SCTlearning from scratch
- Thread starter jack hershey
- Start date
doing the drill i got 25 total price cases,
i got 2 cases that are 1 leg
14 cases that are 2 legs
9 cases that are 3 legs.
my drawing is on paper so i'm attaching Alkene's pic here which is the same as mine.
my understanding of the groups are :
1 leg = straight up from open, close at highest high, or
straight down from open close at lowest low
( in this case both open and close are at opposite extremes of bar)
2 legs = up from open then down to close somewhere below the high,or
down from open, then up to close somewhere above the low.
(in this case usually either the open or the close are at extremes ,both can
be at extremes only on the same end of bar= open, go down, come back to close at open)
3 legs=up from open, then down to low of bar, then up to close above low, or
down from open, then up to high of bar, then down to close below high
(in this case the open and close are never at extreme ends of bar)
Jack did say there are only 12 cases of 2 legs so i'm not sure what i did wrong
When Jack said that most are 3 legs, I think he meant that most bars during the trading day are 3 legged.
i got 2 cases that are 1 leg
14 cases that are 2 legs
9 cases that are 3 legs.
my drawing is on paper so i'm attaching Alkene's pic here which is the same as mine.
my understanding of the groups are :
1 leg = straight up from open, close at highest high, or
straight down from open close at lowest low
( in this case both open and close are at opposite extremes of bar)
2 legs = up from open then down to close somewhere below the high,or
down from open, then up to close somewhere above the low.
(in this case usually either the open or the close are at extremes ,both can
be at extremes only on the same end of bar= open, go down, come back to close at open)
3 legs=up from open, then down to low of bar, then up to close above low, or
down from open, then up to high of bar, then down to close below high
(in this case the open and close are never at extreme ends of bar)
Jack did say there are only 12 cases of 2 legs so i'm not sure what i did wrong
When Jack said that most are 3 legs, I think he meant that most bars during the trading day are 3 legged.
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I will get your 5X5 and add paint type circles
BRB
please do drill 2
Went over this again and think i have 2 of the 1 step and i put them in a Blue Circles
And 14 of the Second step which i put them in the Red Circles
Most of the rest left are the 3 step
BRB
please do drill 2
Went over this again and think i have 2 of the 1 step and i put them in a Blue Circles
And 14 of the Second step which i put them in the Red Circles
Most of the rest left are the 3 step
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Thank you for your contribution.
I notice that when trading about 100 contracts the cost is 4,000 dollars a week.
To look at just 1 contract and the prieces you quote, please compare a tick to a trade round trip cost.
In could be 2.40 and out could be 2.40. A tick is 12.50.
When I post daily results, all of the values have a penalty of three tircks from the extreme of the given bar. This is a statisitcal coefficient to compare the potential of the full offer of the market to the real trading prints.
For friday (28FEB14), I see fifteen 2.40 fees to make 47.75 points per contract as the full market's offer. This is for trading a 30 min TF with a fractal that is certain as shown geometrically. The triggering signals ame from a fractal that is certain on a 5 min TF. This just beginner level trading, however.
There is a 10,000 hour threat where theposters are explaning that no one knows how to trade and certainly no one knws how markets work.
As described above there are times during each day when one must sideline as a consequence of the market saying this is required by virtue of the paricipants rendering the market below sufficient liquidity.
to turn to intermediate and expert trading where effectiveness and efficiency are involved, then the tradeoff of which is the trading fractal and how many trades are done comes down to the mnd's limits.
10 to 100 milliseconds are required per coject assessment. There fore, dealing in relative ticks is still easy. Market trades are used and a five minute bar can generally provide a profit.
I noted on Friday that the day's annotator did complain when I suggested he pap up his, what in CW parlance would be call "setting trailing stops" was insufficient. He was averaging only three par bar by cloning a line. He asked for permission to drag the line to save clicks and mouse movements.
So two trades on 81 bars netted down to just transations could be 20 to 40 trades a day.
the fullover as stated above for slower trading is only modified by a correspondingly greater profit than 47.75 points per contract and paying more commissions. This new ratio of profits to commissions is also shown to improve.
