Technical Strategy

[nkhoi]

Here is a reference chart that shows three panes: annotated price on three nested fractals, volume and annotated volume pattern to match the price pattern.

Volume is either dom or non dom as you build the pattern fractal by fractal. I use slope of the lines that go from Peaks to Troughs.

This illustrates the difference between the OODA betting in an up down environment (See traderzones classic dum dum dum dum dum dum post where he points out his up/done syndrome of CW) from the MADA pattern combo of 3 price moves for 4 volume moves.

This illustrates how minds are built one way of another. The critical thinking element is the condieration of dom and non dom volume moves.

In terms of MLR or RTM thinking there is the issue of regression to the MLR mean or what precedes it, movement AWAY from the mean. Dominance is what moves it away and non dominace it what moves it towards. this is a volume measure that is simulated with price points usually (an indirect measure of regression using an altenate variable to the principal variable involved.)

Pragmatically all of this for OODA tradrs is the source of the negative emotions proven by research to be associtated with OODA trading. the cure, so far, is professional theapy and setting a success standard far from the market's offer. this will prevail for the forseeable future, luckily. As a consequence, in Larry Harris, there is an established heirarchy of trader styles.

MADA fits in under speculation and its sub classes that deal with parasitic things which include anticipation and technical analysis. This puts MADA as a subset in a place where binary logic applied in an information context of non probabilistic information theory. All of this related to the deductive thinking of the Scientific Method. All of PEP and its applications are designed to minimize risk while optimizing taking the market's offer. Consequently noise and anomalies are not present.

OODA is often described s having a kindred relationship to poker. Poker is inductive in nature and involves risk taking to win or lose.

 

[nkhoi]

here are some tweaks on your chart. I focussed on justthe portion needing tweaking. It is annotated th my cmments as part of the M of MADA rule set.

We can see that DAx is a good index to trade with SCT. thanks for filling in the third portion of the 24/7.

Here is an illustration of the beginning of the day.

as you see there are 9 members of M showing in 10 events.

In analysis the one to one correspondence is illustrated. this never changes and is a part of the mnd's inference.

we put all of those things in french fry's mind when he did all the drills he asked for to be able to grow his inference. the inference organizes as he sleeeps by having his unconscious sensing join wityh his conscious snsing and inference. This sums up to a great deal of long tern memory under the headings associated with three of the mind's operators: spatial, patterns and movement. These are the same as for driv8ing a car.

At the end of bar one about 1.5 times the daily range (H-L) has been either realized or is in a trade not realized as yet.

notice how closure of the routine is reached frequently and that I know that I know.

You see an entry and a reversal based upon MADA rules. Depending upon expertise (as defined as the mind's level odf differntiation), more or less money is made.

A trade is made on an ftt and a point 2. As you see you may be annotating these points as a consequence of doing the work of part I Market. You platform gave you the yellow of the OB which has two points on the bar (at either end).

As you see there is no critical thinking involved. What is involved is doing a routine. Everything on the display is done as the routine is done.

when I first came to ET, I posted a print of a day with 17 trades. It was quickly determined tat it was "photoshopped" by a person who, apparently, is very discerning and can see more than an ordinary person. I remember when he blew up a few decembers ago.

Later, I posted prints from an IB account to show how opening trades worked in the market place. The timing they provided is the same as the events in the illustration shown where the two behavioral actions took place.

H1 dictates "continuation".

H2 dictates "change".

To traders, these words are the results of Analysis of a M member (element) of a finite set. In ATS's these things are known as "look ups" or records.

Money is made during continuation and profit segments are taken during change. During change two trading actions are taken by a behavioral action.

On some platforms reversals are able to be sent to the IB; on some platforms a reversal is done by using double the contracts on the "exit" since that complete going flat and also puts the person on the opposite side of the market.

this thread was set up to understand k200 could be traded using PEP and its application SCT. Reduke did not want trading aspects in his thread (or at least not PEP and SCT). There you had asked about the trades of k200 and your request was not welcome.

This is how trading k200 is for me using MADA to apply SCT. SCT means Seamless Continuous Trading and it is based on two hypotheses.

Why not take the opening price and go long to the ftt coming up? As you see it is easay to do since you carryover the container inwhich the ftt will be appearing.

