SCTlearning from scratch

[dom993]

Just getting started on drill 1 ... the attached pic only has 2 out of the 25 cases, however the 2nd case (as most of the 25 cases) actually has 2 variants.

I colored the 2nd leg, green for Up, red for Down.

Right there, there is ambiguity unless looking "inside" the bar (which is fine with me, but I want this crystal clear as it is the bottom of the foundation).

 

[dom993]

Drill 1 - 25 cases with their variants.

When price closes at the extreme of the bar (either High or Low), the direction into the Close of this bar can be used to define that bar's sentiment (the other variant has its leg 2 in violet in my table, and should be ignored).

In all other cases (Doji or not), having a peek "inside" the bar is necessary to correctly assess the direction of Leg 2.

 

[dom993]

Drill 2

It seems that a lateral could be any length ... at least that's what I did.
Also, the way I see it, FTP / FBP / SYM / Hitch are 2-bars laterals.

 

[dom993]

Drill 1 - 25 cases with their variants.

When price closes at the extreme of the bar (either High or Low), the direction into the Close of this bar can be used to define that bar's sentiment (the other variant has its leg 2 in violet in my table, and should be ignored).

In all other cases (Doji or not), having a peek "inside" the bar is necessary to correctly assess the direction of Leg 2.

OK, doing the 1-leg / blue circles ; 2- legs red-circles I found that when price opens at either extreme, the bar's sentiment can be defined as going away from that extreme (except for the Doji version in the corners) - but is this the correct interpretation ?

BTW, that makes 2 blue & 14 red circles ... on post #30 Jack mentioned 12 red circles?

This was already mentioned a couple times, but I didn't see a final say on it.

 

[dom993]

Drill 2

It seems that a lateral could be any length ... at least that's what I did.
Also, the way I see it, FTP / FBP / SYM / Hitch are 2-bars laterals.

From Jack's post #49, I improved on the lateral definition. But I have a doubt: can bar #3 in the lateral (n-2 in my diagram) get outside of bar #1 (n in my diagram), or do we need to have a "perfect" 3-bars lateral before additional bars can poke their H/L beyond the lateral's limits (as long as they close back inside) ?

See the 2 possibilities attached.

 

[dom993]

ES 2014-02-28

I think Jack would have been Long from the open of bar 1, because the prior days ended on XBs, but I started mine at the close of the 1st XB.

All figures before slippage (will assume 1-tick per order in the recap):

Long 1855.50 -> 1862.25 = + 6.75 pt
Short 1862.25 -> 1863.00 = - 0.75 pt
Long 1863.00 -> 1863.00 = 0 pt
Short 1863.00 -> 1863.25 = - 0.25 pt
Long 1863.25 -> 1865.25 = + 2.00 pt
Short 1865.25 -> 1866.00 = - 0.75 pt
Long 1866.00 -> 1864.00 = - 2.00 pt
Short 1864.00 -> 1862.50 = + 1.50 pt
Long 1862.50 -> 1862.75 = - 0.75 pt
Short 1862.75 -> 1850.25 = +12.00 pt
Long 1850.25 -> 1854.50 = + 4.25 pt
Short 1854.50 -> 1858.25 = - 3.75 pt
Long 1858.25 -> 1860.50 = +2.25 pt

Total : +22 pt for 13 legs
Slippage : 13 * -0.5 pt = -6.5 pt
Net before comms: 22 - 6.5 = 15.5 pt

Assuming $5 comms per leg, this is $710 / contract.

No volume yet in any of this - just reversing on an opposite XB/XR.

 

[jack hershey]

ES 2014-02-28

I think Jack would have been Long from the open of bar 1, because the prior days ended on XBs, but I started mine at the close of the 1st XB.

All figures before slippage (will assume 1-tick per order in the recap):

Long 1855.50 -> 1862.25 = + 6.75 pt
Short 1862.25 -> 1863.00 = - 0.75 pt
Long 1863.00 -> 1863.00 = 0 pt
Short 1863.00 -> 1863.25 = - 0.25 pt
Long 1863.25 -> 1865.25 = + 2.00 pt
Short 1865.25 -> 1866.00 = - 0.75 pt
Long 1866.00 -> 1864.00 = - 2.00 pt
Short 1864.00 -> 1862.50 = + 1.50 pt
Long 1862.50 -> 1862.75 = - 0.75 pt
Short 1862.75 -> 1850.25 = +12.00 pt
Long 1850.25 -> 1854.50 = + 4.25 pt
Short 1854.50 -> 1858.25 = - 3.75 pt
Long 1858.25 -> 1860.50 = +2.25 pt

Total : +22 pt for 13 legs
Slippage : 13 * -0.5 pt = -6.5 pt
Net before comms: 22 - 6.5 = 15.5 pt

Assuming $5 comms per leg, this is $710 / contract.

