Spydertrader's Jack Hershey Futures Trading Journal
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Quote from optioncoach:
If your line was one setting thicker or if your hand was off by a fraction of a milimeter in drawing the line it would have touched. Isn't that a little too subjective, especially since the line a few bars back never technically touched the line either?
Not knitpicking but that bar came within a hair of the trend line and I cannot see that as a FTT but a bounce off of the line.
Maybe it is just 2 different views
Certain software allows you can snap the lines to the high, low open or close of a bar. This is very precise. If you actually do that in this case you see it was an FTT.
regards,
Ivo
Quote from Spydertrader:
However you wish to view it (FTT or bounce off the Left Trend Line) only matters at the most Coarse Resolution Levels. As we move to Medium and Fine Level Resolutions, both the FTT and LTL bounce produce signals of change. Irrespective of what we 'call' it, we still see a B2B gaussian Shift as Price Breaks the red Down Channel. Besides (whatever it is), at the Forest Level Resolution, doesn't it still form a Point Three of the Olive Colored Channel?
- Spydertrader
That was a skinny hair (like a one year old's hair) away from the LTL Spyder! But I see your point above - with skill one would go long here.
As I said before it may be semantics or different viewpoints but to me a failure to traverse is a failure to traverse the channel. Coming within a hair of a human-drawn trendline is not, in my humble opinion, a FTT as I have seen it defined and I think was the cause for the original question. Not every bar touches the channel as it oscillates in between the trendlines and maintains the integrity of the channel because of numerous factors (width of space between bars, tick size in ES, thickness of line drawn, etc....).
It makes perfect sense as a Point 3 on the other channel combined with a bounce off of the trendline in question which leads to 2 confirming signals of a reversal in price and buy signal. Seeing it as a Point #3 seems stronger for an entry.
The reason I make this point is to avoid questioning every line that is a hair close in the realm of FTTs as opposed to seeing the action of the price at a trendline.
So as Spyder said the final resolution is all that matters which is a buy signal. However how you define it may lead to confusion in other scenarios.
It makes perfect sense as a Point 3 on the other channel combined with a bounce off of the trendline in question which leads to 2 confirming signals of a reversal in price and buy signal. Seeing it as a Point #3 seems stronger for an entry.
The reason I make this point is to avoid questioning every line that is a hair close in the realm of FTTs as opposed to seeing the action of the price at a trendline.
So as Spyder said the final resolution is all that matters which is a buy signal. However how you define it may lead to confusion in other scenarios.
Well. If you can see price does not touch LTL IMO that's an FTT. There are FTT's like this all the time (such as right after volatility expansion) where price does not touch LTL failing just one or two ticks. To me this was an obvious FTT and actually I'm on the lookout for it all the time.
Of course drawing trendlines is a precise job but IMO this is not something subjective.
regards,
Ivo
When using this method, I understand that someone would reverse, hold, or exit depending upon whether one sees a FTT, BO, or FBO. With that being said, does anyone use a hard stop loss, or do you just continue to hold until you see one of the end effects? It would appear that without a stop loss that some trades might go far against you before action would take place.
From my experience of anticipating the FTT before it fully forms is that, by the time I am in and realize that the FTT is a "WTF" half the time I can get out for a .25 profit the other half I get out at my initial entry price. And I assume, with more practice and access to finer tools, I'll probably even get a better price when I first enter and also be able to identify sooner than I do now, if the FTT is legit or not. No need for hard stop as far as I can tell.
9:30 Open
9:35 Down Tape
9:40 FTT Volume R2B
9:45 FBO ....Enter Short@ 1422.25
9:50 Hold Volume R2 It was 1,2,3 channel Down
9:55 Hold Volume R2
10:00 Hold Volume R2
10:05 Hold Volume R2
10:10 Hold Volume R2R Close of this bar is @ 1415.00 P/L +7.25
If one decide to take Profit.....................
9:35 Down Tape
9:40 FTT Volume R2B
9:45 FBO ....Enter Short@ 1422.25
9:50 Hold Volume R2 It was 1,2,3 channel Down
9:55 Hold Volume R2
10:00 Hold Volume R2
10:05 Hold Volume R2
10:10 Hold Volume R2R Close of this bar is @ 1415.00 P/L +7.25
If one decide to take Profit.....................
Ye Freaking Ha...
I was stopped out of the first small Tape Channel up but it took the point 3 down elevator at 1422.75 (June) with the piped in music blaring Ride Sally Ride all the way down to the breakout of the interior down channel of the major down dominant channel at 1415... with a few minor scale outs along the way each time the NYSE Tick dropped thru the floor...
Many times when i needed action i kept clicking my <b>HOLD</b> button which pacified my need to do something...
I Channel Therefore I Am...
cj...
HAVE STOP <img src="http://www.enflow.com/p.gif"> WILL TRADE
I was stopped out of the first small Tape Channel up but it took the point 3 down elevator at 1422.75 (June) with the piped in music blaring Ride Sally Ride all the way down to the breakout of the interior down channel of the major down dominant channel at 1415... with a few minor scale outs along the way each time the NYSE Tick dropped thru the floor...
Many times when i needed action i kept clicking my <b>HOLD</b> button which pacified my need to do something...
I Channel Therefore I Am...
cj...
HAVE STOP <img src="http://www.enflow.com/p.gif"> WILL TRADE
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