SCTlearning from scratch

[jack hershey]

after the PP's are considered, the A band appears as the EE band when the trend has progressed to the extent of having a P1, T1 and P2 in place. Then and only then can the EE's in the Aband be considered.

 

[jack hershey]

Any time during a trend a "failsafe can be used to end a trend. this is done to prevent ;osses on the part of a trader. Capital preservation is important. There are about six aspects of capital preservation that apply to any form of systematic trading.

 

[jack hershey]

after a trnd continues its progress several new bands appear for exclusive consideration as an order of events in bands. They follow the alphabet.

when a T2P occurs the b band is in effect
.

When a T2F appears the C band is in effect and the n+1 rule is applied to carry out the EE test on the next bar after the T2F appears.

All bands after this full compliment of volume elements are in place, occur under special conditions as explicitelydefined in the B thru K look up table.

I need to resize the table

 

[jack hershey]

after a trnd continues its progress several new bands appear for exclusive consideration as an order of events in bands. They follow the alphabet.

when a T2P occurs the b band is in effect
.

When a T2F appears the C band is in effect and the n+1 rule is applied to carry out the EE test on the next bar after the T2F appears.

All bands after this full compliment of volume elements are in place, occur under special conditions as explicitelydefined in the B thru K look up table.

I need to resize the table

 

[jack hershey]

At this point all of the lelements of the system of operation of the markets are defined.

Price has highlights for cases so that an imediateindication of permission to measure volume is provided.

Volume is measured on th log using the test procedure. Then a symbol on volume is added as a ray to indicate the volume name and value is "in effect" in the forwarding trend.

When and EE is found it is labelled in volume by using the appropriate look up table punched into the 1/2 inch three ring binder. Leafing bages as the trend continues can be done. Keping spares of BOTI, BM REV AB LVBO and PP1 and PP6 are often done in advance of the market. I place them so the tops are at the 100K value for volume. Veetical pink arrows point.

Aligned on the price pane above the volume pane, are the trend type, turn type and sentiment arrow and the trading action. The Modrian table contains the EE in one of eight colored panels. At any time only one of the 8 is in use.

Two look up tables provide the answers for these four items.

Trend types advance one type at a time as a trend encounters each EE. thaay are A, B C and D. Read the development of the four trend types elsewhere.

Turn types advance similarly. a. b. and c. There is one exception all trends end on "c" turns.

An a turn is D ominant to non dominant. A b turn is non dominant to dominant. A c turn is dominat to opposite dominant. All of this is done with a deductive proof as can been seen in the system of operation of the markets.

The modrian table presents the relative contexts for the appearance of all c turns. IF the before and after EE appears in the Modrian table, the after is a c turn; if not then the turn is the next turn in the progressiion a to b to c.

 

[jack hershey]

Thus we have reached the place in annotating and logging that the direction Arrow is known, the trend type is known and the turn type is annotated.

as you see on my charts, the fourth aspect is also noted. the aspect depends upon the market CONTEXT as is well known from the myriad of posts stating this FACT.

I use a blob of color to denote "TAKE TIMELY ACTION".

To put the blob on the turn, I use the "Move Reversal " look up table. It has trend type and EE type colored the same as the modrian table.

So it is easy to use. If the EE and turn are cited, a blob applies; if not, then a HOLD thru or some such ensues.

A special nod to the Danish lurker who reminded me to not delay in posting this chart. (An NLP oriented expert)

As everyone knows most people screw up trading and learn failure. HERE is WHY. They do not understand the OOE's of the market turns. for any given turn IT IS EXTREMELY IMPORTANT TO KNOW that you cannot make money on a given turn and FURTHER THE MARKET IS GOING TO RESUME ITS DOMINANT DIRECTION ON THE VERY NEXT INDICATED TURN.

This kind of thing that exists is difficult to handle if you do not know it exists.

If you know it exists, then you have to formalize a method to make use of this knowledge and skill.

Just relax and consider the following. The financial industry as a whole and all of its lacky's are all perpetrators of myths. Take top articulators. I reasoned with CNBC with respect to four possible appearances. Negotiations always broke down. there is NO WAY I can appear on a program where the rest of the tribe there is operating in a vaccuum. I turned down Covel by simply stating "you do not have the correct questions to ask". his "eight hazardous years" .... ilk is a simple revelation that he can't ask anyone who knows anything, just what is going on....

Goodboy stands in a room with an invited guest and can't recognize the significance of people talking about "knowing that you know"...

So this lookup table (Move Reversals) being posted refines the last aspect of a turn into: holding thru, sidelining, taking the trade and taking the trade while minimizing losses.

 

[jack hershey]

so far you do not know the details of using the move reversal look up table.

