Spydertrader's Jack Hershey Futures Trading Journal

[Ezzy]

Spydertrader,

Today was tough going into the low volume session after 11:00. Lot of smaller channels and late realization of a larger lateral. Also had some trouble reading the gaussians in low volume - 'cause we really didn't get a dominant until around 13:00.

Any suggestions on handling these periods?

Regards - EZ

 

[ivob]

Quote from Ezzy:

Spydertrader,

Today was tough going into the low volume session after 11:00. Lot of smaller channels and late realization of a larger lateral. Also had some trouble reading the gaussians in low volume - 'cause we really didn't get a dominant until around 13:00.

Any suggestions on handling these periods?

Regards - EZ

I also have a question related to this. I notice when there's more lateral movement the 1-2-3 setups come faster after eachother than when there's more direction. Is this something you can confirm?

regards.
Ivo

 

[Spydertrader]

Quote from Ezzy:

Any suggestions on handling these periods?

Anytime you find things confusing, head to the sidelines until you can figure out the 'right' side of the market. If you have reversed a few times before having the realization the market had entered into an HVS, go back to determine which mode the market signaled prior to the confusion, locate a point where re-entry makes sense, and continue onward. Once we add the DOM and tic charts later in the year, trading within the HVS (or any lateral of sufficient range) becomes much easier.

Quote from ivob:

I also have a question related to this. I notice when there's more lateral movement the 1-2-3 setups come faster after eachother than when there's more direction. Is this something you can confirm?

In order to capture the smaller, shorter trends within a market lateral, one would need to move down into finer levels of resolution. As such, change occurs on a more rapid pace. Your observations with respect to today's market action mirror the same activity occurring normally on a much faster fractal.

- Spydertrader

 

[pitbulltrader]

WOW..how does someone come on board to this thread without having to read over 400 pages? I used to follow Jack years ago when he was promoting the "slope of the pairs" on the 30 minute time frame. Not sure if he stiill uses it...Does he still have a pony tail?

Pitbull

 

[Steve Tvardek]

I was lucky, I started reading in mid January and there was only like 50 pages to get caught up on

Quote from pitbulltrader:

WOW..how does someone come on board to this thread without having to read over 400 pages? I used to follow Jack years ago when he was promoting the "slope of the pairs" on the 30 minute time frame. Not sure if he stiill uses it...Does he still have a pony tail?

Pitbull

 

[Ezzy]

Quote from Spydertrader:

Anytime you find things confusing, head to the sidelines until you can figure out the 'right' side of the market. If you have reversed a few times before having the realization the market had entered into an HVS, go back to determine which mode the market signaled prior to the confusion, locate a point where re-entry makes sense, and continue onward. Once we add the DOM and tic charts later in the year, trading within the HVS (or any lateral of sufficient range) becomes much easier.



In order to capture the smaller, shorter trends within a market lateral, one would need to move down into finer levels of resolution. As such, change occurs on a more rapid pace. Your observations with respect to today's market action mirror the same activity occurring normally on a much faster fractal.

- Spydertrader

That makes sense, to sideline and see what mode you were in prior to the confusion. Some of the confusion comes at times where the volume has slowed, but not dry up. For example what looks like a retracement but it keeps drifting against you or walking sideways, as you wait for confirmation . After a while you start thinking: it's been moving against me for a while, I'm on the wrong side. So better to sideline than reverse. Wait for a clear sign of change.

Other times when looking for confirmation in this situation and getting +PRV, the thinking is here's confirmation, and getting a FBO instead. For that error, use more than one signal of change.

Thanks - EZ

 

[Avi 8]

Trading today did not have the volume for beginner method traders after about 11:15am until 1:15pm.
Beginner method needs around 9000-10,000 contracts on a bar, to insure sufficient volatility to profit.
Beginner volume dryed up again around 2:30pm and lasted for another hour. I imagine this gets worse in the summer.

-Mike

 

[Ezzy]

Quote from Avi 8:

Trading today did not have the volume for beginner method traders after about 11:15am until 1:15pm.
Beginner method needs around 9000-10,000 contracts on a bar, to insure sufficient volatility to profit.
Beginner volume dryed up again around 2:30pm and lasted for another hour. I imagine this gets worse in the summer.

-Mike

When Jack originally went through the ES trading, begining level traders were to sideline during dry-up or as we went into CCC. But I don't recall Spydertrader mentioning that or a 9,000 cut off, as this is a slightly different road to the same place.

At this level it is much easier trading with more volume and volatility. I'd expect more days like this as we get closer to Summer, so maybe it's a good idea to consider that - sidelining on low volume until the afternoon BO.

Regards - EZ

 

[Avi 8]

Quote from Ezzy:

When Jack originally went through the ES trading, begining level traders were to sideline during dry-up or as we went into CCC. But I don't recall Spydertrader mentioning that or a 9,000 cut off, as this is a slightly different road to the same place.

At this level it is much easier trading with more volume and volatility. I'd expect more days like this as we get closer to Summer, so maybe it's a good idea to consider that - sidelining on low volume until the afternoon BO.

Regards - EZ

Thanks EZ,

I thought I read it in this journal but it was in the Equities II journal page 684.

Spyder wrote:

...The answer is: Price and Volume. Learn to do two things with volume. One, learn to use PRV (Pro-Rata Volume) to correctly anticipate where volume finishes at the end of the bar. Beginners should see 500 contracts in 15 seconds, 1000 contracts in 30 seconds or 2000 contracts in the first minute, before entering into a trade. (Yes, Yes, I know. Volume often 'dumps' into the market later (3rd, 4th or final minute) in the bar, but a beginner doesn't worry about these things for now). These higher levels for PRV normally translate into the volatility required for beginning ES traders to profit (See Mak's Post regarding contract volume and price volatility). Two, Compare the anticipated Volume in the current bar to the known volume in the previous bar. Do you anticipate improved volume? Is the volume headed in the same direction (red vs black)? Beginners should want to see improving volume (Jokari Window) moving in the same direction (red to red or black to black) in an effort to catch those nice 'Rocket Trades' made famous by easyrider's posts...

-Mike

 

[Audkid1]

Spyder, I have a couple of Q's. I realize this is bug level stuff but I would like your reaction to this snapshot of this am's stretch/squeeze. At approximately 10:02 when the YM and ES shot up the stretch/squeeze had a negative spike. Was this an aboration? Does the stretch/squeeze always or sometimes follow the same direction as price? Is there an average amount of times that you would change the premium amount in a day? If today is an average example, it seems that it's wider in the morning and afternoon and smaller during the lunchtime drift. Is this correct? Or should I have some chocolate covered ants and not worry about it?