 

[nkhoi]

the trades in this illustration are fairly common and as you see market PACE is slipping lower.

the advent of yellows means we are fanning for each and chacking to see if new ftt's occur. when they do we know to reverse on them and swet up the beginning of a new move on the various appropriate fractals.

we start to learn by thoroughly annotating. We keep track of the mutations of the forming bar and relate that the the time when the H! and H2 are applying.

Most of the time we are in H1 and that is the C time where profits are accumulating.

So at this point you have about all of the members usually used in expert trading to know that you know and to always be on the correct side of the market.

what I did was use the glossary of logging to go through the stages of seeing H! come to a close and H2 come into play.

as you see trading is fairly leisurely since most of the time you are just extracting the market's offer.

for several bars we go throught the repition of staying on the correct side of the market and handling the opening movement of the market according to a short Sentiment of the market.

the range expasion slows and pairs of trades keep adding to the multiple of the daily range.

Over 10 days ago we embarked on fast tracking annotating those days. then we logged all the annotations to see three levels of fractals nested using just EOB cases. Had that been done then trading would have become a natural routine using MADA.

We also could have been doing ES and the DAX daily to buld the mind by doing drills.

I can imagine what it is like for persons who do induction instead of deduction with binary vectors. Their minds become scrambled eggs aftr a while

 

[nkhoi]

Quote from charts:

Jack, thank you for taking so much time to give us another glimpse in the way you see the market.

Those circles on the beginner chart, and your MADA sets are obvious to your differentiated mind, so you can carve the best turning points just choosing if you do it at beginner, advanced or expert level.

In asking you about the trading points I was looking for two things:

2. Getting a feeling of where on those best bars (previous bar BO, bar open, sub or tape RTL BO, etc.), or the earliest subsequent bar after the optimum one, would you hit T if your mind were less differentiated and you didn't see the optimum points.

A while back SKO asked about how long there was to do a trade.we termed the period as one that ran from the first chance to the last chance (second chance).

It may not b apparent to people watching the market, that there are many levels to trade on. For the beginner level on k200, trading on the thading fractal was the suggested approach.

So the "best bars" are those WHERE the end of the move from pt3 to FTT are where to look. Specifically it is WHERE you are coming into an FTT on the trading fractal. IT could be a new FTT as we saw occurs.

To do this you can set up a check off list to get you to that place. You do not trade until you get the that place; you just hold.

So You can make the checkoff brief if you don't like to do very much to make money.

The condition just before an FTT on the trading fractal is when the trading fractal is past the pt3 and, on the fast fractal the thrid move is under way and id also dominant as is the pt 3 to FTT.

This means you draw horizontal lines on the volume chart and look for a higher volume than before on the trade. Exit or reverse at that time.

"higher volume than before" is not too difficult to use as a trading rule. I do not use trading rules but you really want to use trading rules. My alternative is to use MADA rules and the fact of doing M A D A is a way to really make all that the market offers once your mind has been built. No one really wants to build thier minds so they can trade in a manner similar to driving a car.

Now, the second part of your request. You miss the "higher volume than before" you will notice that you are in a period AFTER an FTT and AFTER the end of the thrird fast fractal move. when you notice that then do the trade. This can be 1, 2 3 bars later but you still have many many bars in the time zone that follows to begin to seek to find a higher bar than before that is the end of the profit segment you ae now in.

this generation is referred to as the "sandwich generation". young adults are getting P and J sandwiches form their parents after college days have passed. So this post is a P and J sandwich post for this type of person with this mind set.

An FTT was invented as a trend ending event. Mentally, the market is dominant; volume is peaking and the price movement cannot make it across a parallelogran from one side to the other. Annotations show this not happening. Thus the trend has ended and the overlap of the next trend begins after the peak. This movement is non dominant decreasing volume, relative to prior circumstances. At BO of rtl and RTL these two events, lead to increasing volume on each fractal sucessively (unseen to most as BO's and as volume troughs to peaks beginning).

My comments are what is happening and they have a name as determined by people who cannot "read the market" but belive they can. (See clancy for example). Reading the market presumes a reading vocabulary. Children spend a long time (relativley speaking) working through gaining vocabularies in two forms: sound and sight. Sound comes first and sight is added when they acquires the symbols of the alphabet and the understanding of forming words and the understanding of forming snetences and paragraphs, etc...

