You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Spydertrader's Jack Hershey Equities Trading Journal III
- Thread starter Spydertrader
- Start date
- Status
- Not open for further replies.
Yes,
Qcharts has a 65 day avg. volume column. The really nice column though is the unusual volume column which shows you current days volume as a percentage of 65 day avg. Sorting using that column quickly brings to your attention good potential stocks to trade.
-A
Qcharts has a 65 day avg. volume column. The really nice column though is the unusual volume column which shows you current days volume as a percentage of 65 day avg. Sorting using that column quickly brings to your attention good potential stocks to trade.
-A
Attachments
Price breaks the Orange Down channel on Increasing Black Volume. Price then forms a Sym Pennant (yellow) followed by a Lateral Formation (Purple). These formations occur on decreasing Volume. While all Black Volume appears to form levels less than the previous Gaussian Peak, one can 'see' a new ST Channel forming (Green) within the larger down channel (Brown). In other words, both of the previous sets of annotations 'work' depending on one's trading resolution level.
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1703332>
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1703332>
Attachments
Thanks Spyder,
I really need to learn my flaw formations - recognizing them brings alot more clarity to the gaussian analysis. I think I need to be more conscious of spotting a FTT when redrawing my channels. I think in this case, I might have recognized that I had a flaw (instead of a FTT with Thursday's bar) and I probably would have held off on fanning out to my brown down channel.
-A
I really need to learn my flaw formations - recognizing them brings alot more clarity to the gaussian analysis. I think I need to be more conscious of spotting a FTT when redrawing my channels. I think in this case, I might have recognized that I had a flaw (instead of a FTT with Thursday's bar) and I probably would have held off on fanning out to my brown down channel.
-A
Quote from Atari:
I really need to learn my flaw formations - recognizing them brings alot more clarity to the gaussian analysis.
Over in the Futures Journal, my Five Posts in the beginning of September clarify the Formations. In addition, November's 'Putting it all Together' post has some information you might find useful.
- Spydertrader
Spyder,
A couple of posts in the futures journal have me confused on a couple of points regarding FTTs. Since I assume most of the people who follow the futures journal have a good handle on the FTT and this information also relates to equities, I decided to post my question here. Let me know, and in the future, I will post such questions over there.
My first question is: if a price turn, from the Dominant Traverse to the Non-Dominant Retrace, occurs on the channelâs Left Trend Line or after a Volatility Expansion of the Left Trend Line is that considered a FTT? I always assumed that it was essentially a FTT and would annotate and treat it as such, but the following question (by dkm) and your response makes me think I was incorrect in this.
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1703678>
In addition, if this is not considered a FTT, I do not understand how this fits in with the initial trading system outlined at the beginning of the futures journal. Where the trader enters on a FTT, which is always followed by one of three things: 1. Another FTT (reverse position); 2. A FBO (exit); or 3. A BO (hold). I figured the trader would want to exit at the top of the channel, but if that is not a FTT, then the rule set doesnât seem to work. The trader would hold through the turn and down the retrace then sell on a FBO (which makes sense) or hold through a BO (which no longer makes sense).
If you can help me with where my misunderstanding is, I would appreciate it. I have another question I will put in a second post.
Thanks,
-A
A couple of posts in the futures journal have me confused on a couple of points regarding FTTs. Since I assume most of the people who follow the futures journal have a good handle on the FTT and this information also relates to equities, I decided to post my question here. Let me know, and in the future, I will post such questions over there.
My first question is: if a price turn, from the Dominant Traverse to the Non-Dominant Retrace, occurs on the channelâs Left Trend Line or after a Volatility Expansion of the Left Trend Line is that considered a FTT? I always assumed that it was essentially a FTT and would annotate and treat it as such, but the following question (by dkm) and your response makes me think I was incorrect in this.
Quote from dkm:
ES chart 2 Feb 07 attached
Spyder:
A question regarding channels that do not start with an FTT.
We occasionally get a situation where point 1 of a new channel will be on the left trend line of the old channel. This is often the case after a period of volatility expansion (see point X on attached chart). In this situation, am I correct in thinking that all we have in the toolset at present to identify the appearance of the new channel would be the B2B guassian switch?
