Spydertrader's Jack Hershey Futures Trading Journal

[cnms2]

It doesn't sound like a good idea. Not any colinear points form a trend. Not any parallels drawn through 3 points form a channel. You have to define a channel that contains and projects the price action.

Jack advises against being too creative when learning, especially in the beginning. It may hinder your learning.

Quote from RoughTrader:

Here is my chart for the day. I've changed the way I chart adjusted pt3 channels.

When an up-channel RTL is broken, but price then retraces back to at least the top of the highest tape in the channel (so that no downward 1-2-3 is formed), I break the existing channels and start a new channel from the lowest point of the RTL violation. The old and new channels are then wrapped in a higher-resolution channel (peach colored in my chart) to keep track of the downshift in pace.

My description isn't clear, but the chart should clarify. Same goes for down-pt.3 channels as well.

I had a hard time reading the high-volatility bars that were jammed together in a stall just before the final upthrust of the day. I guess the only way to mark that is with CCC notation.

RT

 

[cnms2]

An RTL fan-out happens on low volume. Don't forget: pt1 to pt2 on volume increase, pt2 to pt3 on volume decrease. An increase in volume at RTL is probably a pt2 of a reversal.

Quote from The Swordsman:

Spydertrader, what do you make of the 15:00 bar today? For me, it was a real tough call. The previous bar certainly broke out on increased blk volume. But the 15:00 goes higher initially and then shoots down and closes basically on the RTL of the down channel. It didnt close back in the channel but it closed on that RTL.
I had a hard time deciding what kind of volume this bar showed. Looking at the breakdown on the 1 min chart, the volume of the 15:00 bar shows the volume is predominently red volume. So I took this to mean I need to fan out my prior down channel as I determined this to be an FBO. I shorted into the 15:05 bar one tick off the high and made a nice trade (like 3 pts) but I did notice a lateral forming and I started to think that maybe I shouldnt be fanning out my down channel. That perhaps the 15:00 was indeed a real BO and not an FBO. So I missed the up move at the end of the day as I wasnt sure if what I was seeing was indeed correct. This happens sometimes when I get an unclear BO of a prior trend.

Any comments on this scenario that you think would be helpful? Thank you.

 

[ericta]

from spyder


3. Review your information from Str-Squ (scroll back) to see if any signals developed during the time frame in question, and more importantly, did those signals develop when the ES or YM sat at their extremes. What information did the STR-SQU signal provide? What action would one needed to have taken based on those signals?

Should I exit/reverse when SS indicates change in my trading resolution? or do I wait for the bar close?

5. Review the OTR chart in an effort to 'see' what clues materialized with respect to the 2-pair paradigm. Did you see translation after a 2 pair spike? Did you 'see' the increased time spent on the dominant side after the two pair switched dominance? How did the Gaussians on the OTR clue you in to a change in sentiment?

I thought we just need to focus and act on the moment of spike! clearly I'm missing the bigger picture here.

Thank you.

 

[Spydertrader]

Quote from ericta:

Should I exit/reverse when SS indicates change in my trading resolution? or do I wait for the bar close?

You immediately take action upon receiving a signal from Str-Squ as long as that signal remains part of a sufficient data set, and not, a single data element. Remember, once one chooses to go intra-bar, one must continue to monitor intra-bar to insure one sees all the dominos fall which need to fall.

Quote from ericta:

I thought we just need to focus and act on the moment of spike! clearly I'm missing the bigger picture here.

I wrote my post from the standpoint of someone looking to 'see' what they may have missed, and as such, I provided places for people caught in that loop to go and focus as possible sources of error. If you do not make such errors, then by all means, continue to focus on what works. Again, the dominos all need to fall at whatever resolution one trades, or whatever level of tool one uses.

The above clarification assumes one uses the 'finer' tools to "carve the turns" while trading, and does not uses the 'finer tools' in an attempt to become profitable.

Good Trading to you.

- Spydertrader

 

[Spydertrader]

Quote from RoughTrader:

Here is my chart for the day.

Where you have marked CCC on your chart, Lateral Formations exist.

- Spydertrader

 

[cnms2]

Is this an annotation error, or I misread it?

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1682479>

Quote from Spydertrader:

11-16-2007 ES Chart

- Spydertrader

 

[Spydertrader]

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1682500>

Good. It isn't a Point Two. For some reason, I inadvertantly dropped a #2 in the incorrect spot - during a copy and paste.

Follow the Green arrow to the location where the Point Two should have been labelled (where the left trend line [green] begins). Where I begin my left trend line is always a Point Two (in case for whatever reason) I don't copy and paste correctly again - in the future.

See attached.

- Spydertrader

 

[cnms2]

Thanks

Quote from Spydertrader:

... Where I begin my left trend line is always a Point Two (in case for whatever reason) I don't copy and paste correctly again - in the future.

See attached.

- Spydertrader

 

[Tums]

Quote from gooch87:

here is my chicken scratch

This chicken scratch is a piece of art.
Just do a review and count the profit possibilities... its worth more than a Picaso.

 

[cnms2]

This is an old chart, corrected by Jack, showing that the RTL of a valid channel, if extended backwards happens to pass through a previous price swing point (originally annotated as pt1), but it hasn't started there. Consequently its original pt2 was incorrect too. This may have not made a big difference for this chart, but learning to draw channels correctly is very important.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=551357>