PA trading is the "run dick run " level of reading. Indicators are just formed words.

In SCT, the concept of sentences appears as the same as sentences: an expression of a complete thought. SCT uses the "order of events" as sentences. Here you know you know WHERE you are, WHAT is next and how fast the order of events is going along.

A W or M day is like four paragraphs.

An ftt or FTT is like the end of a sentence and the pattern expresses a complete thought.

You questions are like questions on syntax and sentence structure.

you may be able to see that "Trend Following" as a book is an empty book. It says nothing about trend following at all.


1. Getting recommendations for specific drills to help in further differentiating my mind when dealing with the P,V based MADA.

Copy this thread and put it into a three ring binder. It is about 350 pages, I am told.

Get some tabs and use color to code references. Do drill rferences in blue. Number thenm in the order of there appearance from 1 onward.

Pick four more colors for tabs. Use one color each for M A D and A rules.

One the top of the pages, divide the horizontal space into four parts. Use tabs labeled with four different roman numerals to tap the four parts: I Market, II trader, III carryover, and IV Making Money.

Set up three other three ring binders and do the ES, k200 and DAX, completely every day satring 10 days backform when you start.

for some of the seminal drills attach the results in such a way that you can fold the results into the binder by putting the result on a blank page to the left of the result. This means you can fold out (like in Playboy) a result for reference as you do work. In fact several can be folded out.

What is basically going on is you are learning to read like you learned to read as a child. At that time it was easy to do since that is what minds do at that age. as a teenager you learned doto do deduction is a classroom and it was easy at that time as well.

Today you are taller and heavier, at least and everything is harder or impossible to do as a learner. Your brain is mostly unused today since it was never filled up with anything.

reading filled up many small spaces or regions. Traders do not go about filling their heads with the equivalent categories of things that children do when they are told to as they learn to read.

Your 350 or so pages will have hundreds of tabs on the side and top. In adding them you discover that the information was given to you with directions for gatting it into your brain as a mindful experience. this is the 30 annaversary of "mindfulness" as a science. It inventor has persona;lly congratulate the group of people who established one of two locations in Tucson for mindfulness. Both buildings are owned by one of the Tucson traders. The first is for learning mindfullness in the context of being cured of PTSD for veterans. the second is simplya large trading room where our group beginning this week each have tradingstations. It is on two levels: teachers and students. teachers learned over the last few months and now they are teaching a new wave of Tucsonans to get ready to teach a new wave this Fall. Teaching is really "supporting learning". Sunday meetings and Thursday lunches and prepping the Universe and doing IAS's and logging and debriefing were not sufficient. Doing trading in a common space works out better.

 

[nkhoi]

Here is an annotating suggestion for doing it correctly. There is a simple drill at the end.

About 1957 while reading Magee 4th Ed I found that parallelograms depicted fractal containers. three points were involved: two on the right and one on the left. This pragmatic consideration set my life in motion. I did parallelograms as suggested. I knew for some reason to follow instructions. the principle was this: by following instructions and doing it hapily, I enjoyed getting what I was to do correct and I avoided unneccesary complications.

I always drink out of the near side of the glass as well. Again, the reasoning is simple; I get my thirst quenched by not having to take off my shirt during thirst quenching.

Sometimes I run into vertically oriented people (See THINK, IBM Journal 1950's on personal orientation theory). To ease them into the right and left trend line orientation I do a drilll with them called ruler sliding on stock charts.

The rule is placed on the RIGHT side of the chart in their favorite...a vertical orientation.

slowly the ruler is slide to the left to introduce them to left and rightness.

I ask them to stop the ruler when it hits ant price.

this happens very soon.

I ask them to place a pencil at that point of price contact.

then I ask them to get forceful

I ask them to be pushy.

I ask them to p[ush the ruler so it moves more to the left and still keeps contact with the ruler.

they, in fact begin to rotate the ruler about the pencil that is holding one part of the ruler in place.

I ask them to stop this action when the next price it hit or touched.

they often do after some adjusting for overshooting.

