Spydertrader's Jack Hershey Futures Trading Journal
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A quick question about the light blue carryover channel you have. I thought about drawing it in using the same points from Wed you have, but the 16:00 bar from Wed appears to throw the gaussians off for the whole channel (ie Red vol is the greatest over the whole up channel). Would you mind quickly explaining this as this caused me some confusion. Thanks!
Anything after the close of the 15:55 Bar usually involves significant numbers of events having nothing to do with directional trades. Hedges, clean up prints and other non-directional activities occur at this time. As such, Jack recommends closing down trading for the day at, or prior to, 16:00 Eastern Time.
In addition, this morning's open, while creating its own down channel within the first three bars, also followed the decreasing red retrace path as prescribed by the light blue up channel. Bars that present seemingly anomalous circumstances often have both increasing and decreasing volume dominating different portions of the bar especially after 4:00 PM. Rather than allow confusion to influence your trading during this time, note how price moves within the channel itself, and more importantly, note how in the final three bars of the day, Price often fails to move in any direction - even on extremely high levels of volume.
Good trading to you.
- Spydertrader
Quote from Pepe:
I will need 3 hours to fully understand this chart
Follow Price at it opens, moves through each bar and closes before opening on the next bar. by following Price in this manner, you'll easily see why I annotated the way that I did. Clearly, I went a little further down the rabbit hole than normal, but i did so in hopes that everyone can see that these methods work on any resolution level.
Let me know if I can provide any additional clarification.
- Spydertrader
I and many others have concluded that you are insane
. And took a few red pills while you were at it :-D
<img src="http://todd.cleverchimp.com/blog/images/copy_dont_link_me.jpg">
Is this a laid-back exercise for you, or does a day with that many actions stress you out? Even a little? Haha... Looking forward to the day when I can venture deeper into the rabbit hole as well... Enjoy the fishing.
-Pr0crast
It's all a matter of perception and perspective. When I first began to learn about trading Futures, I felt overwhelmed - so many damn things to do!! Channels on the YM, Gaussians on the ES, FTT, FBO, 1,2,3 WTF!!! Aaarggh!
Slowly, but surely (over time and as my skills improved) my mental state transitioned from, "Oh geez, hurry, hurry! Need to make a decision now - quick!" to a significantly more relaxed, almost mundane, feeling throughout the day. As those who have traded with me live can attest, I often step outside for a smoke, dial up people around the country to chat over the phone, or simply 'chill' for a few moments while awaiting the next market cycle. I now even find myself (on occasion) telling the market to, "hurry the hell up and move because we both know your going down!" In other words, the same five minute bar, which (at one time) I perceived to be not nearly enough time to monitor (let alone analyze, decide and then act), now feels like an eternity.
Also, keep in mind, the level of detail of these charts increases significantly because I post the charts at the end of the day, so I spend a good deal of the day finding time to 'double check and confirm' the annotations (channel colors match FTT / FBO colors, etc.) which I would have no need to do otherwise.
Again, the whole process stems from asking oneself (frequently and persistently throughout the day),
"What do I need for continuation, and what do I need for change?"
Good Trading to you all.
- Spydertrader
P.S. Nicely done with the lobbying efforts for the Quotetracker PRV Add-on Tool. I watched it work yesterday for the ES and YM in real time. I think many will find the tool very helpful. Thanks also to Jerry Medved and his crew for responding to the request. Now, if Jerry can just fix Quotetracker to chart STR / SQU, I'll dump Qcharts tomorrow.
Good thing you didn't accidently click on those 'indicator' tabs at the bottom of your chart.
- Spydertrader
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