Question for Grob/Hershey...

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Quote from easyrider:

They are of no real use unless you draw them real time.
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Thanks, just wanted to clarify that, the charts that Mak and others draw look so right, and these are all in realtime, this is because of practice and effort, and drawing channels and more drawing channels until they just get it right?

Mak may have answered this already just now, when he referred to calibrating the channels volatility after weeks of drawing the channels.

When I am drawing these channels I often have to redraw as new pt2 and pt3 are made, sometimes I am reversing trades very quickly, but does this improve with practice? Other than looking for the 2 or 3 bars for a channel to start, is there anything else I can measure to get the channels drawn spot on?

Thanks
 
Quote From Jack Hershey - "sectionsII A bc and d.doc"

Charting with channels is THE fast track for learning markets and their behavior. It is self- policing as well. That is, mistakes in annotating and notating, quickly reveal where the novice is not knowledgeable. Continuous diligent effort frees the novice from errors of understanding. Patterns appear, consistency is recognizable and rewards are provided. This is a classic iterative refinement process. Deepening understanding follows for the entire trader’s career.
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Aha

Quote from easyrider:

... You dont do it all at once. Have you just tried drawing the channels for a few days? Its an eyeopening experience. Forget volume, forget dom, forget everythng else. You draw the channels. You start to see how many times price bounces off the right line. You start trading those bouinces. Your on your way. Now you start looking for further refinements because you see this stuff working. Add a little here, add a little there. No. Everybody wants the whole package right now and they end up getting nothing.
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Aha

Quote from Jack Hershey - "C_Trading_Chart.doc"
Set up your monitoring screen and go back for two weeks and print daily pairs of charts. Draw in the stuff you “see”. Do you find trades during each day? Make a chart of the day’s trades for two weeks. 10 entries. And in a column for the totals and a H/L range and the answer you get when you divide the H/L for the day into your daily totals. Divide the total profits for the 10 days by the margin requirement. Use the compound interest formula to determine how long it takes the capital you are growing to get to 20 times the 1 contract margin. Naturally you did not lose any money on the trades the volume and channel annotations gave you. Why not?
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As ktmex put it...

"Eureka!"

I finally have my point 1.

Best of trading to you all today, and again many thanks for the constructive contributions!

Anthony
 
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