Then I ask them to hold the ruler in place and drag the pencil from the point it is at to the other price contact point.

then I ask them to set aside the pencil and ruler and look at the RIGHT TREND LINE FOR 1 HOUR WITHOUT BLINKING.

So I would say that the carryover was a non dom black as a move 2 followed by a dom move red to the FTT on bar 10.

then you had dom, non dom, dom fast fratal moves to complete a black (long ) trading fractal with and FTT on bar 19.

So two trades are in on the trading fractal level by bar 19.

them you ride on down to the FTT you show on bar 42. This trading fractal trade is many bars longer than the first two since it goes through midday. Now we are half way through the day.

A long trade follows as you show.

the later short is intersting since there is an FTT followed by a NEW FTT.

By drawing the bookmark green from the FTT to its cancellation you have set up getting to the NEW FTT which, in turn for the same reasons is followed by another NEW NEW FTT.

getting the outer slow fractal in place is beginning to show up by the end of the day. It gets carried over as do the exisitng trading fractals and fast fractals

 

[nkhoi]

 

[nkhoi]

Here you see a red bar above lableled 1. I has lines associated with in on the fast fractal levlel. By working with available clean information, only, thos lines came into being as follows in 7 steps using cases to get the right to draw a paralellelogram using three points and observing that the rtl is on the corrcet (rtight) side.

This is the M of MADA.

we are at the end of a day nad do not have but one fractal determined for carryover. We NEED a minimum og THREE.


Thus we have to wing it and work with what e have to get annotating to continue until we build three nested fractals.

Up to that time, we are SOL for doing any level of SCT trading. That is how it goes when a person is a beginner and has not done about 10 days of charts to get the nesting of fractals under way.

So on thei chart All that can be done id drills on the annotating in a prpper way. As we see corrcting mistakes is not working since I have to work through some levels of mistakes to clear all the mistakes out of the way.

The mind does not erase mistakes that are in long term memory. These memory glitches have to be taken out of use by building a wall of usable recourses in front of them. There is also inventions which have been built in front of older correct practises that have been blocked out by inventions.

A new trader also has things in his mind as he begins. He got those as her grew and learned. If they are contrary to SCT and MADA, then they have to be dealt with as well. when a person does drills at the beginning , he, in his way, changes the drill to what he wnats to do instead of what is needed. So after a while these rearrngements have to be work over and blocked by additional correct activities.


A trader needs THREE nested fractals to trade. The trading fractal is in the MIDDLE.

Fractals are buuilt (annotated from the fastest observable on up.

Be mindful of these MADA princilpes of critical thinking and logic.

AFTER the point of trend failure, the non stationary window focusses on the SUCCESS of the movements in the NEW trend. IF and WHEN this effort fails BY NOT COMPLETING THE NESTED FRACTALS, THEN to old trend is renewed to GET TO IT NEW POINT OF FAILURE.

By looking at what we have to work with, we begin to construct the nested fractals.

So far we have three ftt's on the same levle so we draw green book marks to assess their compilation capability in terms of making a new slower fractal.

the short and long do not make a short trading fractal since the long ends too high. We throw the short aside and consider the next two (long and short. We see that the short ftt is above the first ftt, so a trading fractal is possible.

When the pink RTL is runn ftt to ftt, there is a geomtric interference and so se fan to have a geometric solution.

As a trader we could just be trading ftt to ftt and getting the job done. As we past the last ftt we went long.

The forming bar finally finishes as it went through a bunch of mutations. There were MADA laps or cycles as well and a lot of logging.

We can reverse on the post stitch BLK >>>OP top because we are doing a ve and we will or will not be in the "zone" after that.

If zone, then M1 ftt is next trade, If not zone then we are r2r in a fast Fractal. after ftt on beginning of upcoming bar.

Now we have advanced to a TWO fractal level of building. we have fast fractals and trading fractals

 

[nkhoi]

HERE IS WHAT WAS GOING ON.

Since we did not have "sufficient" and cogently provided carryover, it was necessary to begin to WORK with what was available and just eliminate all mistakes and replace these with results of introducing anotating rudimentary rules from M of MADA.

critique.

ftt's and FTT's are not getting done successfully in many places on these charts. I beleive there is a consequence: A person has to waita while to see if things are working correctly. this can generate "feelings". The feelings switch from MADA feelings to OODA feelings inmy opinion. It is like going from trading under certainty to trading under "betting".

