Spydertrader's Jack Hershey Futures Trading Journal
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I wasn't trading full time these 2 days. Despite being away most of the hours, I was able to catch up on the happenings (drew the channels and checked the gaussians), then entered the market to pick up a few points. It was great being able to jump in at mid session and not skip a beat.
I missed the big move, sigh, such as life. ;-)
Draw in the Gaussians, Volume Bars and Channels.
- Spydertrader
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- Spydertrader
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I guess I'll start. What really made PV "click" for me was a string of thought processes that was triggered by one of Jack's posts last month, which I have attached to this post as a PDF.
You may have dismissed this post as long-winded or cheesy, but look at it again and really try to understand where he is coming from.
There is a reason Jack always talks about the market in organic "metaphors." That is because the market IS organic. It is the product of something organic (human psychology) and it behaves as such. It is like the collective consciousness of all the participants. It is like a creature. It breaths in and out. It has sentiments, and those sentiments change from time to time. If you take the time to understand the beast you can harness its power. Conventional traders enter a master/slave relationship with it, and abuse it at every opportunity, just waiting to jump on a perceived weakness. Instead, what we seek is a partnership. We are not meeting force with force, but rather taking the aikido approach and using what force already exists to produce the most efficient, powerful result.
Having thought about all this, do you really think this creature is going to cooperate with you if you keep it in a mechanical cage all the time? The answer is no. I doubt anyone would be able to skillfully ride a horse, raise a child, or drive a racecar going only on a laundry list of instructions and rules. Success requires understanding and being tuned in to what is going on. The next step after becoming an expert at drawing mechanical channels by the book is to learn to understand what those channels mean in the NOW. Do they reflect what is going on this instant (are they "operating")? Are there any channels missing from your chart? Might your channels influence future action? What do they mean to you? To the market? Is there an FTT coming up?
Gaussians help you to answer these questions. By witnessing the market breathing, we see the context for its current state of existence. By understanding its natural sequence, through monitoring it we can spot abnormalities (FTT, B2B, R2R, etc) and readily anticipate the possibilities for what is to come next.
I've said it before and I'll say it again-- I think the most useful tool for ingraining the gaussian sequences into your brain is to video debrief. Watch the market every day and make Camtasias so you can watch them in fast forward. Drill the sequences deep into your subconscious. Understand what these sequences are going to do for YOU.
Eventually you'll learn to spot the "critical points" that gaussians show us. Maybe the trough of this gaussian is a point 1. Maybe the peak is a point 2 or an FTT. Etc.
8 downloads so far, I haven't seen any answers to this drill posted. Don't check other's responses before attempting to do your solution.
Seriously folks, if you have problems with PV and Gaussians make a serious effort to do the drills correctly.
I looked at the pricebar drill and said to myself this should be easy. But guess what, it was an excellent drill that tested pretty much everything about PV and gaussians.
Yes, me too on gaussians... and how to ignore the small ones and concentrate, for now, on the major ones...
cj...
cj...
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