Technical Strategy

Narrative

Bar 2 almost an even harmonic, so overlap almost ALL.

Low of bar 2 broken on IR, entered short 4 minutes into bar. Volume subsequently decreased and bar ended on marginally lower volume (though still extraordinary). Sensory input is decreasing volume. But perception is hiking up a red Gaussian trail following an R2R valley.

PRV quickly accelerating on forming black bar, but unsure if I can trust it. Golden Circle effect precluded possibility of short traverse, so reversed when high of bar 2 broken.

As long tape proceeds, OB noted as internal formation. (aha! noted in log).

I should redraw my Gaussians (descending red, then ascending black) but will leave them be for the time being for instructive purposes.

Taping proceeds uneventfully. An IBGS bar which fails to reach the tape LTL commences the short tape, and shortly thereafter, as the long tape RTL is broken, volume surges and we have our traverse point 3. Successful range expansion occurs, followed by an internal on significantly reduced volume.

An OB breaks the RTL, as PACE switches up a gear, and I reverse short. The volume trough doesn’t precisely coincide with the breakout. No R2R materializes. The 3rd OB in 10 bars. After some intrabar indecision, the R2R appears. I look back and wonder if the R2R was in fact three bars prior.

I note the progressive reduction in volume since the open, and also that mid-day is approaching. I expect signal:noise ratio to progressively decrease. Not yet. 4th OB in 14 bars. Point 3 down signals the second traverse.

I note the VE. An FTT could be here soon. PRV erupts, then rapidly dwindles. Volatility is barely over half the previous bar. PACE drops. The bar doesn’t reach the LTL. I remember that I’m not riding a pendulum and, as advised, remain short until there is a non-internal bar that fails to extend the low. Which arrives on the next bar.

I reverse and annotate the newly formed channel.

Questions:
  • How far into bar can prv be relied upon?
  • In terms of the countdown timer, is there an optimal range - balancing likelihood of important change with need to analyze, decide and act in a timely manner - in which to record M and progress to A?
  • What role does Overlap play in timing?
  • What is the rationale behind, and the significance of, the increased frequency of OBs?
 
Narrative 2

I pick up the commentary late, having spent the past ten minutes scanning, image-editing, posting etc.

I am tempted to advance the left hand edge of the screen to the start of the new traverse in order to lock out the previous slice, but am unsure if this would be considered invention. So instead, I draw a vertical dashed line through the pre-FTT bar.

I fan the RTL of the first long tape of the freshly inscribed channel to accommodate the tape point 3. Now a brief short tape. IBV and traverse number three arrives. The midday doldrums are also arriving, and I expect price to drift lazily.

Bar 33 is a non-internal which fails to advance price. The prior bar made a higher high on reduced volume and volatility. We have concurrent tape and channel FTTs. I reverse two ticks below the prior bar’s low. The trough coincides with the breakout, and an R2R promptly follows.

Volume now languishing in VDU territory, so I expect foggy signals.

The cluttered chart makes me uneasy, but is unavoidable.

I must resist the urge to novelize my market commentary.

I note that I’m filling in the volatility column in the final seconds of each bar, after MADA has been performed.

PACE steps up a notch, I-R volume and I annotate a traverse point 3. The channel RTL approaches. Volume leaches away as rapidly as it appeared.

Price breaks the traverse RTL on increasing volume and I reverse long.

Questions
  • Given that volatility is a changing value and we are recording it quantitatively, when should it be noted?
 
Quote from ljyoung:

A superbe summary post Neoxx, particularly useful for mental cretins such as myself. And thank you too Mr. Black for the illustration. And thank you too Jack. I hope your recovery progresseth well.

lj
More...

This is, as suggested, superb.

Here we see a TRADING PLAN IN ACTION.

You are identifying collateral excellence at associated levels AND you are focussed on KNOWING WHAT YOU ARE DOING RIGHT within a trading plan. You shade (debrief correctness) decisively now and bank the skills and knowledge behaviorially and you can lookback and see when, in time, each facet dropped into place.

For your learning, you have established what you NEED to focus upon WITHIN the task schedule of drills that are being done.

