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Spydertrader's Jack Hershey Futures Trading Journal
- Thread starter Spydertrader
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Quote from bi9foot:
One thing that caught my eye on the daily chart is today's volume in your chart.
Hi bi9foot,
Your data is correct. I see now that the vendor I am using has now corrected that volume spike and it now matches yours.
First time that I have seen anything like that, although I get a feeling it will not be the last. Thanks for the feedback.
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Spyder,
While doing a review of material from the summer I had a question that came up and I hope you can clarify it for me.
When we covered flaws we looked at identifying what kind of flaws we were dealing with ASAP (ccc, dip, stall, hvs etc). Some of these flaws occur in what we now identify as formations.
My question is in regards to how you handle them when this situation arises - that is do you treat them as a formation (a time for a pause) and wait for the BO of the formation and/or try to id what find of flaw it could be.
In the attached image, the highlighted area shows a lateral formation and also what can be considered a HVS. If one considers it a HVS, one is anticipating it to exit from the bottom since in entered the HVS from the top. Whereas if one treats it as a formation, one waits for the BO from the formation .
This is assuming one is not interested in carving the turns of a HVS.
While doing a review of material from the summer I had a question that came up and I hope you can clarify it for me.
When we covered flaws we looked at identifying what kind of flaws we were dealing with ASAP (ccc, dip, stall, hvs etc). Some of these flaws occur in what we now identify as formations.
My question is in regards to how you handle them when this situation arises - that is do you treat them as a formation (a time for a pause) and wait for the BO of the formation and/or try to id what find of flaw it could be.
In the attached image, the highlighted area shows a lateral formation and also what can be considered a HVS. If one considers it a HVS, one is anticipating it to exit from the bottom since in entered the HVS from the top. Whereas if one treats it as a formation, one waits for the BO from the formation .
This is assuming one is not interested in carving the turns of a HVS.
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Quote from bi9foot:
When we covered flaws we looked at identifying what kind of flaws we were dealing with ASAP (ccc, dip, stall, hvs etc). Some of these flaws occur in what we now identify as formations.
Think back to the point in time where many people had concerns over how to differentiate the different types of flaws which appeared throughout the trading day. At the time, I suggested 'not to worry' so much about learning to differentiate the types of flaws as we would (at the appropriate time) learn to 'see' things in a different way - a way which would appear easier to understand. After discussing formations in September, note now, how few individuals post on 'flaws' providing problems throughout the day. Once one has formations firmly understood, most 'flaws' simply disappear from the table (so to speak). In other words, each trader witnessed their own mental 'transition' from an area of uncertainty to one where clarity existed.
By design, struggling through an obstacle, only to later to find a solution to overcome the hurdle, allowed everyone to immerse themselves in the process of undergoing the mental 'shift' necessary for success. As such, 'seeing' the market in terms formations first (and flaws second), shrinks the areas of 'uncertainty' down to a more manageable number, and improves the learning trader's ability to trade.
Lastly, I see no Lateral Formation on your attached chart. Pennants form from Two Bars, while Lateral Formations result from three bars. Once Price exits the Lateral Boundary (either high or low), the Lateral Formation ceases to exists (unless the exit results in a Formation FBO).
- Spydertrader
Thanks that was the clarification I was seeking.Quote from Spydertrader:
'seeing' the market in terms formations first (and flaws second), shrinks the areas of 'uncertainty' down to a more manageable number...
Lastly, I see no Lateral Formation on your attached chart. Pennants form from Two Bars, while Lateral Formations result from three bars. Once Price exits the Lateral Boundary (either high or low), the Lateral Formation ceases to exists (unless the exit results in a Formation FBO).
Ahh! need to remember the 3 bar requirement for lateral formation
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