Spydertrader's Jack Hershey Equities Trading Journal III

[svrz]

Here is an Universe stock to keep an eye on tomorrow.

Good trading.

 

[Haroki]

AGreed, bits is on my hotlist also....

 

[gpzany]

Final Universe following End of Month Cull:

BITS BTJ FRG GROW GRRF IAAC ININ MEH NVEC PRXI OMRI PCCC SIM SPAR SNCR SYX

Dry Up List:

BITS FRG NVEC OMRI SYX

 

[thenewguy]

Spyder or anyone who has SCT experience...

I have two questions that I haven't been able to find a definative answer for. First, does the color of the bar of the FTT matter at all? And secondly, does a gaussian formation in the same direction as the trend have any signifigance? I was watching a stock that was in a down trend this morning when a very nice R2R formed. Is that simply a sign of continuation?

Thanks,

TNG

 

[Avi 8]

Quote from thenewguy:

...First, does the color of the bar of the FTT matter at all? And secondly, does a gaussian formation in the same direction as the trend have any signifigance? I was watching a stock that was in a down trend this morning when a very nice R2R formed. Is that simply a sign of continuation?

The color of a FTT bar doesn't matter - on a finer resolution the FTT bar could be made up of mostly one color or another and then change just before it closes.

A R2R is what happens when a long channel or tape CHANGES into a short channel or tape. You might have seen a R2R on a finer resolution than the 'Coarser' down channel or a non dominant retrace on decreasing red volume that went back to the dominant traverse on increasing red volume. Please see the attachment in the 4th post down: http://elitetrader.com/vb/showthread.php?s=&threadid=83604&perpage=6&pagenumber=1

If you let me know the stock - I'll be happy to look at it.

-Mike

 

[Spydertrader]

Another Gaussian attachment ...

- Spydertrader

 

[thenewguy]

Thank you both for taking the time to answer.

I can't remember what stock it was that I saw it in this morning, but here is another example.

Is this gaussian "meaningless" or do I not understand what an R2R is?

Thanks,

TNG

 

[Avi 8]

TNG -

Here is my take on SIRF today. It really helps to draw the channels with points 1,2 and 3.

The first pt1,2,3 channel lasted from 10:50am to the FTT at 2:55pm. You see the non dom traverse starting with the FTT at 1:00pm - just when everyone came back from lunch. This was on decreasing black volume. Then increasing red volume came in and gave us new lows.

At 2pm we had a volatility expansion of the channel and then went right into a lateral traverse on lower volume. Red volume picked up again to give us the low at 2:55pm.

We then had an important CHANGE. Signaled by the FTT and a non dom traverse on decreasing black volume - just as we expect and anticipate. Then the BO comes on INCreasing black volume - heading to a new pt 2 of the new up channel.

I hope this helps.

-Mike

 

[thenewguy]

Quote from Avi 8:

TNG -

Here is my take on SIRF today. It really helps to draw the channels with points 1,2 and 3.

The first pt1,2,3 channel lasted from 10:50am to the FTT at 2:55pm. You see the non dom traverse starting with the FTT at 1:00pm - just when everyone came back from lunch. This was on decreasing black volume. Then increasing red volume came in and gave us new lows.

At 2pm we had a volatility expansion of the channel and then went right into a lateral traverse on lower volume. Red volume picked up again to give us the low at 2:55pm.

We then had an important CHANGE. Signaled by the FTT and a non dom traverse on decreasing black volume - just as we expect and anticipate. Then the BO comes on INCreasing black volume - heading to a new pt 2 of the new up channel.

I hope this helps.

-Mike

Hey Mike,

Thanks for taking the time to do that. FWIW I draw the channels for the stocks I'm trading, but that was one where I saw an R2R in the middle of a down channel and thought maybe there is some signifigance to it.

Upon reviewing Spyder's last document along with your last post it seems that those R2R's are everywhere in a down channel, but they are simply regular down channel R2B's, this is just one I had overlapped from R2B into the next R. It really jumped out at me, which must mean I'm starting to pay more attention to the gaussians.

Thanks,

TNG

 

[Avi 8]

TNG -

Try looking at the chart at 15 and 30 min also.

This should help with the 'Coarse' level gaussians and channels.

Some stocks don't have enough volume to use the 5 min chart.

-Mike