Spydertrader's Jack Hershey Futures Trading Journal

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Wanted to add a couple more examples to my previous post to gauvaman, but was too slow for the edit feature to allow, so ...

After thinking a bit more about harmonics, thought I'd mention a couple other points seen on today's chart. When considering odd harmonics, the other main type previously noted would be the spike reversal. I believe the 12:25 bar would serve as a good example of that situation. Spyder mentioned that he would discuss that setup later - is it enough later, yet, Spy :) ? Also, notice how we had another turning point marked w/ the odd harmonic @ the 14:50-14:55 bars. Pretty cool how both ends of that price move were signaled.

Another of Spyder's statements that bears repeating here was that often times one will find a traverse 'leg' formed by the following sequence: trend ...flaw... trend ... flaw ... end effect. Looking at the time period from 14:05-14:55, we can see trend, stall, trend, dip, odd harmonic. Often times we see this 5 wave ( using this CO term very loosely) movement intraday. Not a hard and fast rule by any means. but worth keeping in mind ...
 
Quote from TIKITRADER:

If you have the video for those minutes, look to see if wall returned at these times, and what took place at 11:50.
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The wall did not return as price passed through 68.75

On close observation I am surprised to see orders filling on the T&S that are numerically greater than the quantities on the BBid/BAsk so I can only conclude that the orders are being filled faster than the digits can appear on the DOM.

When walls are frequently created and removed quickly "away from the market", are those responsible trying to create the illusion of support/resistance? One would have to be very quick to notice :)

Following the volatility expansion at 11:15 and 11;20, I anticipated an ftt at 11:25:37 @ 69.25. This was followed by decreasing red vol on bars 11:25 and 11:30, but then the ftt morphed into a dip on the 11:38 ym bar. At 11:41:19 we had what appeared to be another ftt at 69.50 but a 2k wall appeared 11:41:37 @ 69.25, price ticked up and the walled was pulled at 11:41:56. At 11:49:47 a 2.4k wall appears at 70, 1 tick below the bid, but this is pulled at 11:50:09 and price begins its run south. Decreasing red vol on the 11:50 bar confirms the ftt and we have r2r on ym. r2r on es appears at 12:00.
 

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Quote from dkm:

When walls are frequently created and removed quickly "away from the market", are those responsible trying to create the illusion of support/resistance? One would have to be very quick to notice :)
More...


For taking the time out to review the video and answer questions , thank you.

In some screenshots posted days ago, Highlighted were price tiers on the DOM, with walls present, and the bars that corresponded to those price levels of the wall.
They showed how the wall appeared to give resistance or support, to the current price.

As far as illusions. . . :eek:
 
Quote from mephistoII:

Either you are a bit confused here, guavaman, or else I am (no doubt those two possibilities are a toss-up ... heheh). I'm thinking that the double top seen @ 15:20 - 15:25 represents an odd harmonic situation, in which case it is also suggesting reversal.

An example of an even harmonic could be a 4 bar lateral. As Spyder suggested before, one can think of that scenario as two pairs of double tops (or bottoms) and that two odds equals an EVEN, which would be indicative of continuation.

Hope I'm not spewing erroneous info :)
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My data shows the two bars having equal tops and bottoms which forms an even harmonic. (see link below from post by bi9foot 0n 6/13/07). Of course your chart could be different.

http://www.elitetrader.com/vb/attachment.php?s=&postid=1499387
 
This is screenshot of this morning premarket.
There are 2 panes , side by side. Time is 9:10 and on

On the left side, there is a wall at 1479 and holding as resistance for 3 bars. The DOM is highlighted at the wall, and the corresponding price level at the bars is annotated to show the relationship.
Lack of minority in this case?

On right pane , the highs of 4 bars have been held with resistance at 1479 , price starts to continue lower , and pulls away from wall.

Personally, I look at the wall on DOM , then match the price at the bars to see if it is support or resistance, it helps in my awareness.

