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Spydertrader's Jack Hershey Futures Trading Journal
- Thread starter Spydertrader
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CNMS2 Questions-
Constant Volume charts -
1) What level do you set the minimim volume at?
2) Using constant Volume chart PRV monitoring is impossible
correct?
Level1, Level2, Forest, Tree, Limb, etc.
Longer Time interval TO Shorter Time Interval
For clarification purposes I understand your use of the above
terms to mean for example ( Doesn't have to be in the
below units. But the relative relationship is important ):
level 1 - weeks
level 2 - days
forest - Intrady Monitoring measure in minutes (30,15,...)
tree - forest / any number X
limb - tree / X
IF YOU monitor and trade at the forest level choose a fractal
where the chart channels appears to "Tape" ?
IMO - You have to trade at a faster channel than the one being
monitored.
CHANGE/CONTINUATION MONITORING POINTS AND POTENTIAL ENTRIES - Please see attached chart.
CHARTs from left to right - 1min .5pt inc 5 min 1pt inc 15 min
On the 5 min (Middle chart)
red arrows -I was monitoring the bar low for a short entry CHANGE SIGNAL ( NO Short Entries
at these points ).
Green arrows for long entry CONTINUATION SIGNAL.
The lime green channel was in place and I added the green
channel after the PRV and price surge of the 1130 bar.
The vertical lines on the 1 min chart corresponds to the entry arrows on the
5 min chart.
What I really like about the chart, at this time, is that we were at the 15 minute chart RTL.
Constant Volume charts -
1) What level do you set the minimim volume at?
2) Using constant Volume chart PRV monitoring is impossible
correct?
Level1, Level2, Forest, Tree, Limb, etc.
Longer Time interval TO Shorter Time Interval
For clarification purposes I understand your use of the above
terms to mean for example ( Doesn't have to be in the
below units. But the relative relationship is important ):
level 1 - weeks
level 2 - days
forest - Intrady Monitoring measure in minutes (30,15,...)
tree - forest / any number X
limb - tree / X
IF YOU monitor and trade at the forest level choose a fractal
where the chart channels appears to "Tape" ?
IMO - You have to trade at a faster channel than the one being
monitored.
CHANGE/CONTINUATION MONITORING POINTS AND POTENTIAL ENTRIES - Please see attached chart.
CHARTs from left to right - 1min .5pt inc 5 min 1pt inc 15 min
On the 5 min (Middle chart)
red arrows -I was monitoring the bar low for a short entry CHANGE SIGNAL ( NO Short Entries
at these points ).
Green arrows for long entry CONTINUATION SIGNAL.
The lime green channel was in place and I added the green
channel after the PRV and price surge of the 1130 bar.
The vertical lines on the 1 min chart corresponds to the entry arrows on the
5 min chart.
What I really like about the chart, at this time, is that we were at the 15 minute chart RTL.
Attachments
Quote from Dantheman:
For me, (aside from considering the ym during the bounce phase)...I would be taking note of the fact that the closing of the price bar should be a heck of a lot higher on that much volume.
in other words... "why would this price bar be closing so "low" on extreme volume at the LTL?"
big warning flag for me.
The much lower volume "flaw like" bar after the LTL bounce is also an indication that change has taken place IMO.
Ivo
I recognize the above and knowing that a change in sentiment has occurred is more important than attaching the correct label. But, how in Spyder's example does one identify the green and orange events as FTT's rather than LTL bounces? I don't see a noticable difference from the example in the snippet. Perhaps the YM chart was the key.Quote from pr0crast:
snip...
1) a bounce will retrace with more "gusto" than a flaw and often produces "spike" bars
2) one determines something is or is not a bounce using the same framework as with an FTT (i.e. differential analysis, eliminating possibilities as time progresses)
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1626219>
Quote from Spydertrader:
Additional Signals for Change
...
In addition, a breach of an RTL on decreasing volume also provides a signal for change. Although not directional in nature, this signal for change indicates slowing pace in the market. Slowing pace can often mean increased risk - especially when combined with Time of Day
...
This is very interesting. I have noticed indeed that when RTL breaches while volume / volatility is decreasing you can count on the channel to be widened soon. Very useful. Good moment to be out if you don't like the increased risk.
regards,
Ivo
1) usually 10k or 30k
2) correct, but you can observe the pace
I don't have definitions for those terms, but I'd use "level 1" as first level above the "tape", then "level 2", ... "forest".
At some point, Jack recommended that after entry to find the slower fractal on which you see a tape forming. Search for "tampa tape".
On your charts I see an up channel forming, and a retrace to pt 3 happening, so I'd look for a long entry. I'd need a signal that the setup changed toward short before looking for a short entry.
2) correct, but you can observe the pace
I don't have definitions for those terms, but I'd use "level 1" as first level above the "tape", then "level 2", ... "forest".
At some point, Jack recommended that after entry to find the slower fractal on which you see a tape forming. Search for "tampa tape".
On your charts I see an up channel forming, and a retrace to pt 3 happening, so I'd look for a long entry. I'd need a signal that the setup changed toward short before looking for a short entry.
Quote from 8833broc:
CNMS2 Questions- ...
One problem when entering a new area is that people tend to use short hand phrases. The problem is just then learning what concept to which the phrases refer. Change and continuation are short hand for 'Change at some resolution' vs 'Continuation at that same resolution'..."who cares if these obscure two bar snippets with no context are cont/chg?" ..
By removing the context, a single bar could be BOTH Change AND Continuation. That is, a Change could occur at a finer resolution that indicates Continuation at a more coarse resolution.
I don't believe that the problem is simply identifying Change vs Continuation, but rather if the current event means Change, it means change at what resolution?
If I've stated something that's incorrect, feel free to correct me.
- Talas
Yes. And don't forget:
Long: HH & HL
Short: LL & LH
Long: HH & HL
Short: LL & LH
Quote from 8833broc:
cnms2
Would the short CHANGE signal in this case be a B2R -> R2B Gaussian ( or if I didn't denote it properly an INC in Red PRV volume to signify a change in sentiment to SHORT) at the monitoring time interval ( which in the charts I attached was 5 minutes ) ?
Thank you !
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