Spydertrader's Jack Hershey Futures Trading Journal

[Jander]

Quote from river:

The Gaussian I drew had increasing red volume from the open until 10:25 and then decreasing red volume until 11:10 when I stopped. At that point, based on my Gaussian I was monitoring for “change”.

Any comments on my chart annotation would be appreciated!

-river

River..

It looks like you are picking this up rather quickly. One point to remember is that increasing red is rarely followed by decreasing red. I can see why you annotated it that way, but go back through Spy's charts and you will rarely see an increasing color followed by a decreasing gauss of the same color.

Gaussians can typically be different for different folks depending on your channels, but for the forest I think you should have decreasing black from 10:10-10:45, followed by increasing red from 10:45-11:00. I may be jumping fractals, another view could put you at increasing red from 9:30-11:05. Remember they are not an exact science. Hope that helps...

 

[R/R]

Quote from guavaman:

Is there an explanation of what this is?

guava: study this sketch at the link below and you can see how the dominant pair transitions from the lower level at the left red arrow to the higher level as you move forward. Note the dwelling on the lower pair on the left side and how price starts to stick more and more on the upper pair as you move right.

BUT, it beats me how one would see this on the Quote Tracker range charts that don't show how long price cycles within one pair versus the other. I guess you make the judgement from the volume bars. Note I don't use QT so I haven't worked with its type of range charts. All I've seen are the couple of charts posted here.
http://www.elitetrader.com/vb/attachment.php?s=&postid=1551602

 

[river]

Quote from Jander:

Gaussians can typically be different for different folks depending on your channels, but for the forest I think you should have decreasing black from 10:10-10:45, followed by increasing red from 10:45-11:00. I may be jumping fractals, another view could put you at increasing red from 9:30-11:05. Remember they are not an exact science. Hope that helps... [/B]

Thanks Jander--that helps! Your gaussians seem to fit better, and make more sense, than my increasing red to decreasing red.

-river

 

[PointOne]

Quote from R/R:

BUT, it beats me how one would see this on the Quote Tracker range charts that don't show how long price cycles within one pair versus the other. I guess you make the judgement from the volume bars. Note I don't use QT so I haven't worked with its type of range charts.

This is a fairly important question. I suspect IB datafeed is "good enough" but I'd like to see what I am missing.

The DOM section of the syllabus passed without much good discussion. Let's not let the tick chart part similarly fade.

Those who have learned and benefited from this Journal owe it to Spyder and Jack to contribute their knowledge to those who are further back on the learning curve. I've read comments on other threads that people have taken all they need from here and are now no longer sharing. Shame.

 

[callmate]

Quote from PointOne:

Let's not let the tick chart part similarly fade.

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I agree we need more discussion on tick charts, I am terribly confused with 2 pair and a spike concept. If you " get it" please do share.

 

[Spydertrader]

Quote from R/R:

BUT, it beats me how one would see this on the Quote Tracker range charts that don't show how long price cycles within one pair versus the other.

You could see residence as a function of time by combining the Tic charts with the DOM. Noting how long a certain Bid / Ask Pair cycles on the DOM when compared to another pair can provide the answers you seek.

- Spydertrader

 

[nkhoi]

Quote from PointOne:

..The DOM section of the syllabus passed without much good discussion. Let's not let the tick chart part similarly fade.

Those who have learned and benefited from this Journal owe it to Spyder and Jack to contribute their knowledge to those who are further back on the learning curve. I've read comments on other threads that people have taken all they need from here and are now no longer sharing. Shame.

actually the real reason for not much discussion about fine tools because they had been discussed in depth by Jack before. On ET not much is know about channel and gau but many prop traders know about T&S, tick chart and DOM, just search on 2 pairs, for exmp:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=35915&perpage=6&pagenumber=87

http://www.elitetrader.com/vb/showthread.php?s=&threadid=30568&perpage=6&pagenumber=9

 

[bundlemaker]

Quote from R/R:


BUT, it beats me how one would see this on the Quote Tracker range charts that don't show how long price cycles within one pair versus the other. I guess you make the judgement from the volume bars. Note I don't use QT so I haven't worked with its type of range charts. All I've seen are the couple of charts posted here.
http://www.elitetrader.com/vb/attachment.php?s=&postid=1551602

I was about to post something on this very thing. R/R, the answer is twofold: a) you can't b) some of us are looking at the wrong chart.

Please follow me on this. When I left Tucson, it was my understanding that what we are supposed to be viewing is a "range chart" with the setting at 1 tick of range width. After your post it dawned on me that this can not be correct. I'm not sure if it's a matter of different people calling the charts by different names, but look at Nkhoi's charts. See how they look just like the hand drawn image from Jack. Nk's chart is a true tick chart, set to one tick. I ( and I think you and others) have been using a range chart. 2pairs will be almost impossible to detect on a range chart.

Either the above is correct, or something else is causing us not to be all on the same page.

Now, ideally, what you'd want is a 1 tick chart that only paints ticks when price changes. I think some platforms let you do this. This is really what that hand drawn image is.

 

[bundlemaker]

Spdyer, please look at the image of the hand drawn thingy from Jack. Note how that chart shows price bouncing back and forth between two price levels (eg. 1250.25 and 1250.50), a single tick apart.

It is impossible for a range chart to show this, because on a range chart, a new bar will not appear until you break out of the 2 tick range.

 

[nkhoi]

I don't remember Jack ever mentioned 'range' chart but I may be wrong.
ps. I set my tick chart scale range to .25