Spydertrader's Jack Hershey Futures Trading Journal

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Quote from palinuro:

Ivo,
I'm sure Spyder will have a better explanation, but since he's probably sleeping now, I'll give it a try.

Volume increases throughout the dominant traverse (and it will be predominantly dominant volume). Keep in mind that there are 3 possible ends to a dominant traverse. As volume peaks, price :

1 - hits the LTL,
2 - FTTs, or
3 - creates a volatility expansion.

After 3 price may continue (with more volume), but after 1 or 2 price changes direction as volume peaks. So color and direction change, but volume stays high, and then decreases as price makes the nondominant traverse. Whether that happens intrabar or over a series of bars depends on market pace and the resolution you're monitoring.

I don't think it makes sense to compare black volume before and after the FTT, as you suggest. Assuming we're in a down channel, a black bar before the FTT would occur within a subchannel, whereas black volume afterward would be the nondominant traverse of the main channel--a different resolution level.

Regarding waiting: yes, but I think the goal is to tune yourself well enough to the ebb and flow of volume and the interaction of the various levels of channels that the lag becomes unimportant. To reduce lag at one level you need to have the ability to monitor accurately at the next lower resolution level, etc.

FWIW, I found yesterday after the drop especially tough because there were so many periods of fairly flat volume and price, followed by sudden spikes which were hard to anticipate. Before the spike I didn't know what direction to take, and after it seemed too late to enter.... Perhaps that's why Jack talks about bracketing CCC periods, though Spyder seems to do "OK" without doing that.

Hope that helps.
More...

great post. =)
 
Chart for this morning.

I am noticing a lot of improvement in all areas. Annotating, recognizing FTT's quickly, decreasing non dom volume and recognziging the BO's and FBO's, etc.

Today it was just price turning from up to down at 11:00 that came a little unexpected (price just broke out RTL on ES and I was looking for pt 3).

For some reason I find it easier to recognize quickly a real breakthru of RTL than a point 3 after that.

regards,
Ivo
 

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Had a lot of problems this morning.

I originally had the dark purple channel drawn in after the two tapes this morning and using yesterdays FFT. While the volume gaussians were showing a down trend, the purple channel was obviously off. it wasn't till around 10:30 that I decided to disregard the previous days FFT as point 1 and use todays open.

The 10:00 WRB wasn't much fun either.
:p

I started annotating my FFT calls today too and as an aside dealing with text in quotetracker is a pain.
 

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