Spydertrader's Jack Hershey Futures Trading Journal

[RoughTrader]

sample3.gif

 

[ehorn]

Quote from Spydertrader:

November - Putting it all Together ...

- Spydertrader

Pure Gold!

 

[RoughTrader]

Quote from Spydertrader:

November - Putting it all Together Continued

Analysis

Incorrect Monitoring will lead to improper analysis as surely as the sun rising tomorrow morning. As a result, we want to always make sure, not only monitoring, but also, analysis, occurs on the correct resolution level. [/i]

I find great difficulty with maintaining a single resolution level in trading. Take the following example:

The first move of the day is a single, very long and tall tape moving upward. A tape in the opposite direction follows, also long and tall in nature. The result is a wide pt. 3 channel with positive slope (uptrending). The third traverse, as we expect, is a dominant upward traverse, but it is not a tape. It is a combination of +tape, followed by a hook (-tape), followed by another +tape. Or it could be a +tape, followed by a stall, followed by another +tape. In any case, this third "traverse" is itself a pt. 3 channel, nested inside our larger channel already created.

Today's trading already provides several examples of this type of occurrence (see attached). Let's say we only want to trade the forest level, SCT style. From the get-go, we trade the first traverse up, the second traverse down. But on the third traverse, to maintain the same resolution of trading, we'd have hold through the hook/stall embedded in the progression of the traverse.

Sometimes it's very difficult to keep track because if we create pt.3 channels exclusively from tapes, channels form nested in channels, which form even more nested channels. I guess it's just practice that's needed to keep the resolutions organized and separated.

RT

 

[cnms2]

Fractals ...

Quote from RoughTrader:

... Any thoughts, comments on what you guys do about these tape pace changes?

RT

 

[nkhoi]

Quote from Spydertrader:

November - Putting it all Together Continued

Action
...
The Journal is set up for review multiple times. Each pass, something which once made little sense, or appeared to come across with one meaning may appear different another time through. Why? The context has changed, and as I always say, when the context changes the answer changes. This time the change in context resulted from a change in the trader. As a result, the trader sees things differently than before, and hopefully, this difference results in an ‘Aha!!’ or two along the way...
Good trading to you all.

- Spydertrader

re-read the journal and find your next aha.

 

[TIKITRADER]

Quote from RoughTrader:



This enables me to catch the earliest shift from traverse to traverse. If the tape had bee successively widened, then the tape violation could occur well into the next traverse.

Any thoughts, comments on what you guys do about these tape pace changes?

RT

This is just how I see it when I tape or do channels.
I make it tight to see the change in price and volume, as early as possible.

 

[RoughTrader]

Quote from TIKITRADER:

This is just how I see it when I tape or do channels.
I make it tight to see the change in price and volume, as early as possible.

Yep, that's what I do too. It's calculus 101. Place the tape around the bars that give the steepest slope (highest derivative value) to catch stalls or opposing tapes sooner.

RT

 

[cnms2]

The fractal I want to trade on is the one on which dominant traverses increase in volume, and retraces decrease in volume. I believe that this is the best fractal for a given chart resolution. Sometimes this trading fractal fits perfectly with the 5 min chart, sometimes it doesn't and steeper or longer retraces look like new channels on my trading fractal. When this happens I usually ... overtrade.

Quote from RoughTrader:

... Sometimes it's very difficult to keep track because if we create pt.3 channels exclusively from tapes, channels form nested in channels, which form even more nested channels. I guess it's just practice that's needed to keep the resolutions organized and separated.

RT

 

[cnms2]

I like it :

Quote from Spydertrader:

... You’ll actually begin to ‘see’ the change forming before you note the FTT. ...

 

[Tums]

Quote from cnms2:

The fractal I want to trade on is the one on which dominant traverses increase in volume, and retraces decrease in volume. I believe that this is the best fractal for a given chart resolution. Sometimes this trading fractal fits perfectly with the 5 min chart, sometimes it doesn't and steeper or longer retraces look like new channels on my trading fractal. When this happens I usually ... overtrade.

that's why the 2m YM comes in so handy.

put the 20ma on both the 5m ES and 2m YM, and observe their interaction...