Spydertrader's Jack Hershey Equities Journal II

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Quote from qx04790:

Could you please explain the meaning of the 3 lines and how should we use them?
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In The Camtasia videos recorded by Jack, please notice the lines drawn in on the volume chart. These lines approximate Dry Up, FRV and Peak Volume Levels for each equity. I altered the line equations slightly in order to mirror the explanations given to the IBD Tucson Group and to provide an easier method for 'eyeballing' DU Volume (The method for calculating DU used by Jack). In Journal One, we arrived at the following conclusion: Dry Up levels are not 'absolute' levels, but rather more of a 'range' of values. After all, Jack 'eyeballs' his charts - he uses no 'formula' for the calculations. The lines in the volume pane merely assist the 'eyeballing' process. Throughout Journals One and Two, in addition to various older threads on ET, many have posted various equations for calculating DU, FRV and Peak Volume levels. No small wonder that we keep coming back to 'eyeballing' as a superior method each time.

Quote from qx04790:

Is the definition of your PVADScore different from Jack Hershey's?
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Once the ability to mirror Warden's Balance of Power became available through Wealth Lab Code, we have used the exact same Scoring calculations as Jack has used according to the definitions he posted on USENET and throughout ET.

- Spydertrader
 
Quote from justyield:

OK, I'm a bit confused by this - these stocks weren't on my list using the wealth-lab scans. I must be doing something wrong.
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I don't think you are 'doing anything wrong' at this point. As I have posted in the past, I like to share a few equities which appear slightly interesting to me on the night before. Sometimes they work out, and often (as in the example of FTEK yesterday) they do not.

- Spydertrader
 
Spydertrader, recently you said that your 2 journals contained all the info needed to trade index futures in addition to equities.

Could you please briefly add some more detail to this so I can at least focus my reading?

I'm a little confused because the whole approach with Hershey equities has been to find 1) the highest-quality stocks with 2) a strongly cyclic nature. 3) Then we enter on volume breakouts with price improvement, positive MACD and stoch > 80.

Obviously index futures take away the ability to exploit #1 and #2 above. All we're left with is #3 as far as I can tell. Yet #1 and #2 together are the (I thought) linchpin of the Hershey method.
 
Quote from stevegee58:

Could you please briefly add some more detail to this so I can at least focus my reading?
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Know how the system works inside and out. The relationship between price and volume, so often seen with equities, plays a starring role in futures. The sequence of indicators and how they function with respect to buy and sell confirmations in equities occurs in futures as well - only more rapidly and with far greater frequency. In addition, the function of channels, and one's ability to correctly draw Nwbprop's Point Three formation (Journal One) transfers directly to futures. In short, internalize the equities process, so it becomes second nature to you. Once you have accomplished this goal, you'll be able to 'see' in one instant where you need to be with respect to maintaining a position on the 'right side of the market.'

Good Journey to you.

- Spydertrader
 
A couple of folks PM'd me and asked for my summary compilation of Jack Hershey Methods. It is a work in progress, and was meant as my notes, so no credit is given on who said what, like a proper compilation would be. It also has about 10% content that is not Jack Hershey, but might help new traders. I stuck it on my kid's server here:
www.mtggraphics.com/temp/BigMooseHersheySummaryV5.doc
If it is helpful I will leave it up, if not I'll remove it. Word document, about 500K.

Regards,
BigMoose
 
Quote from bigmoose:

A couple of folks PM'd me and asked for my summary compilation of Jack Hershey Methods.
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Nicely done. Thank you for sharing this document with everyone. I have no doubt many have already found it helpful.

- Spydertrader
 
Truckload in dry up tonight

BBC, BNT, BTUI, CBEY, CKCM, CNTF, CTHR, CTRN, ENG, FTEK, GIGM, IVAC, MEK, MGPI, MIND, MTEX, NCTY, NGS, NWRE, REDF, SFCC, TASR, TSCM,
 
I'd be careful of GIGM seeing as how it's not really showing a volume breakout. Granted it's showing good price improvement, but maybe a short leash would be in order.
 
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