Spydertrader's Jack Hershey Futures Trading Journal

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Something I must not be understanding about channels, because I though we draw them in when we have the first 3 points that appear to create a legitimate channel?

To me this would mean 12:25 as point 1, 12:30 becomes pt 2 and 12:40 as the point 3. Each of these price points has price moving down, and then 12:45 becomes the FTT and subsequent BO on increasing volume. Visually we have 3 points that end in an FTT and BO. So in my mind, this channel is dead and now we move to the up channel.

How come you didnt draw your channel this way? I'm trying to make sense of this situation, for some reason it escapes me.

So if we have a FBP, can we not have a pt 3 from that price point, does price have to move at least one tick lower?

Quote from Spydertrader:

See attached.

- Spydertrader

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1612944>
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Quote from New Amsterdam:

To me this would mean 12:20 as point 1, 12:30 becomes pt 2 and 12:40 as the point 3. Each of these price points has price moving down, and then 12:45 becomes the FTT and subsequent BO on increasing volume.
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Without a chart to actually 'see' your thought process in action, this exercise becomes difficult at best.

It appears as if you are suggesting the 12:20 (black bar) on my chart needs to be a Point One, which would then take your right trend line through the 12:25 (long red) bar. Perhaps you could use a screen capture program (Snagit) or the Print Screen function in an effort to help us help you.

However, if I read your question correctly, I think you may have drawn in a channel which fails to show any change in direction within it. Such channels, normally are called tapes. But again, without a chart, I cannot know if I understand you correctly. If I do understand you correctly, then you've made the common error of 'jumping fractals' and used 'tapes' instead of channels for your decision-making.

Make sure the channel you have drawn in has at least a directional change (down to sideways or down to up) within it.

- Spydertrader
 
Sorry, edited my post after you quoted it, yes I meant 12:25 as pt one. My mistake.

I will be more careful drawing my channels, I thought I had 3 pts but I must have had a tape.

Thanks.

Quote from Spydertrader:

Without a chart to actually 'see' your thought process in action, this exercise becomes difficult at best.

It appears as if you are suggesting the 12:20 (black bar) on my chart needs to be a Point One, which would then take your right trend line through the 12:25 (long red) bar. Perhaps you could use a screen capture program (Snagit) or the Print Screen function in an effort to help us help you.

However, if I read your question correctly, I think you may have drawn in a channel which fails to show any change in direction within it. Such channels, normally are called tapes. But again, without a chart, I cannot know if I understand you correctly. If I do understand you correctly, then you've made the common error of 'jumping fractals' and used 'tapes' instead of channels for your decision-making.

Make sure the channel you have drawn in has at least a directional change (down to sideways or down to up) within it.

- Spydertrader
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To deal with the volatility variations during the day, I keep an eye on a constant volume chart. This is not part of Hershey orthodoxy ... :) But it works for me ...

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1613060>
Quote from Failure2Travers:

... Here is my current issue. I notice that at one point this morning, I could draw 3 possible FOREST level down channels confirmed by gaussians. I could also, at the SAME point in time, draw 2 up channels at a forest level as well. ... How do I know which channel is the most valid forest level channel?
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Quote from Pr0crast:

A beautiful little sequence...

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1613042">
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Indeed. It also bounced off the 20MA like a glove.
 
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