Spydertrader's Jack Hershey Futures Trading Journal
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[/QUOTE]Quote from excav8tr:
LB .... can you see the light red channel depicting the short traverse, it is drawn in using NOW (prior days close and bar 1 of the new day) Great now you see it .... the volume tells you that the direction has become dominant, the retrace volume slips in as we move through bars 4,5,6, (showing up as HVS) and finally get to 7 which is labeled pt 3, but what has happened? .... The now channel (thin RED) has been adjusted to the correct slope and direction meaning you now can SEE what a PT 3 adjustment is all about. we worked with two bars to give us a preliminary vector, and as the market moves into the day we recieve information to allow us to NAIL the BROWN channel (A PT3 Channel) into place and ROLL from there. The same sequence happens all day long that is what explains all those pesky lines spy draws ALL DAY LONG
HTH
Regards,
EX
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1318091>
Thank you Spyder and EX. I think I am getting this. I did observe the red trend line and then the brown at the FTT.
EX'x reply brings up another point I have been thinking about for several weeks. That is, when or how do we know to do a PT 3 adjustment? I have seen them with a few bars such as this and also a longer period of time, on various charts including the JH charts I have reviewed. But I have not mastered this detail yet.
I know that most of these questions have been answered before but I must of missed this one.
I am trying to keep my questions like this to a minimum because I know everyone is working hard on this journal and the equities. Of course, I really appreciate this because the fog seems to be gradually lifting.
Thank you for your help.
[/B][/QUOTE]
I was attempting to bring your attention to the fact that a 2bar channel is preliminary meaning the slope is usually not sustainable, I DO NOT mean to suggest that you move the initial channel, but instead regcognize that the new BROWN channel uses both the new information and the light red information to give you a picture with much more context than the 2 bar channel can provide. Putting you in the GROOVE
Regards,
EX
I was attempting to bring your attention to the fact that a 2bar channel is preliminary meaning the slope is usually not sustainable, I DO NOT mean to suggest that you move the initial channel, but instead recognize that the new BROWN channel uses both the new information and the light red information to give you a picture with much more context than the 2 bar channel can provide. Putting you in the GROOVE
Regards,
EX [/B][/QUOTE]
Thank you for your reply.
I think I understood that the 2 bar channel was just the preliminary one as a short term guide.
I have seen channels expanded by relocating point three after some period of time, significantly longer than a 2 bar channel. I recall one right off on a JH chart. Perhaps I can locate the chart. Anyway, I have been contemplating when to do this.
Thanks
There have been several responses to your question but none mentioned the aqua(?) taped long channel shown on your chart near the end of the day Wednesday. Just after your green point 2 and HVS there is an attempt to traverse the taped channel which failed. Therefore I think there should be an FTT shown indicating the reverse to short at your brown point 1.
Perhaps this is the FTT you were searching for.
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