SCT High Velocity Profits Q and A Journal

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With consideration of market pace and market sentiment, a person gets to deal with how much of a rush is required to trade a given sequence of bars.

The combination of formations of trend channels and their interior traverses formations, tell aperson how much the market pace and market sentiment are affecting things.

Say, after a few years, it seems like there is nothing new with respect to the variability of this pair singly and collectively.

It compares to how a person operates a tranmission on a vehicle. Ford leather belts. pounding a farmal fork on a rock in a field Synchro mesh finally showing up on VW's three electronic transmission choices on a BMW.

A trader becomes equipped to do the job.

Sitting in bar 8 and looking ahead for point 3 at the ftt of the non dominant traverse, a person may not be able to judge how to and how frequently to take profits. If he looks at where point 3 could be possibly, then he gets to project the trend channel and the possible trqverses after point 3 as dictated by the contemporary volume levels.

For a variety of examples on this read and cut and paste the pages of the ES trading journal. No one is annotating apparently at this point for any of the diverse methods that the group's individuals are using.

We have a way, by using the pace and sentiment to keep our minds in the ball park. The pace is very strong (see volume levels) and the sentiment is pinned by now. Therefore we do not eek out trades where ther is no volatility stall as the bars go from point 2 to point 3. there is no trading the traverse since their is no chance price will drop off enough to make it worth while. And the non dominant traverse is going to be short.
 
At the end of bar 10 we got to see bar 11 open up from the bottom of bar 10.

Point 3 is in and as shown on the overall chart the first trend channel is operating for the day.

We get volume and the beginning of a new dominant traverse which keeps our attention as we look for a ftt of the first trend channel (long)

Life is slow at this point. we are in high volume part of the day and the daily range is being expanded once we break through the previous high. This process is seen as translation of the DOM (or button).

From this point on see the illustration annotations.
 

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The traverse channel FTT gave us the completion of the second dominant traverse of the long trend channel


Channels overlap and the FTT of this first long trend channel is what we are looking for regarding the end of the channel. FTT (point 1) of the beginning of the second channel may be coming into view especially since we reached an end of a range expansion.

This first trade is part of a beginner trade for the range of the day so far. The signal for the end of the rocket has not appeared.

It is also an iceberg trade for intermediates. The signal for the end of the long iceberg has not appeared as yet.

And it is an SCT trade so far. SCT picks up a bit from this point on. we will see how SCT operates as the end of the rocket and iceberg also come into view.
 
This attachment is an illustration that shows several signals and it also serves as a way to show how the trend channel (long or short) encompasses a boundary system that repeats.

When all is said and done the projection of the limits of price movement into the future is like giving Columbus the map for where the dege of the Earth is. He probably was concerned from day to day about falling off. Market participants and traders set these limits.

Limits come from the psychological aspects of people rather than anything else. Betting on people is CW as we know. On the otherhand if one turns to making money it is a different story.

Making money focusses on effectiveness and efficiency. BY annotating we keep what the market is offering on the table at all times. as the pace and sentiment of the market changes we simply project the poundaries in effect at NOW out into the future and let them move back into the present.

Our contemporary analysis logs what we are looking for next to annotate and use for places to take profits and switch sides of the market in order to continually harvest the profits being offered.

this illustration berings the first 1/3 of the market day to a close by bar 25. At this point we have the points 1, 2, and 3 in for the second trend channel (short) of the day.

We see the STOCH used for the beginners to exit (HOLD is over) and the icebergers to use the fast STOCH to exit(sentiment is over) See pink vertical lines at bars 25 and 22, respectively.

The SCT is annotated on the illustration
 

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the midday four o'clock drift channel handles the midday during the NYC lunch break. It is a high risk time because of the signal to noise ratio.

Noise is where the quant philosophy kicks in. this is where a lot of chaos and random walk come about. For one index like ES, the quant stuff is not applicable for just this noise part of the day.

Quants get to noise another way. they go macro and include all kinds of data from all over the place. at this point they have buried any signals as deep as has ever been done. So I call this "mud". Mud is a very high risk place.

SCT used on ES sidelines when there is noise. We have done only low risk and with high volume, no risk, trading.

I presented a part of a day today using just the ES so far.

The ES is lead by the YM where the same type of annotation is done and projected on the two minute.

Up until Labor Day I will just do Q and A as they come in and I will also do some basic explanations of what is on various parts of the parts of the viewed screens.
 
DEBRIEFING FOR THE DAY

am

Beginners doing the rocket today had a good time. They got in and held until the slow STOCH broke below 80. They do not see traverses and 1, 2, and 3's. All they see is a risk minimizing signal from the MACD histogram so they are past the BO and FBO portion of a day's front end.

Icebergers can take rockets and then they can flaot along in trending days or just do the M or W legs of a day. In August icebergs melt fast because of the low daily range.

Today was a normal day for the end of August. the morning gave us a range expansion on high volume initially and more minor expansions on less than the peaking volume.

Trend Channels gave us legs and then on lower volume two pointers and finally the trend channel was just a low paced four o'clock drift where , until risk went up 3 tick trades were the modus.

Today is was possible for an SCT to take out of the market all the profits offered. beginners could take out most of the Am Range as defined by H-L, Ice bergers could have taken a long, and short.

Midday

The midday came as a CCC where the sideline occurred early on high risk as concergence was starting foloowing a series of channel wide slalom one of more for each bar (A HVS type slalom)

Not shown for today was a centering formation (FBP) that lead to a weak volume BO of the channel.

pm

the BO lead into an FBO followed by a series of even harmonic HVS type channels, all on low volume. The BO's from one lateral channel to the next were on medium volume so the channels were 3tick trading opportunities and the medium volume transitions afforded an occassional 2 point transition.


Again it is the end of August and the range is low and three times the H-L of the day is what is happening.

Check to see in the ES juornal what the corresponding result is for the different styles represented there.
 
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