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Spydertrader's Jack Hershey Equities Journal II
- Thread starter Spydertrader
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Quote from Spydertrader:
To locate an FTT within these specific trends, you need to see where price fails to traverse (FTT) when moving in the same direction as the dominant trend. Monitor the traverses (green and red lines), and when price fails to reach the other side of the channel, you have an FTT (again when moving in the same direction as the dominant trend).
- Spydertrader [/B]
Hi Spyder
I think I still have trouble understanding the concept of FTT. My thinking was that a FTT occurs everytime the price fails to traverse the full path between the trendlines (from left to right or right to left ).
In the post I have quoted, you emphasize 'same direction' as the dominant trend for a FTT to occur. To clarify my understanding I have attached a sketch and hopefully you could clarify my understanding.
The dark blue line is the dominant trend (price going down). Point A is a FTT since it failed to traverse as the price was falling (same direction as the dominant trend) and Point B is not a FTT since the price was rising (not the same direction as the dominant trend).
Am I correct in my understanding? If I am not, I would appreciate if you could clear if up for me.
I am sorry, If I have mis-interpreted what you meant by 'same direction of dominant trend'.
Thanks
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Quote from bi9foot:
In the post I have quoted, you emphasize 'same direction' as the dominant trend for a FTT to occur. To clarify my understanding I have attached a sketch and hopefully you could clarify my understanding.
You correctly understand the concept of the FTT. Thank you for providing the sketch. I have modified your sketch slightly in an effort to show how the up trend channel (created by the FTT) has its own FTT (created when the previous FTT failed to break out). This process works for both equities and futures. See the attached RNOW Daily Chart, and use the attached sketch to 'see' the FTT trades with RNOW. The FTT from the red down channel created the 'Point Three' formation of the Bright Blue uptrend Channel.
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1263373>
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1263106>
- Spydertrader
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Quote from mischief:
Hi all,
Just a quick note that CBEY is on my dry up list but reports tomorrow (according to earnings.com). Unless you're planning on getting out EOD, I wouldn't recommend a trade
Yahoo shows CBEY earnings date was Nov 1 (and has the <a href="http://biz.yahoo.com/bw/061101/20061101006045.html?.v=2">report</a>
available to read).
I have noticed a lot of symbols lately showing recently reported on yahoo while CS shows a soon but future date. Yahoo seems to be the more accurate one lately.
Quote from Spydertrader:
You correctly understand the concept of the FTT. Thank you for providing the sketch. I have modified your sketch slightly in an effort to show how the up trend channel (created by the FTT) has its own FTT (created when the previous FTT failed to break out). This process works for both equities and futures. See the attached RNOW Daily Chart, and use the attached sketch to 'see' the FTT trades with RNOW. The FTT from the red down channel created the 'Point Three' formation of the Bright Blue uptrend Channel.
Spyder,
Thanks for the clarification.
[i
Monitor the time and sales for size at this point (I filter for 50 contracts and above). Did size move in? What happened to the bid / ask on the DOM? No size? what happened on DOM again?
- Spydertrader [/B]
I wonder if you or Jack or anyone could comment on this. When you talk about size moving in at resistence or support: I am assuming that most of the time smart traders do not sell at the lows or buy at the highs so most of the time size coming in at these points is indicative of a reversal. Is this correct?
Quote from Bearbelly:
I wonder if you or Jack or anyone could comment on this. When you talk about size moving in at resistence or support: I am assuming that most of the time smart traders do not sell at the lows or buy at the highs so most of the time size coming in at these points is indicative of a reversal. Is this correct?
Actually, what I am saying is this: Once a trader obtains a certain level of proficiency and experience using these tools, the trader no longer uses words like most of the time. This is exactly what Jack talks about when he says the days of probability are over. You begin to 'see' what comes next, and as a result, no longer place 'bets' on direction. Understanding this paradigm requires a fundamental shift in how one views the markets (Perhaps, Mak can chime in here). I understand many consider such thinking heresy, but I'm not speaking of a leap of faith, magic beans or voodoo. All of the tools (channels, Price, Volume, Indicators, DOM, Str / Squ, T & S, YM, 20 SMA, and most importantly, context) combine to form a picture. By monitoring the picture, one ends up on the right (correct) side of the market - each and every time.
However, arriving at a place where one appears to have an ability to 'see' the future doesn't happen overnight. One needs to train their mind to analyze the input parameters quickly, make the appropriate decision, and finally, engage in timely action. Each of these steps involves the use of a separate skill set, and as a result, requires practice in order to obtain the required proficiency.
Hence, I have recommended a path, by which, a trader can begin to build the foundation required - monitoring price and volume. Drawing in trendlines (in real time) while searching for those FTT's provides the necessary building blocks required for success. The FTT is the key to the entire methodology.
I hope the above provides some additional clarification. If not, please let me know.
Good Trading to you all.
- Spydertrader
Excellent commentary Spyder.
Entered XING long, $15.04.
I received a go signal, and as I was watching, price began to decline from the high of the opening bar. So, I sat and waited for a bit, drew in a trend line on the 30, and when it looked like price had bounced off of it, I entered.
Because of the way the daily looked, and how close the 30 was to breaking the trendline I drew in, I had a tight stop set @ $14.92.
Entered XING long, $15.04.
I received a go signal, and as I was watching, price began to decline from the high of the opening bar. So, I sat and waited for a bit, drew in a trend line on the 30, and when it looked like price had bounced off of it, I entered.
Because of the way the daily looked, and how close the 30 was to breaking the trendline I drew in, I had a tight stop set @ $14.92.
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