the first bar always bounds the following two. I just wasn't sure since Stitches are slightly abnormal internal cases that can still trigger WAIT and UL, and I was initially thinking that two consecutive WAIT cases would trigger lateral even with a Stitch.

2. We must have had a mis-communication about Bar 5. We are in agreement that it is XB. However, I was under the impression that all laterals and internal cases began with a translation bar or an outside bar, but now I think from our discussion that stitches can also begin them.

I drew an example of our discussion, it is attached below. However, I am still uncertain about how the UL function correctly plays out in these scenarios.

--

If anyone has any of the five logged days which they would like to compare with me, just post your page and I will post mine. Aside from the re-occurring questions that I have already asked, I feel that the large majority of my logs are recorded correctly.

*Edit for clarification and better explanation of my thoughts.
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you are doing an expert job clarifying by using examples.

I feel that doing this "work" is what causes the mind to build more rapidly.

Great job.

This also shows how valuable a big ersaer is. I recommend the Pink brand since it does not smudge and handles HB lead quite rapidly.
 
Thank to to everybody for being a part of the forward progress. I will attempt to respond to the information given so far.

To frenchfry, thank you for providing valuable feedback once again. I became momentarily confused during the OB post when Stitch was mentioned along with the other internals and also triggers UL. I am glad for the advice of tiddlywinks and yourself to go back to the definitions and avoid confusion.

I have drawings of laterals on my actual notecard as well as price case reference, and now I have added the following sentence from your advice. "Lateral formations occur when two or more bars follow a bar that they are both completely bounded within." We will continue to work on improving the glossary and especially to compare updated pages that are made with the notecards as we progress. Please continue to point out errors.

Also, here is the snip of the lateral on my chart with the volume I used. You are correct that I have performed an error in annotation of volume. However, I am still unsure of the correct outcome of the UL function in the lateral. The UL would first appear on bar 22 as you stated, so is it immediately assigned a volume element, or do we assign only after the lateral is concluded using the last active UL bar in the formation [because we compute formations as a single squished bar?], which would be Bar 25?

I do not have a full understanding of how the Volume Test Procedure is carried out at this point, along with the Retro instruction, so maybe things will become clearer as we start doing drills for those.

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In regard to next steps, I can go through the current glossary, sort them into related topic groups, and then post and assign a consecutive number value to each of the cards so that we can practice uniformity better. We will I will get the list up later today.

If another learning participant could post the charts for us to use in order to compare uniform logging, I would appreciate it. My current default software has a black background, so the bars cannot be colored correctly.

If no one is able to post the charts in a timely manner, I will discover how to get the NinjaTrader replays for the drill days like tiddlywinks attached, and post them all to the thread so we can reference charts with correct coloring.

My paper record of the thread is using post numbers starting from 1 and consecutive at the moment. I will also begin to reference Jack's assigned numbers in the thread Index I create and can post it if the need for clarity or topic searching arises.

Thank you for the participation by everyone.
 

Attachments

Make glossary cards.

sort them alphabetically.

this is a mind building drill.

Cut and paste advice onto both sides of the card.

Begin to make pages of the more important cards.
 
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