In terms of HFT trading, HFT only works because fees are so differnet and small . HFT is used because the organization doing it do not know how the system of ooperation of the markets work.
Again thank you for you positive post and good intentions.
Excellent work
Now lets look at which contexts are significant and which ar not.
I also like your way of bulding the chart in an orderly manner
here is the 3 kinds we have . I have Circle all the 3 part on my 5 By 5
The 1 legs are the ones which are in the Blue Circles
And the Red Circles are the 2 leg ones .. they are 12 i think
And most of the part which are with no Cicles are the three legged part[/QUOTE]
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you are doing very good critical thinking. It was a three leged bar.
BUT very close to a one legged bar, too.
thank for posting the "simplest way it could have occurred.
In trading the most important use of the number of legs in a bar is to prolong holding in a profit segment.
As seen some bars do not have three legs
Occasionally a leg or legs are missing.
And a given leg does not just lock in before the next leg begins.
As determined by the 10,000 of something ot other to be competent. it does not take very long to figure out the importance of each of the three legs.
In trading all price moves have three parts: two ends and the middle.
So we will learn ALL of the price move's end effects.
But first we plant our feet firmly on the ground.
We look at the kinds of kinds of things first. Then we learn what their powers are in MADA.
firs we SEE that the second leg is ALWAYS the dominant leg of the bar and it is, binarily speaking, the same of different than the market's sentiment.
If the same the trend continues
If diiferent, then a market turn could be arriving.
So always knwing what leg of a bar is there is important. each five minute bar lasts 300 seconds. S we look and see what sentiment the second leg has for every bar. All bars have second legs. LOL.
the first and third legs have a sentiment opposite the second leg.
So to read the market all you do is read second legs to get the profit segment duration of bars in a row (in an order of event).
no leg one is a strong signal the trend segment is CONTINUING.
No leg three is a strong signal the trend is CONTINUING.
short leg one and a longer leg two is a strong signal the trend is CONTINUING.
So bar-by-bar analysis contains a lot of information and we are learning the BIG picture of how the system of operation of the markets works.
REMEMBER FOREVER: THE SENTIMENT OF THE SECOND LEG IS THE SENTIMENT OF THE TREND
As seen some bars do not have three legs
Occasionally a leg or legs are missing.
And a given leg does not just lock in before the next leg begins.
As determined by the 10,000 of something ot other to be competent. it does not take very long to figure out the importance of each of the three legs.
In trading all price moves have three parts: two ends and the middle.
So we will learn ALL of the price move's end effects.
But first we plant our feet firmly on the ground.
We look at the kinds of kinds of things first. Then we learn what their powers are in MADA.
firs we SEE that the second leg is ALWAYS the dominant leg of the bar and it is, binarily speaking, the same of different than the market's sentiment.
If the same the trend continues
If diiferent, then a market turn could be arriving.
So always knwing what leg of a bar is there is important. each five minute bar lasts 300 seconds. S we look and see what sentiment the second leg has for every bar. All bars have second legs. LOL.
the first and third legs have a sentiment opposite the second leg.
So to read the market all you do is read second legs to get the profit segment duration of bars in a row (in an order of event).
no leg one is a strong signal the trend segment is CONTINUING.
No leg three is a strong signal the trend is CONTINUING.
short leg one and a longer leg two is a strong signal the trend is CONTINUING.
So bar-by-bar analysis contains a lot of information and we are learning the BIG picture of how the system of operation of the markets works.
REMEMBER FOREVER: THE SENTIMENT OF THE SECOND LEG IS THE SENTIMENT OF THE TREND
I poste drill 2 to be making a chart of the ten cases of the pairs of the price bars.
be sure to do it your self.
the cease have names and expressions in Boolean Algebra that uniquely define the cases. They have been posted.
These drills are for the dependent variable called Price.
The two cases that make money are the translation cases.
To see bar by bar translation in a trend we do something to the other 8 cases.
