Spydertrader's Jack Hershey Futures Trading Journal
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Quote from PointOne:
The most common action is Hold.
I'm giving serious thought to moving to the 6 minute fractal.
Great idea - it would remove those nasty compound fractions from my mental PRV calcs.
Better yet, does anyone know if the DDE syntax for Mak's prv.xls tool has been determined for use with IB data feed?
I refer to the following: http://elitetrader.com/vb/showthread.php?s=&postid=1032748#post1032748
And if any links to user instructions are available (i.e.,such as bi9foot provided with his tool) that would be great.
Regards...
Quote from EstebanUno:
Yes it's the intermediate channels I'm talking about. Thanks for the reminder of the nomenclature. It's not unusual for me to have no new channel when there is a sudden change from up channel to down channel for example, because it takes a while for the point 3 to be established in the new down channel. I'm having a hard time accepting that the extensions of old channels that have been out of play for a long time or by a lot of price action become suddenly important again. If I extend all old intermediate channels forever into the future the chart resembles spaghetti, as someone noted recently.But I'll keep an open mind about this point and watch for those extensions that make sense to me. I should post an example, but not now.
I see your point about wide channels and trading off the tape.
Thanks for the comments. I'm looking forward to the development of the trading frequency you mention. Enjoy the weekend.
I see what you mean regarding the #3point. Sometimes a full traverse and a FTT is in the old channel so you have a new one coming out before the BO. If the #3 forms outside the channel then you have had the BO and FBO.
The older channels are extended as long as they're useful, IMO. I extend them a ways past the price action. If they break out I'm on a new one. I have had an intermediate be valid for three days. Usually the carry over is broken by the first trend of the day. If you scroll out to longer time frames you should have the intermediates traversing the longer term. Scrolling out really helps to confirm where you are with regard to the channels. I'll post some charts on this.
On the TS chart Nkhoi posted you'll find some formatting differences as the R-B volume coding is a little different from most. Usually the software default bar color is determined by the close in relation to the last close, some have it set to the close vs. open. Jack had admonished someone in the SCT journal for focusing on the close and not the concept, but how it's programmed has an effect on the look of your gaussians. Keep that in mind.
The point is, if price is moving down extending the price move, your gaussian is red. Sometimes it's only a tick difference between R or B, especially when going sideways. Sometimes a bar runs way down only to reverse and close up slightly so the volume was split. So taking more of a forest view, you have three possible parts: #1 a move, #2 a pause (where bars may flip flop b-r-b-r, a flaw or lateral move), #3 then a continuation (ex: R2R) or a reversal. #2 doesn't always happen.
The volume spikes can help too as they are usually in the dominant direction. Looking at the long view, connect the tall volume bars. Then move to the ones in between to fine tune. I find that helps me when the gaussians are hard to interpret.
One thing that was causing confusion was if you could have a B2B (B rising, B falling) as a complete gaussian and afterwards a R2B would come indicating a shift to a downtrend; instead of only between the gaussians (B falling to B rising) which is more typical and a shift to the uptrend.
So say price is moving up on increasing volume bars, the volume peaks but price still moves up for a few bars on decreasing volume. On volume we have black rising then black falling. Then price moves down on increasing volume (Red rising) which starts the R2B shift without having had a R2R happen first. This seems consistant with the P/V cycle - volume drying up before the next move, down in this case.
Maybe Jack, Spydertrader or MAK can comment on this.
Regards - EZ
This is the 15 minute. The 30 minute actually looks better. Here you can see that I probably should have redrawn the yellow downtrend channel across the Wednesday and Friday peaks. If you always have a channel extended then there is always a context. All the channels aren't extended, just as needed. The longer the term the longer the channels.
I tried to clean up some of the annotations, but the daily chart is real messy. Sometimes it helps to periodically redraw the channels on a fresh chart so you can see the lines.
-EZ
I tried to clean up some of the annotations, but the daily chart is real messy. Sometimes it helps to periodically redraw the channels on a fresh chart so you can see the lines.
-EZ
Leaving early today but for those following I am posting what I've done thus far.
For the first time today I have been able to identify flaws as such. It just sort of happened. For those trying and not there yet I encourage you to just keep annotating and annotating, it will pay off.
For the first time today I have been able to identify flaws as such. It just sort of happened. For those trying and not there yet I encourage you to just keep annotating and annotating, it will pay off.
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