Spydertrader's Jack Hershey Futures Trading Journal

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Quote from ticktrade:

I'm under the impression that both lateral movement and lateral formations will exit in the direction they entered.
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I think you may have combined two situations which may or may not work in unison. Lateral movement occurs within all sorts of formations. In the chart I posted (See above), Lateral movement occurred within a Flat Bottom Pennant (FBP) Formation. Lateral formations (CCC, some HVS situations, Lateral Channels, etc.) represent a slightly different phenomenon.

Quote from ticktrade:

I recognize most flaw and lateral patterns however what to name them isn't always clear and I'm not concerned with this, just as long as I recognize them and stay on the right side of the market.
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Again, we aren't talking about 'flaws' per se. Forget 'flaws' for now. We need to learn to differentiate between Lateral Movement (which may occur within a flaw [or may not], and often occurs within many formations - in addition to - Lateral Formations) and a formation which results in a lateral.

Again, a Pennant (FTP, FBP or SYM) often has lateral movement within it, but does not form a lateral formation.

All poodles are dogs, but not all dogs are poodles.

- Spydertrader
 
Guys, you are talking about channels as primary trading tool. Traverses, etc. Price moves inside many channels at the same time. I can suppose that almost every 5min bar can be potential FTT bar for some channel. How to know what channel is "true price operating channel" NOW? This is the most intricated part for me.
 
Quote from MoveTimer:

Guys, you are talking about channels as primary trading tool. Traverses, etc. Price moves inside many channels at the same time. I can suppose that almost every 5min bar can be potential FTT bar for some channel. How to know what channel is "true price operating channel" NOW? This is the most intricated part for me.
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Hi,

Look at the gaussians. There's high volume when the borders of the channels are touched. If you think you see the channels but you don't see the volume you got your channel wrong.

The FTT is very interesting and there are different things to consider. Price should try to touch LTL (else it's not an FTT) and fail. If this happens then it's an FTT.

However, in my opinion some more factors play a role: volume of the FTT bar compared to volume when price was around same level earlier.., volume of previous bars, etc. Did the FTT take place on high volume or on low volume, etc.

regards,
Ivo
 
Quote from MoveTimer:

Guys, you are talking about channels as primary trading tool. Traverses, etc. Price moves inside many channels at the same time. I can suppose that almost every 5min bar can be potential FTT bar for some channel. How to know what channel is "true price operating channel" NOW? This is the most intricated part for me.
More...
The open secret is here:
http://www.elitetrader.com/vb/showthread.php?threadid=83604


If you have not read these "secret" documents, Ivob's reply above probably do not make much sense to you.
 
Quote from Tums:

The open secret is here:
http://www.elitetrader.com/vb/showthread.php?threadid=83604

If you have not read these "secret" documents, Ivob's reply above probably do not make much sense to you.
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I want to add that I am far from complete in my reply regarding FTT's. There are more factors to consider and usually it's not one factor but a combination. (consider the complete dataset , not just one element). There are different kind of FTT's and recognizing them quickly and acting quickly is crucial for this method. Just as important is recognizing quickly the FTT was a flaw.. So we need to know what to expect right after the FTT so we also know it when something unexpected shows up. We need decreasing non dominant volume, or a flaw in the new dom direction is nice as well. This is followed by FBO or BO and then incr. dominant volume. BTW There are also things to expect before the FTT. (flaw(s) and/or VE).

So not every 5 min bar can be a FTT :-)

It happens all the time when I think :"Mmm. if this would be a valid FTT we would not see this right now". This happens even before price moves against you so in general it's a volume issue or something on the finer tools. Like this one can quicky exit with a profit or reverse and wait for the next FTT.

If you are wrong the market will at least temporarily try to make you think that you were right.. So if you were quick to enter and quick to recognize this you can exit with a profit.

Some months ago I was just thinking. FTT is failure to traverse to LTL. That is true for sure but there's so much more to know then "enter and wait". If you simply enter on every FTT (at end of bar for instance) you get killed if you don't know what to expect after it.

regards,
Ivo
 
This is just a followup, to something regarding tick I posted recently.

Bundlemaker, Hope this clarifies what I posted , and the pm.

The 2 pair here , I don't think is what JH had in mind, but it is a 2 pair to a b/o.

Spyder, if this is incorrect as how I should look at 2 pair,
please correct me, when you return is fine.
 

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Quote from TIKITRADER:

This is just a followup, to something regarding tick I posted recently.

Bundlemaker, Hope this clarifies what I posted , and the pm.

The 2 pair here , I don't think is what JH had in mind, but it is a 2 pair to a b/o.

Spyder, if this is incorrect as how I should look at 2 pair,
please correct me, when you return is fine.
More...





Typo, * retrace in down channel
in post above , reference to left side label.
Half asleep when I type.
 
I use DOM tool as Spyder described it here, though trade a differentl method. Yesterday was a difficult day, too much chop. However using DOM where price bounces off wall, helped me tremendously. I rarely look at ES market, and it felt very good to be able to recognize some of turning points.
 
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