Quote from spooz_trader1:
Assuming this snippet is from the same day as Bearbelly's (1/11/07 am), I thought I'd post mine as well to discuss my attempt at PV for the am.
Notice my first FTT. Vol had just made a gaussian peak and price was beginning to retrace. On the next bar, price hit the TL and bounced. Although I may be wrong, I still consider the FTT to be valid (because price didn't traverse to the LTL), but price didn't BO.
My next "potential" FTT appeared on peaking volume (so much that I drew my first gaussian line) and price turned intrabar. However, price turned again and pushed higher. Also, price never made it back to the TL. So, this FTT became a !FTT for me.
After price pushed higher with increasing Vol, the next potential FTT appeared. This time, price turned with follow through short, BO'd the TL on a non-dominant traverse.
Next, the current guassian showed decreasing Red Vol and we ended up FTT'ing out of the non-dominant traverse into CCC.
I think this am is a good example of PV in the form of gaussians and FTT's. And it also shows where one (me) thought an FTT appeared but really didn't.
Sorry for taking up a big part of the page...
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spooz
Here are some thoughts on the two pics you had in your post.
The lower snip starts out well.
But you pause in annotating as the dom traverse begins yet once again.
Were you to draw it you would see the ftt you typed is a good one for the missing annotation on the dom traverse.
A non dom follows and goes to the RTL and the Dom traverse follows again and, again you didn't annotate it.
There is a lot of time and the lines are thin and still allow you to see the bars, etc.
what you get if you do the dom and the non dom traverses is a good way to be able to make the two halves of the volume Gaussians fit in with the price movement on this important level of detail. (Dom increasing first half and non dom decreasing second half)
As you can note in the recent ET pages, there are people on several levels of understanding.
you can see that if a person not annotating price began with any level, then he could see the value of additional lines of various weights and finally lines of all needed weights and in a color scheme as well (Spyder level of exactitude).
This leads to the volume Gaussian undertakings and moving up to a complete level of annotation. Rays always extending out as well.
With thin traverses always in the NOW and projected past NOW. With the envelope of the traverses (as point 3 is achieved from two traverses). Both are projected into the white space. And with the halves of Gaussians making up Gaussians superimposed on the levels of the rays, a person is up-to-date and riding the current bar (he can know the probability distribution of the bar final height as well) and be doing PRV with the volume of the forming bar.
The benefit is that he is ready, after a month of repetition of this, to add another layer to his ingrained belief system in his conscious and larger unconscious mind.
At this point, he also has the ability to see trends run and turns be made in the period of overlap of consecutive chanels.
This is a trader's dream and further it is symbolically annotated with respect to price and volume symbols.
He is doing 4 to 10 trades a day using FTT, BO and FBO, pts 1, 2, and 3 and some internal formations.
The whole of volume is labelld by the ray level names and the Gaussian symbols and the trasition symbols that associate with retraces becoming reversals.
In effect the coarse timing of the market is understodd, annotated in advnace and is roughly tradable through the entire day.
This is the foundation of the continue and change orientation of the P V relation.
You must have in your annotation a thin line level of traverses or pattern there for every bar from now on.
Once you have "containers" you can put FTT's in the containers on the correct level and every level of channel and traverse annotation.
I didn't do the chart for you but you can do it (add the few lines) and post it so the difference may be seen and understood.
I would say to others who are just at the observation level or who feel that it isn't worth much, to do it for the last week over the three day break we are having. Take blank 5 minute price and volume daily charts and construct, after the fact, illustrations of this level of monitoring, analysis, decision making and action. Fill in the symbols of price and volume. you can make up a logging sheet and fill it in as you go (about 20 pages of logs).
Add trades to the logs using the three rules. For the most fun, go high stakes and trade 50 contracts doing this FTT trading.
Then when you trash this approach, if you do, you will be damn sure that what you ARE trading beats this beginner skill level at 50 contracts...
. I need to improve annotating the BO's and FBO's as well. I'm getting better/faster at annotating but keeping up in real-time takes consistent effort, as you know.