Market System of Operation

Quote from jack hershey:

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.
More...

Okay, thank you for the additional instruction. I was going to sort the cards into groups, but I will use alphabet instead to assign the numbering system.

I will attempt to start making pages for the cards as well and post one to the thread when it is created [Monday] to verify that things are going accordingly.
 
Logging and annotating are done in 300 second efforts.

1. Get permission

2. If 1. is True, do the volume test procedure.

NB: If you cannot carryover the prior day then just go to a price turn and begin.

Assign P1 to a bar using a pink ray on volume.

3. go to the next bar. Do the repeat test. See if this bar is also a P1. If not, then write F in the box and go to the NEXT sell (T1 cell). Write T for true and Write T1 in the Event column.

What if the repeat is true. If so, then write P1 in the event column and check it twice.

Mentally build a tree of how to keep repeating the bar by bar volume test procedure.

If you cannot get permission to test, relax.

As you do the first few bars, pause and consider End Effects on the three EE sheets.

Soon I will have buzzed through 35 posts where each EE is dicussed individually and an example is provided. Some experienced experts here can do as many as they wish to save me work. We will put them in a 3 ring binder behind the three main sheets you already have.
 
Jack:

You mentioned "point scale" in a previous post so this seems like a good lead-in to a question I have regarding price case formations and instrument quotation granularity

As we all know, 1 ES tick is 0.25. Other instruments, YM and TF in particular are quoted with much more granularity. In YM 1 = 1 tick and in TF 0.1 = 1 tick. So my question is, in these more granular instruments is a tick is a tick is a tick in determining price case, or is there is an "equivalence" factor that you use?

I believe a tick is a tick is a tick.

Thanks
 
PP1

35 bottles of beer on the wall, post on EE and 34 bottles of beer on the wall.

As you log, you get P1's. The first is assigned. The next two can come almost any time. They enlarge the trend volatility. Almost NO traders are aware of trend volatility's role or for sure its role in making money.

Like with pharma's there are good and bad side effects. Your mind's are embarking on the greatest trip ever taken.

This work INFORMS in MANY DIMENSIONS.

P1 is on the first row of your volume elements chart (it has six columns).

Look at "Next" column. When you have an EE you do "NEXT" on a bar.

trends are independent. You have to begin them once and EE has occurred.

A P1 begins a trends ASAP. Two rules:

1. Do P1 on bar of failsafe EE's and A band EE's

2. On all other EE's put P1 on the next bar.

Getting a PP1.

This is like poker. Three of a kind is dealt when it is dealt.

Increasing volatility of a trend is done any time. Hooray.

If you have T for more than one peak, then you use the "leftmost" peak. P1 wins a lot of these tests.

Because we want to get a trend defined, we work to get a parallelogram pronto. In the independent variable this is achieved at P1 to T1 to P2. Hooray.

So we do not allow a P1 after a T1 AND we do allow a P1 after a P2 This is only fair. Most traders cannot do bar by bar nor can they read bar by bar books. Most book writers cannot write bar by bar books. Get this. Some times I call publishers; mostly they call me. I had an Author's Agreement with McGraw Hill while still in college. Once I spent a week commuting to MH in NYC for a week at their expense, etc.... PH offered me Covel's editor.s boss as my editor... lol ...

Bar by bar knowledge and skills set you out in front of all other traders for MANY reasons.

Using the independent variable makes you pristine.

So increasing volume gets more P1's. Consecutive on my charts rates a capital P above a volume bar.

In trading there are two types of triples: accelerating and non-accelerating. The PP1 is the ACCELERATING P1's.

This is the brief momentum based turn of price. the rocket in trading.

I will come back to this post again and add to it.

Just relax and see some triple P1's dealt to you in say seven card stud. Measure acceleration using Arithmetic.
 
PP3

Okay.

You get two P1's one after another, no exceptions.

volume lands BETWEEN the two P1 values on the thrid bar of the trend.

Do you absorb this???? reread.

reread

reread.

now you got it.

this is a PP3.

enough said.

Can you see this E easily. I put a PRV on my charts to help out.

Pro Rata Volume.

It is a blue shaddow that tells you the volume at the END OF THE BAR.

This is a cool invention for many reasons.

Add "SURGE" to your glossary.

As experts, WE D NOT FOOL AROUND.

We frontrun big money.

It is nice to know ahead of time when you have a trade coming up.

PP3 is a very sharpe early warning tool.

33 bottles of beer on the wall.
 
PP2

You have two consecutive T1's

well???

Hey a P2 is coming.

It lands inBETWEEN the two T1's.

You have a PP2 End Effect.

we have 'tweeners and we have acelerators.
 
PP1a

Three P2's happen and there is acceleration.

So the PP1a has been invented.

these are turns.

Turns are event between legs or moves on fractals.

Are you aware of how money is made? Yes, you know that you know that at the end of a "middle" there is a profitataking turn.

Utility of making money.

31 bottles of ber on the wall.
 
PP4
PP5
PP5a

OhOh ....

These are OB type turns.

as you remember OB's have an upper level and a lower NEXT level.

you do a volume teast and get a peak on the upper level. naturally the Next on the lover lvel is a trough.

If vice a versa just fill it in and kjeep going. Troughs first do not yield turns.


So for P1 and then T1 you get PP4 on the lower level as a result.

For P2 and then T2P you get PP5 on the lowqer level as a result.

For T2P and then T2F you get PP5a on the lower level as a result.


QED
 
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