Osho. Sorry. Yes, that was in response to you. I have tried 2 min and don't like it, but I have corresponded with many people here who do use it. But then again I also chart one second, hahahaha! But please, pay no attention to me, I am merely posting to break up the dreadful monotony of this love-in. I sincerely believe that Jack needs a disloyal opposition to stay sharp. Mike.
Question for Grob/Hershey...
- Thread starter makosgu
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CAREFUL!
I draw 99% of my channels in realtime as they occur! The other 1% is the higher fractals. If there were a print out of all the charts, the minor adjustments across my charts would be infrequent and comparable. It is evident especially in the daily fractal charts I post. I go through the same exact scaling, relaxing, M.A.D.A. on the range of fractals. Here was the chart prior to the chart osho inquires... http://www.elitetrader.com/vb/attachment.php?s=&postid=852761... What Osho is likely to be interested is when I KNOW to GO and begin channelling the traverse. The key for me is again in scaling and reaching the containment boundaries and just doing it as soon as possible... In this particular instance, I had noted the volatility of the ym and that it was high vol. The second bar continued high vol wrt to the normal distribution of the volatility of 2M YM bars. It had occurred to me as a strong possibility given the current channel. Admittedly, volume was decreasing but volatility was high. I had to be careful since it was different than the usual FTT. WHY? We know that FTT are so clean simply because the next bar shows increasing volume into the opposite direction B2R or R2B. FOR SURE, we KNOW to GO.On the larger channel, the initial bar did not flag an FTT but on the taped traverse, it was an FTT, hence my decision to go. My caution was that I was ready to reverse at the RTL should the larger channel RESUME. If you look closely, shortly thereafter the RTL, a pronounced FTT pops up a few bars later. There were several ways to dice up the zone. It is not simple to say how or why but we do KNOW that CHANNELS overlap and that that new CHANNELS begin within OLD CHANNELS. As a result, I am geared for all 3 points of the new channel before the new channel has broken free from the old channel. Often, the channel that I extend out from the old channel is just a channel of the pt1 to pt2 traverse... How it is that I settle on the size of the channel is just part of my being calibrated... That's why I hoot about scaling so much and making things look less jumpy in order to avoid being hyper. When I put in a channel without a pt3, it is cheating. I only do it as a regard for pace. If the pace is not sufficient, I adjust the slope of the channel. When the pace is extraordinary, I jump to just channeling the traverse... You'll have to pardon me since I just quickly threw together this post and my thoughts at the moment are somewhat scattered (feeling under the weather).
I strive to be relaxed. I acquire it by observing day after day how the scene is unfolding in real-time. Implicit learning in some aspects. As a result, you become calibrated to more and more of what does happen and you know and start feeling certaing about what will not happen.
MAK!
Your current situation is that you stay on the leading market all the time and make your trading decisions there. This is not without problems in the context of what is being done on this thread.
The YM is used to get a heads up on the traded market. The 2m offers a look within the trading channel; i.e., traverses of a channel of a related market. A helpful quality about the leading market is that it is staccato, while the traded market is legato.
The helpful quality works against you for the most part. This is not to say you shouldn't trade YM or make decisions off the 2m. You just have to rework things to get an effective monitoring system to do what you want.
rt clik on ES, select tools/market depth. Apparently it is of use to those who understand it, unfortunately I am not among those.I have seen hints but I have not seen an in-depth discussion of how to use it so far. Since it is an integral part of sct I am hoping that we will get into it eventually.
Thankyou all for your replies, much appreciated
Mak, from your post I understand the following, please correct me if I am wrong,
You draw channels in realtime, trades are based on this
You wait for pt 1 and pt 2 before drawing the channel. You never draw a channel just based on pt 1. You draw a channel as soon as you have noted a pt 1 and pt 2
Depending on how pt 3 unfolds you adjust the slope of the channel trendline
You calibrate yourself for the likely move, this may mean looking at volatility, or the H-L of the bars, volume, or other observations which through experience you have learned are reliable
The vertical scale helps a lot, keeping price movements in context
When prices move fast, you trade in that direction, you are assuming this is a traverse of a new channel, there will be a pt 2 soon, and you are watching for the reverse traverse to make a pt 3
FTTs are obvious because of increasing volume in opposite direction (YM 2 min)
Mak, I will assume all the charts you are posting with their channels are drawn in realtime, unless you state otherwise, and I will continue trying harder to draw the same on my charts
Many Thanks
Osho
Mak, from your post I understand the following, please correct me if I am wrong,
You draw channels in realtime, trades are based on this
You wait for pt 1 and pt 2 before drawing the channel. You never draw a channel just based on pt 1. You draw a channel as soon as you have noted a pt 1 and pt 2
Depending on how pt 3 unfolds you adjust the slope of the channel trendline
You calibrate yourself for the likely move, this may mean looking at volatility, or the H-L of the bars, volume, or other observations which through experience you have learned are reliable
The vertical scale helps a lot, keeping price movements in context
When prices move fast, you trade in that direction, you are assuming this is a traverse of a new channel, there will be a pt 2 soon, and you are watching for the reverse traverse to make a pt 3
FTTs are obvious because of increasing volume in opposite direction (YM 2 min)
Mak, I will assume all the charts you are posting with their channels are drawn in realtime, unless you state otherwise, and I will continue trying harder to draw the same on my charts
Many Thanks
Osho
Yes, you are right I am only trading YM, but what you are suggesting is a good idea, that it is better to draw channels on YM, but trade the ES ?(ES is the "traded market" in this context)
As far as I am aware, nothing leads YM, so I have no idea how to achieve an effective monitoring of YM, unless I choose a 1 minute timeframe to draw channels, in an attempt to produce a leading indicator for YM, but this is going away from the agreed setup which I don't want to do.
I am assuming that most traders are trading ES, and not YM, but it would be nice to know of any traders trading YM, using SCT, and how they overcome the fact that they are always on the leading market
Many Thanks
Osho
Oh, pu-leeeze, Osho! NOTHING leads YM? Use your brain (a skill demonstrably lacking in some quarters on ET). The DJIA has 30 constituent stocks for pity's sake. SOMETHING or things leads it SOMETIMES. (I won't even mention that slimy black sticky ucky gooey substance, OIL). Maybe even the underlying cash value leads it. I know for a fact ("That's a fack, Jack!", with apologies to Bill Murray) that what I say is true of NQ.
But let me quote you scripture: "Oh faithless generation, which seeks a sign!" It is easy to fall into the indicator trap and to fail to develop an understanding of the underlying manipulative nature of the markets. The lala images auction markets, of supply and demand, or of mechanistic mathematical models are complete bullshit. The reality is that those who make the markets make them in such a way as to MAKE YOU WRONG. Understand that, nay, EMBRACE it, and use it to your advantage.
But let me quote you scripture: "Oh faithless generation, which seeks a sign!" It is easy to fall into the indicator trap and to fail to develop an understanding of the underlying manipulative nature of the markets. The lala images auction markets, of supply and demand, or of mechanistic mathematical models are complete bullshit. The reality is that those who make the markets make them in such a way as to MAKE YOU WRONG. Understand that, nay, EMBRACE it, and use it to your advantage.
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