Spydertrader's Jack Hershey Futures Trading Journal
- Thread starter Spydertrader
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I have been laboring under the idea that you draw a Gaussian to show the price action's movement from one side of the channel to the next in the context of volume. Dominant to nondormant. As a result, the Gaussian was to follow, for example, the low to high (for an uptrend) of the price action on the volume bars.
I now believe (hopefully correctly) that the Gaussians are to capture the low to high volume in a (up trend) channel. This may or may not correspond directly with the price action in the channel. So if the volume determines an down trend channel, the Gaussians will track the highs and lows of the volume as it operates inside the channel.
If I continue to be whacked out on this I look forward to a swift 2 X 4 to the forehead
I now believe (hopefully correctly) that the Gaussians are to capture the low to high volume in a (up trend) channel. This may or may not correspond directly with the price action in the channel. So if the volume determines an down trend channel, the Gaussians will track the highs and lows of the volume as it operates inside the channel.
If I continue to be whacked out on this I look forward to a swift 2 X 4 to the forehead
Please see the attached chart snippet. Note the area of Price inside the neon green rectangle. Also note the Volume area highlighted in yellow.
Focus on the Olive Green up Channel. See how Price travels from the Low (Point One) to the High (Red FTT Bar). The only "retrace" within this channel is the Dip (circled). As such, we have Increasing black Volume across this entire Traverse. Even though we have various Volume levels across the entire traverse (See blue arrows in Volume), we annotate our Gaussian as increasing from low to high (of Price) by drawing Increasing Black lines above the Volume Bar. We do not care if the Gausssians cut through a Volume Bar. We annotate Volume to make sure it matches how Price moves across a channel.
Focusing on the pink Down Channel, we see the Pink Channel as the Retrace of the much larger Blue Channel. We see decreasing Price within the Blue channel. As such, we annotate our Gaussian as Decreasing Red becuase it is the Non-Dominant Traverse of the Blue Channel. Now, had we been focused on the Pink Channel watching for Price to Break free of the Olive Up Channel, we would have annotated Decreasing Red (as Price approached the right trend line of the Olive Channel) to Increasing Red Volume (as Price Breaks Out of the Olive Channel and continues in the Direction of the New Dominant Trend bounded by the Pink Channel (See Pink Arrows in Volume Area). Annotating in such a fashion shows the \/-R2R Gaussian Shift (Again Pink Arrows).
One must match their Gaussians to their channels, and realize, when shifting focus from Channels to Traverses, one must shift the Gaussian focus as well.
I hope the above provides the clarity you seek.
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1500589>
Focus on the Olive Green up Channel. See how Price travels from the Low (Point One) to the High (Red FTT Bar). The only "retrace" within this channel is the Dip (circled). As such, we have Increasing black Volume across this entire Traverse. Even though we have various Volume levels across the entire traverse (See blue arrows in Volume), we annotate our Gaussian as increasing from low to high (of Price) by drawing Increasing Black lines above the Volume Bar. We do not care if the Gausssians cut through a Volume Bar. We annotate Volume to make sure it matches how Price moves across a channel.
Focusing on the pink Down Channel, we see the Pink Channel as the Retrace of the much larger Blue Channel. We see decreasing Price within the Blue channel. As such, we annotate our Gaussian as Decreasing Red becuase it is the Non-Dominant Traverse of the Blue Channel. Now, had we been focused on the Pink Channel watching for Price to Break free of the Olive Up Channel, we would have annotated Decreasing Red (as Price approached the right trend line of the Olive Channel) to Increasing Red Volume (as Price Breaks Out of the Olive Channel and continues in the Direction of the New Dominant Trend bounded by the Pink Channel (See Pink Arrows in Volume Area). Annotating in such a fashion shows the \/-R2R Gaussian Shift (Again Pink Arrows).
One must match their Gaussians to their channels, and realize, when shifting focus from Channels to Traverses, one must shift the Gaussian focus as well.
I hope the above provides the clarity you seek.
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1500589>
Quote from EstebanUno:
Palinuro,
I don't know whether it reverses against another wall or not, as a rule. I'm inclined to say yes it does. But I haven't really noticed one way or the other.
How do you decide what is a forceful test? By how long price stays at the wall?
Maybe QT will be more friendly today and you'll have some examples to post.I look forward to them.
Esteban
Esteban,
Unfortunately I had to go out in midafternoon yesterday (CET), so I missed all but the first hour of the trading day. Sometimes the time difference is very frustrating (and tiring).
I'm not sure at this point how to articulate what gives me a sense of a forceful test. Context is important (prior flaws, ftts, etc). But also how many times and how rapidly price drops back to the next B/A pair. And whether any big lots start eating away at the wall.
Anyway, I'll keep a look out today (only 7.5 hours to market open, LOL). I added flashing alerts to the Excel DOM so I see lots of walls form and disappear...
Greetings all,
I've recently began working to understand what spyder and Jack have generously shared... and think I might have started to grasp Gaussians.
This is my understanding (may or may not be correct) of Gaussians. Often I find rephrasing something helps test my understanding since it forces you to process the information in order to rephrase. I appreciate any corrections.
(1)The color of the Gaussian (red, black) is dictated by the direction of the *price* trend ?
(2)The slope of the Gaussian (rising slope, falling slope) is dictated by the direction of *volume* trend ?
(3)The slope of the Gaussian changes when there is a change in the price channel ? Or in order of cause-effect, channel changes must be reflected in Gaussian *slope* change ?
Thanks for any feedback.
I've recently began working to understand what spyder and Jack have generously shared... and think I might have started to grasp Gaussians.
This is my understanding (may or may not be correct) of Gaussians. Often I find rephrasing something helps test my understanding since it forces you to process the information in order to rephrase. I appreciate any corrections.
(1)The color of the Gaussian (red, black) is dictated by the direction of the *price* trend ?
(2)The slope of the Gaussian (rising slope, falling slope) is dictated by the direction of *volume* trend ?
(3)The slope of the Gaussian changes when there is a change in the price channel ? Or in order of cause-effect, channel changes must be reflected in Gaussian *slope* change ?
Thanks for any feedback.
Issue with IB and Excel DDE
A number of you are having trouble with the IB DOM I posted a couple of weeks ago. I started getting the same problem. It just isn't updating anymore. I contacted IB tech and they were no help. So if IB is reading this please help.
IB installs samples on your pc under director c:\jts and under the excel directory you can try their sample to see if it works. I could not get theirs to work.
If someone figures out what IB is doing please let us know.
A number of you are having trouble with the IB DOM I posted a couple of weeks ago. I started getting the same problem. It just isn't updating anymore. I contacted IB tech and they were no help. So if IB is reading this please help.
IB installs samples on your pc under director c:\jts and under the excel directory you can try their sample to see if it works. I could not get theirs to work.
If someone figures out what IB is doing please let us know.
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