Spydertrader's Jack Hershey Futures Trading Journal

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Quote from babs2000:

Because i didn't see the YM leading the ES on the 1 second bar chart, at least at the points i have looked (swings).
I understood that leading means the change (turns, swings) could be identified earlier on the YM than the ES, thats why i used the 1 second bar chart....
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Welcome to the forums babs2000,

The fractals you refer to are not taught nor employed in this technique. The YM is a medium level tool - This means it is incorporated and exploited once the trader has understood the course level tools (i.e. 5M ES, Channels, Gaussians, PT3, FTT, FBO, P/V relationship) used to implement Jacks trading techniques.

Jack and Spyder mention many times that there are no shortcuts to mastering this technique. It is critical that the student put in the time to understand how the techniques and tools layer on top of each other to develop a richer view and understanding of the market and being/staying on the right side.

If you are interested in reading Spyder and Jacks comments on the YM you can find them starting here:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=83604&perpage=40&pagenumber=21

If you are interested in the technique in general and see potential from its usage then I would strongly encourage you to spend time and read/study this wonderful journal, which SpyderTrader and others have graciously provided, from the beginning.

Best wishes in your journey!
 
Quote from babs2000:

Because i didn't see the YM leading the ES on the 1 second bar chart, at least at the points i have looked (swings).
I understood that leading means the change (turns, swings) could be identified earlier on the YM than the ES, thats why i used the 1 second bar chart.



I thought that the FTT's, which are also significant highs or lows, signal change.

I think that a 5min ES chart shouldn't be compared to a 2min YM chart to find out if there is a leader, it should be the same time fractal.

Why? If leading doesn't mean earlier swing high/lows but earlier break of trendlines, these trendlines should be drawn the same way. Especially for tapes, where only a few bars are used, the lines on a 5min chart can be very different than on a 2min chart.
If you look at the extreme case of a 2 bar tape, the defining times are 5min apart on a 5min chart, but in reality these 2 points could be just a few seconds or 10 minutes apart, so you could have a much bigger or smaller slope on a chart with shorter (=precise) time bars. This could lead to the effect of 'the 1min ES leads/lags the 5min ES'

On the Volume side, i think there is a tendency to draw different conclusions from the volume histograms for different time resolutions, just compare a 15min (forest) with a 1min (branch?) histogram.
So i think to see if and how the YM leads, the bar intervals should be the same, because of both, the trendlines and the volume.

I have drawn some trendlines (tapes) on a 1 second bar chart, i couldn't see the YM break its lines earlier than the ES.
It would be interesting to see if volume provides the leading effect.

I hope you understand my german-english, its difficult for me to find the right words.
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Your German-English is considerably more comprehensible than my English-German would be, so no problems. I should alert you to the fact that I am not the thread's oracle so what I have to say should be taken taken con granis salis.

FTT's need not be a significant high or low but indeed they do signal change. The nonequivalence of the time fractals while at first confusing should be viewed in the context that the underlyings really are different beasts ($INDU and $SPX are not the same and it has to do with how the smart money plays [= manipulates] these instruments). Which is to say that if one compares the 2 min ES and 2 min YM they do not give the same FTT's when looked at within the framework of this trading methodology.

There are a number of ways to "dissect" a bar of a given time fractal and in this method a set of "fine tools" are used to do this. I ain't there yet but do have enough comprehension of what is entailed to be able to say that these short time frame methods involving DOM (depth of market) and OTR (1 tick range) charts sont tres forts.

With respect to volume it is safe to say that it is of paramount, if not singular importance for the effective use of the protocol. To get a feeling for this, might I suggest you do an ET search for Jokari Window and read a little bit about how this way of looking at the markets melds with the methods espoused here.

Bottom line is - volume rules price.

I hope this helps and when trying to whack your way through the mountain of material, be mindful of what you extract. In the words of the good doctor: "It should be simple, but not too simple".

Regards,

lj
 
Quote from cnms2:

And this is what followed, and my reversal point:

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1686679>
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what if price taping away quickly without forming a p3 at YM? will you forgo the trade? in that case do you think RT bo with increasing volume would be better?

Thank you
 
1st chance: pt1 (FTT)
2nd chance: tape's pt3
3rd chance: bar's BO

If you missed it, don't chase it!
Quote from ericta:

what if price taping away quickly without forming a p3 at YM? will you forgo the trade? in that case do you think RT bo with increasing volume would be better?

Thank you
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Quote from cnms2:

1st chance: pt1 (FTT)
2nd chance: tape's pt3
3rd chance: bar's BO

If you missed it, don't chase it!
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ah yes, the 3rd chance... :)
that pretty much covers everything.
 
Quote from Grob109:

... The 81 bars can be divided into four kinds of segments: legs, 2point trades; 3tick trades and sidelining when the signal is less than noices. The segments are determined by the horizontal volume lines: DU for sidelining; low for 3 tick; medium for 3tick to 2 points; high for 2points; and extrodinary for leg trading. ...
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