Spydertrader's Jack Hershey Futures Trading Journal
- Thread starter Spydertrader
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I'll throw mine up when I get home. Keep in mind now, we have the whole FOMC in action. When the ball starts rolling, on FOMC days, I only plot the RTL since every move tends to be a forceful leg. In time, we will get to see and know why. I see I forgot to put up yesterdays too...
MAK
MAK
FWIW, I thought I'd post a ES daily snippet to show the longer term channel that is currently being surfed.
I didn't have my workspace open yesterday but one of the first things I noticed this morning was that yesterday pierced the longer-term RTL for ONE 5 min bar and immediately moved back into the channel on the next bar. There were several FBO's of this channel yesterday as well.
I don't recall when I drew in this longer-term channel (dark green) but it was earlier in the month.
Ignore the "messy" thin lines when viewing this snippet. These are the TL's drawn in the 5 min fractal.
Note to myself: update the last couple of traverses in the daily fractal...
Here's the daily fractal:
<IMG SRC=http://www.elitetrader.com/vb/attachment.php?s=&postid=1344525>
spooz
I didn't have my workspace open yesterday but one of the first things I noticed this morning was that yesterday pierced the longer-term RTL for ONE 5 min bar and immediately moved back into the channel on the next bar. There were several FBO's of this channel yesterday as well.
I don't recall when I drew in this longer-term channel (dark green) but it was earlier in the month.
Ignore the "messy" thin lines when viewing this snippet. These are the TL's drawn in the 5 min fractal.
Note to myself: update the last couple of traverses in the daily fractal...
Here's the daily fractal:
<IMG SRC=http://www.elitetrader.com/vb/attachment.php?s=&postid=1344525>
spooz
As January draws to a close, I wanted to make sure everyone understands several basic concepts before moving forward.
Resolution
Referring to 'level of detail,' beginners should focus on the 'Coarse' Levels - or what I commonly refer to as 'The Forest.' Coarse level resolution has the beginning trader focus on trading 'FTT to FTT' intraday. These are the major trends we often see throughout the trading day. Following the FTT's which present themselves at this level provides 4 to 8 trades each day. We refer to these traders as 'FTT Level' traders. 'Sub FTT' Level traders look for FTT's occurring within the 'Legs' of the trading day. 'Sub-Sub' FTT traders look for FTT's within the Traverses (taped channels). See Attached 'Levels' Chart Below.
Gaussians
Focusing on these repeatable Gaussian patterns seen time and time again permits the transitioning trader to see how a retrace turns into a reversal. Not only must one understand how a \/ - B2B or a \/ - R2R allows a trader to anticipate market turns, but also, everyone needs to understand how the Gaussian Patterns show the difference between Change and Continuation. Remember, the system differentiates between continuation and change. This subtle difference creates the needed mindset shift required to 'see' the market for what it really is. A beginning trader must understand Gaussian Volume Formations prior to moving forward with the curriculum.
Sufficiency
Currently, our 'complete data set' results from viewing Price and Volume changes within a context. Channel trend lines provide our context along with market sentiment. An FTT marks the moment at which we see sentiment change. When observing the input parameters (currently ES Price and Volume), we reach conclusions based on complete data sets - meaning price and volume - and not simply one alone. When we use complete data sets to reach a conclusion, we say we have 'sufficient' information to proceed. we do not seek additional data beyond this point. As we move forward and add additional tools to obtain additional information, this concept becomes increasingly important. In short, when we have enough data to reach a conclusion, we do not seek additional data. Instead, we take action.
Time
Lastly, a beginning trader must understand the value of time and experience. If you have reached this point in the Journal and have not practiced locating the FTT's (using ES price and Volume only) for a minimum of 20 trading days, please do not continue reading past this point until you have completed the 'January' portion of the syllabus. Failure to take the time to build a proper foundation provides a recipe for certain failure. Allow yourself the time needed to absorb the material. The number one mistake beginning traders make (when learning a new system) is allowing their desire to reach 'Expert Level' Status to override their common sense. Take the appropriate time to prepare yourself at each level, and do not rush the process.
---------------------------------------------------------
In a couple of days, I plan to introduce the February Portion of our curriculum. At that time, expect to see a few examples which should clear up any confusion - as to whether or not the YM leads the ES. It does. After I return home (I'm still in Tucson at present), I plan to review the posts made over the last 2 weeks in an effort to get myself back up to speed.
Until then .....
Good Trading to you all.
- Spydertrader
P.S. To those of you who made it to Tucson this week, I hope you found the information presented helpful to your understanding.
Resolution
Referring to 'level of detail,' beginners should focus on the 'Coarse' Levels - or what I commonly refer to as 'The Forest.' Coarse level resolution has the beginning trader focus on trading 'FTT to FTT' intraday. These are the major trends we often see throughout the trading day. Following the FTT's which present themselves at this level provides 4 to 8 trades each day. We refer to these traders as 'FTT Level' traders. 'Sub FTT' Level traders look for FTT's occurring within the 'Legs' of the trading day. 'Sub-Sub' FTT traders look for FTT's within the Traverses (taped channels). See Attached 'Levels' Chart Below.
Gaussians
Focusing on these repeatable Gaussian patterns seen time and time again permits the transitioning trader to see how a retrace turns into a reversal. Not only must one understand how a \/ - B2B or a \/ - R2R allows a trader to anticipate market turns, but also, everyone needs to understand how the Gaussian Patterns show the difference between Change and Continuation. Remember, the system differentiates between continuation and change. This subtle difference creates the needed mindset shift required to 'see' the market for what it really is. A beginning trader must understand Gaussian Volume Formations prior to moving forward with the curriculum.
Sufficiency
Currently, our 'complete data set' results from viewing Price and Volume changes within a context. Channel trend lines provide our context along with market sentiment. An FTT marks the moment at which we see sentiment change. When observing the input parameters (currently ES Price and Volume), we reach conclusions based on complete data sets - meaning price and volume - and not simply one alone. When we use complete data sets to reach a conclusion, we say we have 'sufficient' information to proceed. we do not seek additional data beyond this point. As we move forward and add additional tools to obtain additional information, this concept becomes increasingly important. In short, when we have enough data to reach a conclusion, we do not seek additional data. Instead, we take action.
Time
Lastly, a beginning trader must understand the value of time and experience. If you have reached this point in the Journal and have not practiced locating the FTT's (using ES price and Volume only) for a minimum of 20 trading days, please do not continue reading past this point until you have completed the 'January' portion of the syllabus. Failure to take the time to build a proper foundation provides a recipe for certain failure. Allow yourself the time needed to absorb the material. The number one mistake beginning traders make (when learning a new system) is allowing their desire to reach 'Expert Level' Status to override their common sense. Take the appropriate time to prepare yourself at each level, and do not rush the process.
---------------------------------------------------------
In a couple of days, I plan to introduce the February Portion of our curriculum. At that time, expect to see a few examples which should clear up any confusion - as to whether or not the YM leads the ES. It does. After I return home (I'm still in Tucson at present), I plan to review the posts made over the last 2 weeks in an effort to get myself back up to speed.
Until then .....
Good Trading to you all.
- Spydertrader
P.S. To those of you who made it to Tucson this week, I hope you found the information presented helpful to your understanding.
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1344558>
What I am saying to you is .....
I agree on the importance of annotating channels and Gaussians.
- Spydertrader
okay ...okay...
There are two guys dueling it out on laptops in our kitchen as I speak..........
LOL....
There are two guys dueling it out on laptops in our kitchen as I speak..........
LOL....
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