Spydertrader's Jack Hershey Futures Trading Journal

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I place a tremendous amount of emphasis on my wider dominant trend channels (thick lines) which I carryover from the previous day. Unless some news Item (after hours or pre-market) causes a significant (and substantial) change in market sentiment, I continue to operate off these channels often for several days in a row. The smaller (taped or thin channels) may or may not carryover depending on a number of factors including (but not limited to) gaps.

- Spydertrader
 
Mak -

Interesting commentary. While I think I know what you mean when you say "volume pace", rather than assume - would you please define this?

Thanks
-Au
 
Mak- thanks for the bar-by-bar. That is very helpful.

One quick Q for you. You stated earlier that you were more strict in your channel drawing. Could you expand on that a little? I'm assuming you mean that you don't consider a channel valid unless volume formations agree. accurate? Thanks.
 
@AURUM

Think about pace this way. At any carnival/fair, there is usually this game where the idea is to take a really large hammer and hit a target as hard as you can in order to get some object to hit the bell at the top of a pole. The harder you hit it, the farther up the pole that the ball reaches. If you hit it harder enough, you hit the bell. Hitting the bell isn't important. However, the amount of impact energy is directly proportional to the height the ball reaches. SUCH IS PV! P is the height/distance that is travelled. V is the amount of impact energy that is driving P. When we talk about PACE, it is how much distance is covered in a particular time. For us, it is always a 5M interval. When you have large V, PRICE will travel a relatively large distance. A few months back, I did some quantifying and arrived at the following pace settings based on volume... I recently updated it and the paces have drifted a tiny bit but that is not important. The objective is to be in on the right side of the market especially when it is moving swiftly since the rate at which money is being accumulated is relatively fast. So you see this really all just a time measurement. We are comparing money transfer/flow rates.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1319868>

MAK!
 

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Quote from makosgu:
@rustrader
EXCELLENT QUESTION. If my bar 5 extends beyond the top of bar 4, I plot in a NEW PT3. Why??? Because I am looking at my PRV and I find -PRV. With -PRV (ie. DECR PRV), I am not expecting the bar to BO from the RTL simply because DECR V dictates this is a NON-DOMINANT progression across the channel... I am also still expecting volume to be strong because we are still in the AM action zone. The INCR side of the V means that the HERD is flooding in. When we talk about front running the herd, an expert will front run both the entrance and exit of the herd and use reverses to bank the whole price progression.
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Mak, thanks for answer, but I do not understand you completely. Everething is clear about pt3. Does it mean that you will hold SHORT at Bar 5 until PRV will not increase? So there is no exit criteria like "exit if price at Bar 5 exeeds high of Bar 4 by X ticks" there is "exit (or reverse?) if Bar 5 PRV will increase"?
 
Quote from C99:

Mak- thanks for the bar-by-bar. That is very helpful.

One quick Q for you. You stated earlier that you were more strict in your channel drawing. Could you expand on that a little? I'm assuming you mean that you don't consider a channel valid unless volume formations agree. accurate? Thanks.
More...

Check my bar by bar posts. This is what I mean by strict. It is a PV play by play. The market QBs and I play my part. Offensive play/Defensive Play. Break on 3....

MAK
 
Quote from rustrader:

Mak, thanks for answer, but I do not understand you completely. Everething is clear about pt3. Does it mean that you will hold SHORT at Bar 5 until PRV will not increase? So there is no exit criteria like "exit if price at Bar 5 exeeds high of Bar 4 by X ticks" there is "exit (or reverse?) if Bar 5 PRV will increase"?
More...

I am not as strict as you are. The conditions you mention are IF1/IF2. My slant for channels is that IF1/IF2 is on the RTL. Some people will understand what I mean by this. "NOT INCREASE"??? My exit is if I am on the wrong side of the market. FOR ME, AT ALL TIMES THE RIGHT SIDE OF THE MARKET IS THE RTL. Read carefully my previous post to you, I am "LOOKING" for dominants. If I have a DOMINANT going against the grain (ie. direction of the channel), I reposition and start new channels. Dominants require +PRV. For a -PRV, I am on alert for either new boundaries or for the next +PRV dominant...

MAK!
 
I need to call it quits early today, but wanted to post my chart anyway. It was a MAJOR day. Perhaps not a religious experience, but at least quite magical. My PV schitoma seems to have vanished.

On the attached chart is an arrow. It was a major magical moment. While I pondered my missed FTT, I noticed a very subtle R2R and then the formation (to me a pennant) developed. I thought to myself, "if I were trading, this green bar on light volume would probably be my best opportunity to reverse, and then I'd be looking for a BO downward on increasing volume"

THat's exactly what happened. Also, I am starting to consistantly "read" the PV relationship that seemed so non-existant previously.

Sorry for my child like enthusiasm, I love it when a plan comes together!
 

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Is there a way to save a post in Word with the pic intact? I tried to copy and paste but the picture is gone. I guess I can save them separately and put them back together but I was wondering if there is an easy way to do it.

Mak I find your posts most instructive. Looking forward to more.
 
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