Spydertrader's Jack Hershey Futures Trading Journal

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Quote from Spydertrader:

November - Putting it all Together
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Haha I see 'family time' is a euphemism for writing your nuts off where you come from :D Great intro for the month.
 
Quote from Tums:

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...
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I still don't see the purpose of the 20ma... If someone could give a hint what to look for?
 
Quote from innersky:

I still don't see the purpose of the 20ma... If someone could give a hint what to look for?
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Do a search on "Spydertrader" and 20 MA or 20 SMA. Throughout the journal Spyder has made LOTS of explanations, references and examples on the utilities of 20ma.



(if you are deep in the trenches and found yourself disoriented, this might be the missing bit in your map.)
 
By widen the tape I guess you mean put on volatility expansion lines? I do this (I think this is the the preferred method). However I also 'fan' lines with a steeper slope, I do this quite freely when pace increases. As you say a stall can give yet another set of lines that is between the steep and shallow.

If this senario is a RTL BO (often the case) the shallow set (that has been expanded) is often a good guide for the main channel until you get a PT3. I keep them and often they just need a little nudge to make them the new main channel. In any case the expanded tape is now more like a channel.

If my understanding is correct tapes should be quite 'tight' containers interacting with a good portion of bars H's & L's.

I have clean ups once pace has settled down (some people leave everything on I understand) and delete anything that no longer 'makes sense'. (i.e. is unlikely to interact with or 'guide' price or where price is better described by a subsequent line).


Anyway that's how I actually go about the process itself. I should point out that I have drawn channels for years and later integrated Jacks stuff. Be warned I may have some 'bad habits' compared to the 'orthodox method'! I don't think so (except perhaps taking some things for granted).

(hehe I wonder if Jack would get a kick out of his methodology been referred to as the orthodox method?)

I think probably the most important think is that you go about the process absolutely consistantly. Having gone about things programatically you must have considered the process in some depth!

Cheers.


Quote from RoughTrader:

This is an issue I've been dealing with on the charts.
sample2.gif shows price in a trend with a very angular retracement. This type of price action is very ideal because, alongside the gaussians, the geometry is very easy to tape because of the clear cusps at the tape changes.

sample1.gif shows a similar kind of trend, but the retracement is very sinusoidal in nature. The up to down tape transition happens on light pace, but the pace quickens (slope steepens) to a maximum at the center of the retrace. The pace slows again as the price progresses back into the dominant traverse.

The initial tape lines of sample1.gif are drawn. We can see how the pace increase in the retrace causes the bars to gap away from the RTL of the tape. Obviously, this is because the tape is drawn from the first two bars of the retrace that have the lightest slope.

One solution is to keep widening the tape until the RTL is broken. My approach however, is to observe each incoming bar. If the pace quickens with that bar, I rotate the RTL (in this case clockwise) so that the tape has the deepest slope (sample3.gif). If the following violates the RTL, I keep the tape in place and wait for a stall or a tape in the opposite direction.

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
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Quote from RoughTrader:

It's pretty whippy and volume is not telling the story properly it seems....

RT
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Not to get too preachy here, but DU Volume tells a story all itself :)
 
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