Spydertrader's Jack Hershey Futures Trading Journal

[dkm]

Quote from Jander:

Not sure I am following you here...

I suspect that we are mixing resolution levels.

The 14:10 ftt began a short tape. The high of 14:20 gave us a pt3, at 14:30 we have a stall, at 14:35 we have an ftt of the tape and peaking vol. However, the tape RTL is broken on reducing black volume, implying short channel still intact, requiring us to anticipate a new pt3 short (blue) and to widen the short channel. Price drives lower after the 14:45 bar opens but we get an intrabar shift giving us an ftt of the blue channel, and 14:50 gives us the RTL BO on increasing black vol and b2b. After an RTL BO we are looking for a pt 2. This is formed at the high of 14:50 and we are anticipating a pt 3 long. Although 14:50 is an ftt at tape level, we are looking for our pt 2 and a subsequent pt3 long. The 20sma comes into play providing support and increasing black vol at 15:10 confirms the pt 3 long (green).

It was unlikely that the 14:50 bar could be an ftt because we had just seen a b2b and we had yet to see a pt2 and a pt 3, plus flaws etc which we would anticipate before the next ftt.

I hope that makes sense.

 

[dkm]

I would like to mention that in the above post, I used the word "tape" when in fact I meant "narrow pt3 channel". My apologies for any confusion.

 

[Jander]

Quote from dkm:

I suspect that we are mixing resolution levels.

The 14:10 ftt began a short tape. The high of 14:20 gave us a pt3, at 14:30 we have a stall, at 14:35 we have an ftt of the tape and peaking vol. However, the tape RTL is broken on reducing black volume, implying short channel still intact, requiring us to anticipate a new pt3 short (blue) and to widen the short channel. Price drives lower after the 14:45 bar opens but we get an intrabar shift giving us an ftt of the blue channel, and 14:50 gives us the RTL BO on increasing black vol and b2b. After an RTL BO we are looking for a pt 2. This is formed at the high of 14:50 and we are anticipating a pt 3 long. Although 14:50 is an ftt at tape level, we are looking for our pt 2 and a subsequent pt3 long. The 20sma comes into play providing support and increasing black vol at 15:10 confirms the pt 3 long (green).

It was unlikely that the 14:50 bar could be an ftt because we had just seen a b2b and we had yet to see a pt2 and a pt 3, plus flaws etc which we would anticipate before the next ftt.

I hope that makes sense.

We are in agreement re: the 14:50 bar. I did not have it marked as an ftt, as tape ftts are below my preferred resolution level at the time. I was only trying to figure out why bundle was viewing it as such.

In addition, I agree with the rest of your assessment except the 14:10 ftt . I saw it as a ftt at 13:55/14:00, followed by a dip and then the 14:10 bar beginning (resuming) the dominant red downmove. I may be jumping to conclusions in that I am not 100% on flaws yet, but I have been working harder to recognize dips as they are by far the most frequent and troublesome, in my opinion. Hope things are going well for you David...

 

[bundlemaker]

I'm getting the distinct impression the universe wants me to wait on posting this (first monitor power switch was wacko, then gold old XP went blue screen, then my IE with the post was sucked into a quantum tunnel). Oh well, I'm stubborn.

So....all laterals are NOT flaws. Oops. Did it again. I have been trying to shoe horn all lateral price movement into one of the flaw forms.

Knowing this is not correct, I contemplated how one manages lateral movement that is not a flaw. I mean, how do you annotate it? So I went back to the chart in question. I looked at it and said "what is this then?"

Low and behold, I see a pt3 down channel with an FTT, where before I saw a flaw. Then, the down channel RTL is broke on + blk volume, BEFORE price even leaves the lateral movement. Talk about a trader on crack.

I still have a HUGE block about believing I can sort this all out, but I wanted to have some kind of proof that I can, so I can't BS myself down the road. Thanks for putting up with my little story. Hopefully there's a lesson in there somewhere

 

[Spydertrader]

Quote from bundlemaker:

So....all laterals are NOT flaws.

I did not say this.

Forget flaws / not flaws. That distinction does not apply to this lesson.

I said you had lateral movement and not a lateral formation. The former has the trader looking at the close of each bar as it closes inside a subsequent number of bars. The latter results from a Price formation determined by Highs and Lows creating a lateral channel. We often see lateral movement by noting decreasing dominant volume within a trend. A lateral formation obviously has lateral movement within it, but not all lateral movement results in a lateral channel.

In other words, all poodles are dogs, but not all dogs are poodles.

- Spydertrader

 

[bmonte]

Did I miss Spyder's 5 min ES chart for yesterday? I keep going over this Journal and don't see it. Can someone help me in my blindness??

 

[Spydertrader]

Quote from bmonte:

Did I miss Spyder's 5 min ES chart for yesterday? I keep going over this Journal and don't see it. Can someone help me in my blindness??

I haven't posted a chart in the last two days due to not having watched the market (working vacation and all). I apologize for any inconvenience.

- Spydertrader

 

[bmonte]

Quote from Spydertrader:

I haven't posted a chart in the last two days due to not having watched the market (working vacation and all). I apologize for any inconvenience.

- Spydertrader

We are greatful when we get them. Thanks.

Enjoy your vacation!

 

[ticktrade]

I'm under the impression that both lateral movement and lateral formations will exit in the direction they entered. If this is not correct, when you return from your vacation could you provide more clarity on this subject please. You mentioned look at the closes, I may have missed something but this is the first time I've seen this mentioned. I will review and see if I can draw my own conclusion in the meantime. I saw this as a lateral and waited for a continuation up.
I recognize most flaw and lateral patterns however what to name them isn't always clear and I'm not concerned with this, just as long as I recognize them and stay on the right side of the market.
Hope your first working vacation is going well. Look forward to your return and wrap up of this excellent journey.

Quote from Spydertrader:

I did not say this.

Forget flaws / not flaws. That distinction does not apply to this lesson.

I said you had lateral movement and not a lateral formation. The former has the trader looking at the close of each bar as it closes inside a subsequent number of bars. The latter results from a Price formation determined by Highs and Lows creating a lateral channel. We often see lateral movement by noting decreasing dominant volume within a trend. A lateral formation obviously has lateral movement within it, but not all lateral movement results in a lateral channel.

In other words, all poodles are dogs, but not all dogs are poodles.

- Spydertrader

 

[Jander]

Chart - 08/23/07