Spydertrader's Jack Hershey Futures Trading Journal

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Quote from cnms2:

We have to always judge the volume on the right fractal. Probably you and I talk about different fractals here.

In your example, the point in discussion looks like an FTT (a higher relative volume on its fractal) in a down channel, which is a pt 3 or other RTL FBO in an up channel on a slower fractal (a lower relative volume on its fractal) ... (?)

The slower fractal sentiment, expressed through volume, refers to a larger group of traders, hence its effect is more visible.
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Sorry I don't get this. (higher relative volume on its fractal) and I am curious what you mean.

When I talk about FTT's taking place on lower volume then I mean the fractal in which you consider the FTT an FTT. I am talking about the fractal we follow at that moment.

What i mean is on whatever fractal we are currently monitoring decreasing volume as price is moving in it's dominant direction is a sign of change.

regards,
Ivo
 
Not only is this true (Dkm post) but sometimes you even have to split the volume intrabar where the potential pt 3 is. Like the first 2 mins you saw price heading lower on decreasing red volume and then the last 3 mins you saw price increase on inc black vol. Now, the overall bar may not have very great vol as compared to the previous 5 min bar, however the turn of events intrabar says a lot.

IOW, we do have increase blk vol at the point 3 in this case, it just happens intrabar.

Quote from dkm:

There will always be increasing volume, in the dominant direction, as price moves away from a pt3. It may not be on the pt 3 bar, but it will appear.
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What you see is a superposition of the effect of several fractals' volumes. Try to filter from what you see pictures like the one before, with different volume magnitudes for different fractals. Slower fractals have bigger volume. Dominant traverses have increasing volume, while retraces have decreasing volume.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1611123>
Quote from ivob:

Sorry I don't get this. (higher relative volume on its fractal) and I am curious what you mean. ...
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When looking at a certain volume sequence (R2R, B2B), if there is an opposite color volume bar, how do we see through the bar as increasing or decreasing? For example, if I see decreasing black volume in a B2B with 2 red bars mixed into the decreasing B2B sequence, does this mean anything significant? Are they just flaws in the volume, just as we see flaws in price?
 
Quote from Tums:

when a bar made a Hi/Lo and then retreat, I see the Gaussian with the volume bar split, having a portion of it as Red, and a portion of it as Black.

The market is in fluid motion; it does not know we use a rigid 5 min chart.

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1610444">
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I see it this way too... The clincher there is the "SPIKE" of that bar. If we think about this, and I do alot of this, there is a sequence. Jack goes on ad naseum about sequences, oh dear, my head hurts. HOWEVER, accepting that there are sequences keeps only the essential elements to focus on at all times. For example, if you are near a RTL, you have the BO/FBO characteristics dominating your sweep. This way, a FLAW is something that is contrary to the dominant mode (BO or FBO). If the TRAVERSE is under way, I am specifically sweeping for 2 flaws, the FTT and for INCREASING V AGAINST THE TRAVERSE. Why these 2 FLAWS, because they are the money closers saying that the money making period has ended for the current direction and begun in a new direction. This is part of what I mean by BO being very different than FBO. FOR ME, a BO is CONTINUATION having caught the FTT. If I didn't, it is a CHANGE signal as is an FBO.

In your picture, I see the "SPIKE" which is after a 2 pair and after running into the wall. I see the intrabar black because I also see the "SPIKE". But that's just me. Again, even if I am upside down, I use my RTL BEFORE THE FACT, not AFTER the fact as some folks seam to have. What I mean is the point of having the right side of the screen blank is so that you extend your trendlines BEFORE the new bar is in place. This is what gives context to whats happening now. SOmeone, a day or two or go posted 2 charts where the annotations were more than 45 MINS behind the current action....

MAK
 
Quote from ivob:

Hi Mak,

Thanks for the answer.

What exactly is XO? and "clearing" of RTL?

I suppose XO = RTL being crossed and clearing is Breakout?

What do you recommend for a beginner?

I noticed that almost always after an FTT and decr. non dominant volume price will at least try to break RTL. There are not many FBO's without price even trying to break RTL.

It's the flaws that do not even try to break RTL because price never gets there.

So considering this I think it would be wise to just exit at RTL being a beginner. Then wait what happens and possibly re-enter at VDU after BO.

regards,
Ivo
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XO = CROSSOVER
CLEARING = No part of the BAR touches the RTL (this is an anti-whipsaw preventive measure for moi)

PERSONALLY, were I a beginner, I would only trade TRAVERSES (dominant). However, if I were BM, I would only trade SINGLE extreme VOLUME 5M bars. How do I know the current bar is EXTREME, because my PRV (noiseless works slightly better) is redlined EXTREME. Why EXTREME bars? Because there is nothing to think about. The volume in EXTREME bars is so heavy that it is easy to differentiate which side of the action is surging. STR, is STRECHED!, SQU is SQUEEZED. In other words, the signal to noise ratio of all indicators are EXTREME (ie. very loud and clear signals, nearly FLAWLESS). Unfortunately, it's not discussed anywhere as to the why's but all the pieces are here and the reasons why are understandable considering questions like, which are the most profitable bars, and what's the signal to noise like. It can be done with as few pieces as PRV, STR/SQU, and P... But then again, that's just me. Unfortunately, if one can't make sense of the hows and why, then it's all nonsense and one won't be able to accept that the dataset is sufficient...

MAK
 
Attached is an example of the question I asked earlier this morning. If we do see through these as "flaws" in the volume, similar to price flaws, why is that? Thanks for any help you can offer.
 

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Hello Mak,

Quote from makosgu:


..
PERSONALLY, were I a beginner, I would only trade TRAVERSES (dominant).
..
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And then entering on point 3?

regards,
Ivo
 
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