We need to resolve this in a way that has good financial consequences. Here is the plan for dealing with the combo of earnest learning and growing wealth concurrently.

My preference is to move to reversal tradin ASAP and to also have an attitude that incurring losses is not part of learning to trade. Two drills come into play.

drills

1. Do reversals at FTT's. You have a trading fractal: trade it using FTT's and reverse to take profits and begin the next trading fractal. treat all FTT's on the trading fractal as POINT 1'S (The BEGINNING of a Hold.)

2. Sideline if you do not know what is going on. Always bbokmark in green with a horizontal line to show the current parallelogram limitation beginning at point 1 of the trading fractal. If you are approaching a green bookmark after point 2 of the trading fractal, take a small profit by sidelining. here you are learning to make money from two volume moves to get to point2 and one volume move to get to point 3 and one volume move to get to end of the Hold of the trading fractal. either you are "sweating out" volume moves or you are finding support and comfort in the "order of events" of the pattern unfolding. BY sidelining with small profits when you cannot go through the P to T to P in a parallelogram that is on its "limit", you learn to nail the fast fractal three moves within the point 2 to point 3 trading fractal move. as time passes you get to see that, specifically the second move of the fast fractal is where you also reaching a limit on a finer fractal.

Summary.

What will happen is that the opening trade will be entered using carryover parallelograms and money will be made AND a reversal on point 1 of the new trading fractal will be a successful reversal. Then you bear down to do MADA, the log and get in a second profit taking as the miiday part of the catenary gets under way. In this period before the PM settlement of mutual funds, etc, shows up you get to focus on learning to do thorough annotation. You have handy your old drill sheet on the complete cycling of the order of events that interlocked the three nested fractals.

Here is where during midday the "latral" case often comes into play. within laterals you "see" dominance and non dominance and you are looking at a parallelogram that is "horizontal", a case that is one of the cases we use and which from the library has its own boxing and background color. This IS a sub observational context of the fast fractal during volumne PACEs where you saw by drills and the 3D Excel the gaussian distributions tied to PACE delineations. Imagine yourself as a jet engine mechanic and you are remembering the training you when through to be able to have a license to step up to a real engine and make sure periodic maintenance was right on the mark. If you goofed off in training drills, here is where your skipping things because you were too smart to do the work gets you putting flight passengers at risk (flight passengers are the profits you are using for trading).

we are gong to learn to annotate thoroughly at some point. Follow the rules of M of MADA to annotate; do not use any short cut inductive inventions any more. the reason is that they do not work. do not put tape on a hardball that is to be used in our ballpark. Give the ball to the nearest wastebasket to keep it from falling over when the crowd roars.

 

[nkhoi]

This part of the first illustration is annotated to make a point about the green bookmark on the FF.

The ftt of the FF is there (See top of bar 30). I was erasing some lines to get the chart as simple as possible; it may be blurred a little.

We are long from the FTT of TF2. There is no parallelogram for the SF showing but it is either a short SF or a point 2 ws put in at the FTT of TF1. Most traders use these things as context.

We are long and we did Hold on all cycles of MADA

The illustration shows how a bookmark deals with an FF2 and deals with the end of the FF2.

Small note:

bar 30 and 31 form a FBP.. bar 31 nd 32 form a FBP. Each FBP has an ID as a single bar with an OHLC. this is two bars with each having an identity. I used the H's and L's to form a trend with an rtl and an ltl. Subsequently a hitch allowed me to fan the rtl.

On bar 34, four events occur for the trader Holding long on the TF. This is what occupies the trader's mind in the awareness category as the his monkey brain is doing its blah and yada assigned tasks in order that the traders mind can be aware and even compassionate and even wise.

Being aware and compassionate about an ftt, a bo of an rtl, and price going further on dominant volume, is what allows the heart and mind to be in synch and have an awareness of comfort, support and confidence (all heart feelings which come from below the neckline of your body.)

