Spydertrader's Jack Hershey Futures Trading Journal

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Thats definitely reassuring but I am curious why you drew it the way you did, to me, it doesnt make sense because it doesnt account for the range of the 13:05 bar. Obviously you drew it the way you did for a reason otherwise you would have made pts 1&2 on the same bar. Just a little confusing to this newbie thats all :)

Quote from Spydertrader:

Sure, but as you can see, even after making the changes, we don't 'see' the market any differently (other than perhaps having the ability to anticipate the FBO).

- Spydertrader

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1502447>
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Quote from The Swordsman:

Thats definitely reassuring but I am curious why you drew it the way you did.
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It's just the way I viewed that particular area of the chart. In other areas of the same chart, I drew in the lines the way you describe. As to why I drew it differently this time, I cannot say. I really have no idea. Maybe, my subconscious knows something the rest of my brain doesn't. Maybe, I completely missed the previous bar when I zoomed into that area of the chart. Maybe, its the whole 'sports memory' thing. I honestly couldn't tell you. I can tell you that I don't 'sit and think' of the best way to draw in channels. My eyes 'see' a channel and I add the lines - often in advance of any forming Price bars.

Now, having said that, it wasn't always this way. At some point in my own learning process (you should see the horrible channels I used to draw before Nwbprop taught me correctly in Journal I), I simply started to draw the lines in without thinking. I expect some have already made this same transition, and I believe everyone does so at their own pace.

- Spydertrader
 
Quote from Spydertrader:

It's just the way I viewed that particular area of the chart. In other areas of the same chart, I drew in the lines the way you describe. As to why I drew it differently this time, I cannot say. I really have no idea. Maybe, my subconscious knows something the rest of my brain doesn't. Maybe, I completely missed the previous bar when I zoomed into that area of the chart. Maybe, its the whole 'sports memory' thing. I honestly couldn't tell you. I can tell you that I don't 'sit and think' of the best way to draw in channels. My eyes 'see' a channel and I add the lines - often in advance of any forming Price bars.

Now, having said that, it wasn't always this way. At some point in my own learning process (you should see the horrible channels I used to draw before Nwbprop taught me correctly in Journal I), I simply started to draw the lines in without thinking. I expect some have already made this same transition, and I believe everyone does so at their own pace.

- Spydertrader
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If you look at how price travelled intra bar from the close of 13:00 through 13:05, 13:10... to the low of 13:20 you can see why the high of 13:05 is not a logical pt 2. Point 2 should be set after pt 1. Spy saw this in his subconscious.
 
Spyder, looking to confirm what I think is correct regarding odd harmonics. I have a chart annotated with them , but I switched the 2 min ym to the 3 min just to simplify the chart not to change anything that is being taught here. My real problem is identifying hvs. I think I see them many times ( too many), but I am confused as to when it is real. I see the lateral pattern set up with alternating volume and decreasing volume ,but I still am not sure how many bars do I need to confirm and how many bars they can last. I know it has been discussed before but I am having trouble grasping it.
 

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Quote from TIKITRADER:

..My real problem is identifying hvs. I think I see them many times ( too many), but I am confused as to when it is real. I see the lateral pattern set up with alternating volume and decreasing volume ,but I still am not sure how many bars do I need to confirm and how many bars they can last. I know it has been discussed before but I am having trouble grasping it.
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minimum 2 bars, since it can not be just 1 bar. And it can last as long as market wants it to be. Clue: watch for alternate color, watch decrease vol of either color.
 

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Quote from nkhoi:

minimum 2 bars, since it can not be just 1 bar. And it can last as long as market wants it to be. Clue: watch for alternate color, watch decrease vol of either color.
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In this example , could this be an hvs? does an hvs have to have same highs or lows side by side or can it be same highs and same lows very other bar or every three bars as long as it moves lateral and follows the volume pattern of alternating color and decreasing volume. this example is kind of what I am dicussing. :confused:
 

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Quote from TIKITRADER:

Spyder, looking to confirm what I think is correct regarding odd harmonics. I have a chart annotated with them , but I switched the 2 min ym to the 3 min just to simplify the chart not to change anything that is being taught here. My real problem is identifying hvs. I think I see them many times ( too many), but I am confused as to when it is real. I see the lateral pattern set up with alternating volume and decreasing volume ,but I still am not sure how many bars do I need to confirm and how many bars they can last. I know it has been discussed before but I am having trouble grasping it.
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Your harmonics look fine.

Just to clarify, you used the three minute YM to more easily post your question, and not to monitor throughout the day, correct?

The best (and easiest) way for a beginner to distinuish an HVS results from process of elimination. Once a trader has eliminated the possible, what remains, must be the answer to the question, "What do I see here?"

With flaws, everything starts with what looks like an FTT initially. Once you have determined the current formation falls outside the characteristics of an FTT (WWT? or WTF?), you then move to the determination of what kind of flaw you see. Begin by crossing off the list of possibilities the 'low hanging fruit' - if you will - CCC and Hitch. Without very low Volume, you cannot have CCC. Without very low Price Volatility, you cannot have a Hitch. This leaves you with Stall, Dip and HVS. If on the next bar, you do not see a return to increasing dominant Volume, you can cross Stall off your list - as stalls only occur over a single bar. Since we know Dips form 'bowl shape' in an Up Trend (or a 'Hat Shape' in a down trend), if we do not see such a Price Bar formation setting up (across one or more bars), then we cannot have a Dip.

All that remains (now that we have eliminated everything else) falls under the category of HVS.

Remember, not all examples of an HVS create a lateral. In addition, not all lateral channels result from an HVS. For this reason, we have to make sure we actually have a flaw first, and then we can distinguish what kind of flaw we have.

I hope you find the above information helpful.

- Spydertrader
 
Just to clarify, you used the three minute YM to more easily post your question, and not to monitor throughout the day, correct?-

SPYDER, That is correct. just was a little clearer in this example. I only use the 2 minute ym to monitor through the day. Remember, not all examples of an HVS create a lateral. - SPYDER, If you have any examples of this, I may be better to understand all of the aspects of an hvs. I do need to reinforce the process of elimination. It is an area I lack in real time. Something this month I look forward to strengthening.
 
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