Have a great long weekend !
( on oec, bars are 1 color, volume is one color, thats why 2 color candles are chosen)
 

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Quote from R/R:

My data shows the two bars having equal tops and bottoms which forms an even harmonic. (see link below from post by bi9foot 0n 6/13/07). Of course your chart could be different.

http://www.elitetrader.com/vb/attachment.php?s=&postid=1499387
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It was my understanding that double tops and bottoms (meaning two consecutive bars) were representative of a square wave odd harmonic. Unfortunately I could not locate Spyder's detailed post (where is nkhoi when you need him :D ?) in which he included diagrams for both odd and even, but the attached link might help with this confusing concept:

http://www.elitetrader.com/vb/showt...hlight=Even+and+odd+and+harmonics#post1496177

One can find more discussions about harmonics in this same general time period as the above post (June 8,9,10 ...)
 
Quote from mephistoII:

It was my understanding that double tops and bottoms were representative of a square wave odd harmonic. Unfortunaltely I could not locate Spyder's detailed post (where is nkhoi when you need him :D ?) in which he included diagrams for both odd and even, but the attached link might help with this confusing concept:

http://www.elitetrader.com/vb/showt...hlight=Even+and+odd+and+harmonics#post1496177

One can find more discussions about harmonics in this same general time period as the above post (June 8,9,10 ...)
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Double tops and double bottoms are indeed odd harmonics and signal change unless the bars are flaw bars.

However TWO conditions have to to satisfied for the bars to be considered Double Tops (DT) or Double Bottoms (DB).
1) The bars have to be a DB or DT during the formation of bars AND
2) The bars have to be a DB or DT after the bar is finished.

In this case the bars CANNOT be a Double Top because the 15:25 bar did not finish as a DT (it had a DB as well). Both bars had equal highs and lows meaning even harmonic - a continuation signal.

One would have gone short when the DT formed and reversed back long when the DB formed in the same bar.

Just for confirmation. Here is a posting I made a while back (which R/R referred to)
http://www.elitetrader.com/vb/showthread.php?s=&postid=1499387#post1499387

And Spyder's comments in chat the next day on how the sequence shows continuation.

Spydertrader (Jun 13, 2007 9:24:04 AM)
The screenshot bi9foot posted shows very nicely the sequences which led to continuation, rather than, change yesterday at 13:35 / 13:40
 
Quote from bi9foot:

Double tops and double bottoms are indeed odd harmonics and signal change unless the bars are flaw bars.

However TWO conditions have to to satisfied for the bars to be considered Double Tops (DT) or Double Bottoms (DB).
1) The bars have to be a DB or DT during the formation of bars AND
2) The bars have to be a DB or DT after the bar is finished.

In this case the bars CANNOT be a Double Top because the 15:25 bar did not finish as a DT (it had a DB as well). Both bars had equal highs and lows meaning even harmonic - a continuation signal.

One would have gone short when the DT formed and reversed back long when the DB formed in the same bar.
More...

Thank you, guys, for clearing up my misunderstanding. I certainly missed the distinction when two bars have both equal tops and bottoms. I learn something new everday :)

Have a nice holiday weekend!
 
08-31-2007 ES Chart

Please note the yellow outlined areas marked in the Price pane. Note also, the Volume changes which occur within these 'zones' as well. Understanding the 'formations' which occur within channels (a subset of which, we define as 'flaws') should assist everyone's understanding of the next discussion on the syllabus.

With respect to the 'finer tools' discussion currently underway, I do not wwant to squelch the iterative refinement process. We can continue the discussion at the same time (and even into the next month if need be), but for now, set aside the 'finer tools' and focus on the next point in the syllabus.

After everyone has a firm grasp of this month's topic, it will then be time to bring the 'expert level' tools to bear - especially when we discuss the October Topic: Additional Signals for change.

- Spydertrader
 

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