Later on bar 42 an ftt occurs for the FF3 and this is a possible FTT of the TF3. You see annotations on the first reference illustration that look like an ftt and an FTT may be occuring all according to the line weights. There are always line weights for each fractal

end of small note.

Now we can look at the elephant in the room in the above illustration

It is the trading fractal context extending from bar 12 which was a TF FTT. We do not know if this is a value that is outside of the RTL of the SF in existance @ bar 12. There is no annnotation on the third SF level as yet.

What do we know about the completion of the SF's, however, and in general? We know the limits of the parallelograms that form any parallelogram. And we have three iterative refinements that are useful. this is awareness stuff and maybe even wisdom we are capable of having in the space all regardless of our 3 to 5 second monkey mind part time assignments we give it to keep us in control by not saying "yessir" or "GET AWAY" which are choices to let the monkey mind be in control.

Notice our tooling for the mind and its coherence is our EMwave PC which shows us coherence.

For the pattern on any given level, we understand and "see" (have the wisdom) that three moves of P and four moves of V comprise the pattern.

On bar 35 the SF LTL drawn in is broken as a VE; then the LTL of the TF3 is broken as a VE. And the ltl of the FF3 is missing and not annotated.

On bar 35 the SF LTL drawn in is broken as a VE; then the LTL of the TF3 is broken as a VE. And the ltl of the FF3 is missing and not annotated.

Here are the lines slicing bar 35

We stay in the zone for 8 more bars AND only then does the M1 and M2 begin.

In terms of learning it is a good idea to have the "zones" in place to be able to have an awareness of this information. Our rules for anotating give us the wisdom and our minds CAN summon this once it is in place for our O1, O2 and O3 to use.

For trading the TF, we are in the groove and long and looking for the FTT reversal signal. It comes on the ftt of M2 as is stated as part of our inference which is located in the differentiation of our minds (all long term memory information). This awareness of how trading works allows us to IMMEDIATELY know that we know the M@ ftt is where the FTT of the TF resides. This information in long term memory gets there by drills.

Drill.

1. Annotate the zone which is between two lines: the old LTL and the new LTL.

2. do acceleration when a ve or VE occurs on a ltl of a parallelogram. Do not switch fractals to do acceleration. reach back to parallelogram qualitified poionts and get the RTL slopped more extremely as much as possible.

as we follow the M1 and M2, we get to shove the Blue SF rtl up into where the misplaced TF 3 rtl is and we shove the TF3 up so the M1 ftt is new point 3.

I didn't move those lines so you can see how not doing acceleration delays the trader's ability to make money by using the MADA and its swift and decisive processes.

here is the picture and the FTT of the TF3 and the SF long are on the IBGS bar. @ the time of the GS, the trader goes short to begin the overlap of the TF's (old TF3 and new TF1)

I think everyone can see that the "zone' labelled ftt, where it is knwn that an M1 and M@ are coming, is going to also have a bookmark wipeout within the fractal (TF) wherby the FF does not complete a three move series of events.

As you see I really have to do a lot of work on just the first illustration of four to make the p[oint that ftt's and FTT's need to be done correctly using the compilatiion in the three ring binder under the four parts. there is some work involved in learning and there is the awarenss aspect of trading to make money.

I don't care about the criticisms of my lack of ability to communicate; that as you will see is just monkey brain talk form people who brains are controlled by "monkey talk". If they were in charge of their minds, they would be aware and compassionate and wise. Look briefly at TZ's blah blah blah response to the pattern and my 17 calls one day in advance.

Here I am explaining how to get through a day by learning and trading in an earnest and aware manner. I am putting in the "fix" for each and every deviation by a trader when he is using something other than what is called for.

 

[nkhoi]

ee the combination of events that occurred on the illustration. I made the last two bookmarks yellow so they would not draw immediate attention and defeat you from seeing the orde of events that occur.

You have quite a few inventions in your illustration and I am not going to point out all these errors simply because it would be a distraction. Later I will make a suggestion on what is what in doing critical thinking.

I want to pick up the pace a little as well. to take over a week to get through a portion of a day is a little demanding in terms of what is required vis avis the patience of others.

Look at my annotations and see the order of events and how the order of events affects things and keeps M A D A relatively simple. the log is where the intrabar order of events unfolds in support of the EOB residue which is always observable.