Spydertrader's Jack Hershey Futures Trading Journal

[R/R]

Quote from mephistoII:

nkhoi - is it logical for one to assume then that we can also consider the 'inverses' of the examples you circled?

For instance, considering your top circled example: B V B ... happens at ends of down trends ...

does it follow then that B /\ B would happen at ends of up trends?

I have noticed this pattern ( B /\ B ) at the ends of uptrends, but what I don't know is if it can be categorized only as such. Perhaps we should not try and pigeon hole this stuff - at this point, I really have no idea. Regards ...

isn't this an example? We have diminishing demand at the top or the rally. Picture the red bar at the top as part black vol and part red vol.

 

[mephistoII]

Quote from R/R:

isn't this an example? We have diminishing demand at the top or the rally. Picture the red bar at the top as part black vol and part red vol.

Seems to be, R/R, but I would need to see a bit more chart (context) to say for sure. I do know that anybody who is staying on the right side today must have this stuff down pat

 

[R/R]

Quote from mephistoII:

Seems to be, R/R, but I would need to see a bit more chart (context) to say for sure. I do know that anybody who is staying on the right side today must have this stuff down pat

that rally started 3:20 yesterday. See the chart link I posted previously or your chart for the larger picture.

 

[nkhoi]

Quote from mephistoII:

nkhoi - is it logical for one to assume then that we can also consider the 'inverses' of the examples you circled?

...

if you go into detail turn by turn then it's more like SCT level, is it not? not only that we havn't even touch good old MACD and Stoc, stay tune.

 

[bundlemaker]

I'll be on vacation for next two weeks, so good learning (and trading) to all until I return.

 

[mephistoII]

Quote from R/R:

that rally started 3:20 yesterday. See the chart link I posted previously or your chart for the larger picture.

Yep - turns out that is how I saw it yesterday also

 

[mephistoII]

Quote from bundlemaker:

I'll be on vacation for next two weeks, so good learning (and trading) to all until I return.

Have a great time! I wouldn't dare take two weeks off - I can't keep up as iit is now - lol! Cheers

 

[mephistoII]

Here's a nice example of B/\R just completed

 

[Ezzy]

Quote from nkhoi:

you need to be clear on B2R, R2B, R2R, B2B first, also please see c99 comment on prev page. We are not concern with every possible permutation in the universe, only the one that matter.

nkhoi,

Great gaussian graphics, it shows all the formations possible and was exactly what I was getting at regarding the B2B shift at a peak. The third formation is a B2B at the peak. Which suggests the trend has shifted from up to down as the next expected gaussian would be red rising (R/\B).

I wasn't sure if that was an appropriate or correct interpretation as I was lead to believe that a shift always had to be between the gaussians at the trough. But having a shift at a peak is something I was seeing happen at times, B/\B.

Ex of a typical shift from up to down: B/\RR/\B - the middle being the R2R shift. But I would occasionally see the shift as B/\BR/\B

Thanks for clearing that up. - EZ

 

[Ezzy]

Quote from billp:

Ezzy,

A bit confused here. If the volume is black, its based on the current bar's price closing higher than the previous bar's closing right? We are not talking about current bar's closing versus current bar's opening to determine whether volume bar is black or red? Thanks.

As others have mentioned is depends on the software, generally it's close to close. Today I had a bar where both open and close were the same price and lower than the previous close. It is a black bar on my screen and should be red. So there will be minor differences here and there but don't get hung up on them. That is why it's important to look a little loosely at times - at the price movement.

I noted the discrepencies on the Tradestation chart attached. There was obviously some unique bar coding here. The important thing is the concept, the movement of price with regard to the volume.