No volume yet in any of this - just reversing on an opposite XB/XR.

good job on doing the MADA on the price bars.

rduing all internals to sigle bars in a sequence is good practice for building the mind.

Also you may wish to assign the dollars of margin required to hold a contract.

I use it as a denominator of a ratio to see the impact of the net for building wealth.

I rough it out @ 20 points to add a new contract. You proceeds of 15 point is 75% of what is needed to add a contract.

I will post a few consecutive days of trading to illustrate how compounding profits is the first order of magnitude in trading. I will use a nMAT account where the accounts are small. You can see the capital growing by looking aat the number of contracts in a sequence of trades.

Fees are earned immediately and after hours, settlement shifts the days profits into the BP part of an account. BP means Buying Power.

By trading using OOE's a trader can anticipate instead of reacting.

 

[dom993]

ES 2014-03-04

This raises a number of questions:

1) So far, I am only using the (consecutive-bars) 10-cases, and not at all the bar's sentiment ... where does it come into play ?

2) I have on this chart a number of XBs which close UNDER the close of the prior bar ... are these really supposed to be XBs ? (of course, same question in reverse of XRs)

3) How should I look at Outside Bars ? Are these similar to XBs when they close above the prior-bar (or LAT), and similar to XRs when they close under the prior-bar (or LAT) ?

4) Did I do many errors on that day's analysis, or is it just a losing day?

Thanks in advance
Dominique

 

[dom993]

Drill 3 :
...
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.
...
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.
...
Draw as follows:
1.. For all internals, draw the resulting bar second leg by using a red or black ball point
...

I missed that.
What about laterals ?
Also, do we use that 2nd leg direction for the non-internal bars (XB/XR/SB/SR/OB) ?

From my analysis of drill 1, only Open and/or Close at the High/Low of the 1st-bar of an internal can lead to a composite bar with either 1 or 2 legs. Should I ignore the 3 legs composites ?

 

[llIHeroic]

ES 2014-03-04

This raises a number of questions:

1) So far, I am only using the (consecutive-bars) 10-cases, and not at all the bar's sentiment ... where does it come into play ?

2) I have on this chart a number of XBs which close UNDER the close of the prior bar ... are these really supposed to be XBs ? (of course, same question in reverse of XRs)

3) How should I look at Outside Bars ? Are these similar to XBs when they close above the prior-bar (or LAT), and similar to XRs when they close under the prior-bar (or LAT) ?

4) Did I do many errors on that day's analysis, or is it just a losing day?

Thanks in advance
Dominique

---

5. What about laterals ?
Also, do we use that 2nd leg direction for the non-internal bars (XB/XR/SB/SR/OB) ?

From my analysis of drill 1, only Open and/or Close at the High/Low of the 1st-bar of an internal can lead to a composite bar with either 1 or 2 legs. Should I ignore the 3 legs composites ?

Try to keep things simple and organized in your mind. I have seen a pitfall of learners to begin working and asking many questions along every step of the way. If you stick to doing exactly what the drills ask for, and use the content already given to make connections to do it, eventually things will come into place without becoming confused or slowing down progress.

This is a friendly reminder to you because I have seen how people fail at learning this. If you have a question, search every single post which contains the key-word of your question and find the answer. Every single thing you've asked has already been answered. Don't be lazy.

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.

1. This is where the second leg of a bar comes into play.

2. The math for all price cases has been posted more than once. It is basic math. You shouldn't ever have to wonder what price case something is.

3. See above.

4. Yes, you have made errors. There is no such thing as a losing day.

1- we have the 10 price cases and the only ones that make money are the translations(XB,XR). if we have an internal case we need to merge it to a single bar using the high,low,open,close of all the bars in that internal formation,

2- we identify the leg 2 of the forming single bar to determine sentiment and dominance.

5. See the math for the first three bars of a lateral. See post #49 for lateral continuation criteria. No one has said anything about ignoring three leg internal bars. Re-read Drill three. The first step is to draw in the dominant leg of all internals. Don't over-complicate it.