I am not going to provide any drills for replicating the deductive process for any of the systemmic inovations found in the system. that is several MIT type PhD's of work.

This chart shows how to begin to learn to trade in the trenches and then to add more and more skills and knowledge.

Here you see all the boxes of the feedback system of the operation of the markets.

Print several copies of the flow chart. Cross out what appears to be foreign. What is left is where you are now.

Any smart person would have only wait and enter not crossed out.

That is how it is for all of Schwager's bio's. that is what is going on at CNBC as well.

 

[jack hershey]

so far you do not know the details of using the move reversal look up table.

I am not going to provide any drills for replicating the deductive process for any of the systemmic inovations found in the system. that is several MIT type PhD's of work.

This chart shows how to begin to learn to trade in the trenches and then to add more and more skills and knowledge.

Here you see all the boxes of the feedback system of the operation of the markets.

Print several copies of the flow chart. Cross out what appears to be foreign. What is left is where you are now.

Any smart person would have only wait and enter not crossed out.

That is how it is for all of Schwager's bio's. that is what is going on at CNBC as well.

 

[jack hershey]

Lets use the Essence chart to add boxes that come as consequences of building the mind by doing drills.

You can add hold box once you do all the drills in this thread and begin to log and annotate turns on charts.

At this point you have EE's that can be EXITS showing on the chart.

Begin to use the Move Reversal chart to be able to know to "hpld thru".

Hold thru is found by reading the proper colored pane to FIND the trend, turn EE combo at hand. IF IT IS THERE, you are going to take an ACTION.

Here are the pro active actions:

1. if all arrows (30min, bar color and turn arrow line up), THEN REVERSE.

2, If arrows DO NOT LINE UP, THEN SIDLINE.

3. If there is NO LISTING, then HOLD THRU.

4. If you previously HELD THRU and now at this EE the arrows are the same, THEN STAY IN THE TRADE.

AS ANYONE CAN FIGURE OUT, BY OOE'S, YOU OFTEN KNOW YOU KNOW MANY BARS IN ADVANCE.

Lets say you digest this post, then you take a print of the flow sheet and do not cross out enter, hold, exit and wait. AND you also can reverse at the exit box as well. This means you have begun to link trades doing hold/reversal trading.

so who did covel meet over 8 hazardous years who did hold reversal trading. who has schwager profiled who does hold reversal trading. I look at my dozen or so collegues who are NOT in covel of Schwager nor his search (and they will not be eitheer), what does the list look like? Has it changed at all?

After advanced beginner comes beginning intermediate. This is where entry/exit trading becomes hold/reversal trading.

today is the first time in the history of trading a complete hold/reversal lookup table has been presented. why does an NLP guy know its useage is important??

 

[jack hershey]

The end of the trail.

There are only four boxes to scoop up.

The first one involves the 3 tick rule which is ever present.

Here is the thing. ALL kinds of traders ned to preserve capital. most do not "know they kno" any time they are trading. check out their views on their need for risj and money manangement. This context says they do not know what they are doing. I Kelly worked at BTL (I was an MTS there while still in grad school by special dispensation based upon past stellar performance). He was specializing in information transfer and the potential failure so t od. Some idiot, misused his work in the financial industry for the wrong reasons. today similar idiots follow in those footsteps with no qualms whatsoever. Schwager has not found this out so far either .

To preserve capital, a person is required to sideline each and everytime the market does not continue to make more money. the reason is that there is no room in trading for the phenomena called "HOPE". Nike abides by this as well. If you are no longrer making money, take an early exit; JUST DO IT.

For CW type trading there are two sets of emotions: in the market and on the sidelines. fear, anxiety and anger are personal warning signs of not making money while using this system of operation of the markets. They arexSOP for CW type traders when in the market.

this set of felings means only one thing: YOU DO NOT KNOW YOU KNOW.

THE EARLY EXIT BOX IS USED TO get out of the makret within three ticks of the profit segment under way.

The reenter box.

After an early exit you can erenter if the arrows line up. On my charts you see a dividing line (the doji line of six bars) for a quik scan for reentry. Just do it within 2 ticks of the doji being past.

The OPP early entry box.

All CW BO traders leave half the profits on the table automatically. (See Schwager bio's). As a trader grwos in confidence, being supported by the system of operation of the markets, then he see's the exit to wait to entry path can be circumvented. all he does is use the early exit as a permission slip. Enough said.

finally, the early entry.

Anyone can go take a leak. Consider not being in the market for that period. No one who makes money trading works full time. Only marginal traders work full time.

Use the move reversal sheet to "read" the market. drop into a trade anytime you wish if you are givien permission.

So what comes next is iterative refinement.