Spydertrader's Jack Hershey Futures Trading Journal

[spooz_trader1]

Hey Spyder,

I was thinking about the recent "flaw guidelines" this afternoon and it just occured to me that the guidelines really aren't anything new. Back in the good 'ol pre-Forest days, when we were ID'ing FTT's, I remember committing to memory the following:

If you think you have a FTT but it later turns out to be a flaw, then reverse immediately to get back on the right side of the market.

Since FTT's occur in dominant traverses the above statement implies flaws also occur in dominant traverses.

Is this correct?

thanks,

spooz

 

[PointOne]

Quote from spooz_trader1:

Since FTT's occur in dominant traverses the above statement implies flaws only occur in dominant traverses.

Is this correct?

thanks,

spooz

I suspect Spyder has told us all this many times before and most of what we need is on Page 1, LOL.

I found the first 2 hours tricky and started to have some negative thoughts about trading in general. Then I took a step back and realised how far I had come in just a few months. Incredible really.

 

[jack hershey]

See attached.

This is the beginning of a series of posts to deal with Flaws and prep us for going to the next stage in June.


My posts are too long for the capacity of ET.

 

[Spydertrader]

Quote from jack hershey:

See attached.

Mini-Glossary

Level I - Tapes (leaves)
Level II - Traverses (limbs)
Level III - Channels (Trees / Forest)
MADA - Monitor, Analyze, Decide, Act
Translation - Continuous Price Movement in one direction across Bid / Ask pairs (Tic Chart)
LSL - Long, Short, Long
SLS - Short, Long, Short
Internals - A positive way to say, 'flaws'
Drift - STR / SQU Offset not exactly correct (due to changes in market dynamics throughout the trading day) resulting in skewing of the Premium Chart above or below the Zero Line.
Mode - Continuation or Change

- Spydertrader

 

[ang_99]

Jack, in your word doc. you wrote...

"We saw how volatility expansion on the RTL lead to wider channels and finally FTT's happening on the more difficult width of traverse on dominant movement"


I thought volatility expansion happened on the LTL (left trend line) leading to wider channels..?

 

[Pr0crast]

Quote from ang_99:

Jack, in your word doc. you wrote...

"We saw how volatility expansion on the RTL lead to wider channels and finally FTT's happening on the more difficult width of traverse on dominant movement"


I thought volatility expansion happened on the LTL (left trend line) leading to wider channels..?

Safe to assume it's a typo

 

[Aurum]

Quote from ang_99:

Jack, in your word doc. you wrote...

"We saw how volatility expansion on the RTL lead to wider channels and finally FTT's happening on the more difficult width of traverse on dominant movement"


I thought volatility expansion happened on the LTL (left trend line) leading to wider channels..?

They do - most likely it was a simple typo.

-Au

 

[Pr0crast]

Quote from Spydertrader:

Mini-Glossary

Level I - Tapes (leaves)
Level II - Traverses (limbs)
Level III - Channels (Trees / Forest)
MADA - Monitor, Analyze, Decide, Act
Translation - Continuous Price Movement in one direction across Bid / Ask pairs (Tic Chart)
LSL - Long, Short, Long
SLS - Short, Long, Short
Internals - A positive way to say, 'flaws'
Drift - STR / SQU Offset not exactly correct (due to changes in market dynamics throughout the trading day) resulting in skewing of the Premium Chart above or below the Zero Line.
Mode - Continuation or Change

- Spydertrader

LOL, I see you keep your trusty <a href="http://www.elitetrader.com/vb/attachment.php?s=&postid=1483887">translator</a> close at hand...

Thanks Jack, looking forward to this series.

 

[bi9foot]

Spyder,

I have a question about the dip you labelled on your ES chart at 9:50 am.

At what time did you determine it was a dip?

The reason I ask is that through the whole duration of the 9:50 bar, the PRV volume indicated the bar looked like a FTT and the volume ended up very close to the previous bar (Flaw is not even in my mind due to the vol). It was not until about 9:56:40 of the 9:55 bar did we see the increasing black PRV.

I want to make sure I did not miss any clues that might have alerted me to the dip sooner.

Does the narrow range of the bar (compared to prev bar) or the fact that the price oscillated for a while around a bid/ask pair during the 9:50 bar provide hints?

Could the 9:50 bar be a very short non-dominant retrace as opposed to a dip?

 

[Spydertrader]

Quote from bi9foot:

At what time did you determine it was a dip?

As soon as I watched the 9:55 Bar bounce off a small DOM Wall and then turned into decreasing black Volume on a PRV basis. I do not recall the exact time.

Quote from bi9foot:

The reason I ask is that through the whole duration of the 9:50 bar, the PRV volume indicated the bar looked like a FTT and the volume ended up very close to the previous bar (Flaw is not even in my mind due to the vol). It was not until about 9:56:40 of the 9:55 bar did we see the increasing black PRV.

Not all flaws show significantly less Volume than the previous bar. If they did, we wouldn't see so many people have difficulty differentiating flaws from FTT's.

Quote from bi9foot:

I want to make sure I did not miss any clues that might have alerted me to the dip sooner.

Unless STR / SQU provided a signal (I do not recall if it did or it did not), then you didn't miss anything in the 9:50 AM Bar (based on the current tool set).

Quote from bi9foot:

Does the narrow range of the bar (compared to prev bar) or the fact that the price oscillated for a while around a bid/ask pair during the 9:50 bar provide hints?

Yes. The oscillation at the current Bid / Ask Pair (Tic Chart) in combination with the DOM and T&S does provide clues, but we have yet to discuss those tools in this Journal. I plan to begin the DOM discussion later this week.

Quote from bi9foot:

Could the 9:50 bar be a very short non-dominant retrace as opposed to a dip?

Nope. It's a Dip.

- Spydertrader