Drill 3 :
give names to the 10 cases. as follows:
write XB to label the translation long on your work sheet
XR is the short transaltion
SYM is the internal where the second bar is inside the first bar
Flat tops and flat biootms are smple to find and name
A hitch is equal volatility sids by sids bars
three bars where the first twoare one of the four internals above and the third bar is inside these is a lateral. More bars can exist if the bar has a close that is inside. Inside includes equal value extremes.
A flat bottom with a second bar extension up is a black stitch; figure out what a red stitch is.
An OB (Outside Bar) is the opposite of a sym.
From now on we use names
All internals are made from two bars into one bar by combining the parts as a synthized bar. there is an OHLC result with a second dominant sentiment second leg.
By doing this all bars resulting form trending segments with turns at each end.
Take a week's bars and make the 405 bars into trend segments.
Draw as follows:
1.. For all internals, draw the resulting bar second leg by using a red or black ball point
2. Use black or Red majic markers to make trend segments of all black or all red second leg bars. This is a zig zag chart.
3. calculate all the price change of all segements for each day.
4. Add the price shanges to find the full offer of the market for each day.
5 post the 5 day rsults as dates and full offers so you can compare with others.
Notice that you need to know when these turns from one segment to another is happening.
As in all mathematics, the turns in the dependent variable is determined by data from the independent variable. How this is done is determined in the second half of learning to trade.
be sure to do it your self.
the cease have names and expressions in Boolean Algebra that uniquely define the cases. They have been posted.
These drills are for the dependent variable called Price.
The two cases that make money are the translation cases.
To see bar by bar translation in a trend we do something to the other 8 cases.
Drill 3 :
give names to the 10 cases. as follows:
write XB to label the translation long on your work sheet
XR is the short transaltion
SYM is the internal where the second bar is inside the first bar
Flat tops and flat biootms are smple to find and name
A hitch is equal volatility sids by sids bars
three bars where the first twoare one of the four internals above and the third bar is inside these is a lateral. More bars can exist if the bar has a close that is inside. Inside includes equal value extremes.
A flat bottom with a second bar extension up is a black stitch; figure out what a red stitch is.
An OB (Outside Bar) is the opposite of a sym.
From now on we use names
All internals are made from two bars into one bar by combining the parts as a synthized bar. there is an OHLC result with a second dominant sentiment second leg.
By doing this all bars resulting form trending segments with turns at each end.
Take a week's bars and make the 405 bars into trend segments.
Draw as follows:
1.. For all internals, draw the resulting bar second leg by using a red or black ball point
2. Use black or Red majic markers to make trend segments of all black or all red second leg bars. This is a zig zag chart.
3. calculate all the price change of all segements for each day.
4. Add the price shanges to find the full offer of the market for each day.
5 post the 5 day rsults as dates and full offers so you can compare with others.
Notice that you need to know when these turns from one segment to another is happening.
As in all mathematics, the turns in the dependent variable is determined by data from the independent variable. How this is done is determined in the second half of learning to trade.
drill 4.
look at volume bars.
how many different kinds of three bar kinds of relationships are there?
sketch them out.
give them names
post you named sketches.
Drill 5.
Notice in the price zig zag charts you did for five days, that you see that the trend segments alternate.: long short long short , etc..
and since you will be doing hold reversal trading, each direction makes a profit to enable you to take the full offer of the market.
Draw the cycle of the market to connect the independent variable to the dependent variable.
This is done with geometry.
Combine the zig zag with drill 4 to be able to attempt to find the simplest geometrical relationship.
If you do know the answer, please really do the critical thinking to realize how this construct was firsr percieved to be a foundation .
It is good to sweat out this milestone.
look at volume bars.
how many different kinds of three bar kinds of relationships are there?
sketch them out.
give them names
post you named sketches.
Drill 5.
Notice in the price zig zag charts you did for five days, that you see that the trend segments alternate.: long short long short , etc..
and since you will be doing hold reversal trading, each direction makes a profit to enable you to take the full offer of the market.
Draw the cycle of the market to connect the independent variable to the dependent variable.
This is done with geometry.
Combine the zig zag with drill 4 to be able to attempt to find the simplest geometrical relationship.
If you do know the answer, please really do the critical thinking to realize how this construct was firsr percieved to be a foundation .
It is good to sweat out this milestone.
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