Spydertrader's Jack Hershey Futures Trading Journal

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I'd probably look at that snippet this way:

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1668913>
Quote from RoughTrader:

... If you take a look at the opening 1-2-3 formation, you'll notice that pt. 1 to pt. 2 has decreasing to increasing volume, which is still ok.

But pt. 2 to pt. 3 starts with increasing volume, then decreases, then increases again, all in the same tape. ..
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Quote from cnms2:

I'd probably look at that snippet this way:

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1668913>
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Gotcha. the overall path from pt 2. to pt 3. on the fractal I'm talking about is volume decreasing. The up and down volume bars in between reflect formations happening intrabar.

By the way, how do you get those drop shadows on the lines you paint in the image?

RoughTrader
 
The way I understand it, the best fractal to trade on is the one that on your monitoring chart (es 5 min in our case) consistently shows volume increase on dominant traverses, and volume decrease on retraces. When in entry / exit mode, you trade only this fractal's dominant traverses (volume increases). When in SCT mode, you trade both traverses. To squeeze more profits (to get more efficient) you have to trade closer and closer to the turning points. Using only volume and price you can reach a certain level of efficiency, but to go beyond it you'll have to use finer tools. As you try to get closer to the turning points you get fake signals that mean more washes. Even at expert level you should avoid low volume periods where the noise overwhelms the signal.
Quote from RoughTrader:

Gotcha. the overall path from pt 2. to pt 3. on the fractal I'm talking about is volume decreasing. The up and down volume bars in between reflect formations happening intrabar.

By the way, how do you get those drop shadows on the lines you paint in the image?

RoughTrader
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It's a feature of the FastStone tools I use.
Quote from RoughTrader:

... By the way, how do you get those drop shadows on the lines you paint in the image?
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Quote from cnms2:

The way I understand it, the best fractal to trade on is the one that on your monitoring chart (es 5 min in our case) consistently shows volume increase on dominant traverses, and volume decrease on retraces. When in entry / exit mode, you trade only this fractal's dominant traverses (volume increases). When in SCT mode, you trade both traverses. To squeeze more profits (to get more efficient) you have to trade closer and closer to the turning points. Using only volume and price you can reach a certain level of efficiency, but to go beyond it you'll have to use finer tools. As you try to get closer to the turning points you get fake signals that mean more washes. Even at expert level you should avoid low volume periods where the noise overwhelms the signal.
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Bravo, very succinctly said :)
 
Quote from Spydertrader:

Your chart shows a Sym Pennant Formation. If you choose to go back and review the discussions at the time (wise advice already handed to you), note how Formations did not enter the discussion until September. Now, armed with information on Formations, you can then determine how best to use that information. As others have already advised, you might find this process easier by learning the methods themselves first. ETLurker found automating in such a fashion quite successful.

- Spydertrader
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ETLurker's automation failed. He even admits it here:
http://www.elitetrader.com/vb/showthread.php?s=&postid=678635#post678635
 
Quote from TIKITRADER:

This is a little chart I like to keep running off to the side. This is today Es 5 minute.
For the forest , it is just a reminder to stay on course.

I always annotate my main chart, but glance at this occasionally.
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How does price closing above or below the 20SMA help keep you on course?
 
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