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1703678>
Quote from Spydertrader:
Because we currently find ourselves focusing exclusively on recognizing and acting upon the formation of an FTT, I have intentionally avoided mentioning 'other' times when the market signals change instead of continuation. I have purposefully omitted additional 'change' signals at this time in an effort to keep people focused on the Coarse Level resolution. After all, at Coarse Level (Forest), an HVS, Hitch, Dip, Stall and even CCC, signal continuation (or hold if entered, wait if sidelined). Under medium and fine resolution (Trees, Limbs and Leaves (even Bacteria on Leaves, on Limbs, on Trees, in the Forest), the HVS, Hitch, Dip and Stall formations signal a change (reverse) - albeit for a very short period of time.
Understand, if traders never progress beyond the Coarse Level resolution, they can make a very fine living - simply by "trading between the FTT's." As such, I want to make absolutely sure everyone can use the tools to perform two very specific tasks:
1. Quickly locate an FTT
2. Quickly spot their errors when they think they saw an FTT but really didn't
Later in the Journal (when we arrive at 'putting it all together'), we will focus on the differences between continuation and change at all levels of resolution. At that time, we will use tools we do not yet have available to pinpoint the left trend line turns (and all signals of 'change'), as well as, the FTT's.
For now (and to answer your question), we do not have the tools - nor the experience required - to monitor left trend line 'change' vs 'continuation' signals. As such, remain focused on the FTT's at the Coarse level resolution.
- Spydertrader
In addition, if this is not considered a FTT, I do not understand how this fits in with the initial trading system outlined at the beginning of the futures journal. Where the trader enters on a FTT, which is always followed by one of three things: 1. Another FTT (reverse position); 2. A FBO (exit); or 3. A BO (hold). I figured the trader would want to exit at the top of the channel, but if that is not a FTT, then the rule set doesnât seem to work. The trader would hold through the turn and down the retrace then sell on a FBO (which makes sense) or hold through a BO (which no longer makes sense).
If you can help me with where my misunderstanding is, I would appreciate it. I have another question I will put in a second post.
Thanks,
-A
Attachments
No, it is a LTL bounce and not a FTT. This was covered much later than the post you referenced.Quote from Atari:
...My first question is: if a price turn, from the Dominant Traverse to the Non-Dominant Retrace, occurs on the channelâs Left Trend Line or after a Volatility Expansion of the Left Trend Line is that considered a FTT? ...
This question involves gaussan analysis with the FTT. Spooz-trader1 mentioned that noticing increasing volume following an FTT helped him spot them (sorry I donât have the direct quote from the journals, I noticed it in Pr0crastâs summary of the first month). In another post Spydertrader (once again donât have direct link), you said âwhat would normally occur during an FTT â decreasing red volume followed by increasing red volume.â
My question is do these volume pace changes occur right around the FTT or over a longer period as price moves through the channel? I was under the impression that, in most cases, there is increased volume around a FTT then volume would decrease as it retraced the channel to the Right Trend Line. After it reached the RTL, price would either continue down (assuming we were in an up Dom. Channel) on increased volume creating a BO or price would have a FBO where up volume would increase as we traverse the Dominant up channel again.
A related question (assuming the volume changes you spoke of take place over time as price crosses the channel) do we anticipate a BO of the current channel following a FTT? Is that why you specify: âdecreasing red volume followed by increasing red volumeâ?
-A
My question is do these volume pace changes occur right around the FTT or over a longer period as price moves through the channel? I was under the impression that, in most cases, there is increased volume around a FTT then volume would decrease as it retraced the channel to the Right Trend Line. After it reached the RTL, price would either continue down (assuming we were in an up Dom. Channel) on increased volume creating a BO or price would have a FBO where up volume would increase as we traverse the Dominant up channel again.
A related question (assuming the volume changes you spoke of take place over time as price crosses the channel) do we anticipate a BO of the current channel following a FTT? Is that why you specify: âdecreasing red volume followed by increasing red volumeâ?
-A
Quote from Atari:
My question is do these volume pace changes occur right around the FTT or over a longer period as price moves through the channel?
As Price moves through the channel from the FTT back to and then through the RTL.
Quote from Atari:
A related question (assuming the volume changes you spoke of take place over time as price crosses the channel) do we anticipate a BO of the current channel following a FTT? Is that why you specify: âdecreasing red volume followed by increasing red volumeâ?
Yes we anticipate a BO after an FTT.
Quote from Atari:
Thanks for the reply Avi. When it was covered later on, was my question regarding how it fit in with the original trading rules cleared up?
Yes.
- Spydertrader
- Status
- Not open for further replies.