From this point on you and your cohorts Will demonstrate just what working smart is. You have, as they say, eliminated all the excuses for not getting the job done that there are for these levels. This is a humorous statement suggested with a twinkle.

On your three ring learning binder, slip your statement under the cover's clear plastic front so your significant accomplishment is visible all the time.

All of SCT is a refinement process meaning now that the initial differentiation has occurred, we fill in the mind spaces so that the mind always has paths as resources for WHAT IS NOW AT HAND.

Many concurrent drills are under way. This is USE IT OR LOSE IT at work ALL the time. AND, moreso, it is THE example of reinforced learning that converts short term memory to long term memory.

Here is some housekeeping.

Before open on the log use the first couple of rows to set the scene for the day. This gives context. the 32 blanks on the preflight check give you the contemporary bounds of the up coming day based on the vey near past. Make sure the channel extends into the new day so you can understand the impact of the overnight machinations if any. The Earth has completed another rotation.

Above the first log page body put in the usual ID of the quarter, the date and the day of the week.

We have the verso's of all the log pages. As they become available, the narrative can be sketched on them, starting when you get half way down the current sheet (you need the prior sheet for reference up to then). If you see the narrative contains info not on the log, then improve your log, its vocabulary and your thinking as you do MADA going across the row. This is a bootstrapping to get the "market to speak to you" moreso than doing a lab sheet of data.

MADA is four separate thought processes done in cycles. You do each one with maximum focus on that step. You get to know you know by the MADA sequence. The MADA sequence tells you what the market sequence is and where NOW is in that sequence. You are hearing the market speak by having the hearing aid of MADA. To be a consumate listener and accept what the TELL is, is the key ingredient for you "trusting" the market. From that comes the VALUE of the substantive content of the "transferance" from the market TO you.

What may occur is that you get a new sense of the meaning of "melding". You become the market and the market becomes you. The mechanism and vehicle for this is the differentiated mind. The mind is simply built to be the market's partner. We are working on building blocks that touch the foundations.

In the sense of flow, we are building the major personal input locations for the core of the matter. The information goes through four sequential stages to come out as behavioral actions or reach closure on a lap. Behind the input locations is the finite set operating region for M of MADA. Successively, the established mind's operators pass forward on pipelines to the regions for A then D and to A of Action, the output area.

Then another cycle ripples through.

This succession of balls in an SCT pinball machine do take the balls to appointed places along appointed paths and nothing is random about it at all (regular pin ball machines are for recreation) . We simply turn what first appears to be a pin ball machine into another path control system much like the games that have two orthogonal axis of rotation or are simply hand held to allow balls to be conducted to the goal. As learning occurs we are engendering more and more control through skills and knowledge (all founded on principles used in a binary vector logic system). D and A only exist in a binary vector manner. The M and A before these are filtering systems all based on an either/or construct. There is no probability and every aspect is cetainty oriented.

Drills allow, over time (through experience), the sharpening of knowledge and especially skills.

At this point the sequences of the market are beginning to show as vertical paths on the logs in concurrence with the horizontal orientation of the annotations. We have some color on the logs in the form of the segemnt lines that are helping us discover the "lookback" aspect of data AND the sequence column is beginning to "show up".

What makes this superb is the appearance of "organization" and "partnership" and "trust, acceptance and value" of the market. Saying the market is always right is trite compared to establishing "trust, acceptance and value" which is a feeling based mutuality that, contrary to "rightness", is a limited intellectual only process.

"Trust, acceptance and value" is what establishes the emotions of support, comfort, and confidence in parallel with the intellectual aspect of "knowing that you know".

Now come the next four levels of SCT. We do spend 4 skill levels on traverses not because od difficulties but because of the richness and increased mental sophistication that is embodied.

As Liz says, accomplishing trading (for her PVT was the focus) on an expert level, reflects into all aspects of your life. The combination of intellectual and emotional balance draws a person to quest for knowledge and skills in all aspects of living.

Knowing that money is always available to the extent wanted or needed is prima facia but it is not the driver. If it becomes the focus, then a person is simply defeated in the process.
 
Quote from Neoxx:

Narrative

Bar 2 almost an even harmonic, so overlap almost ALL.

Low of bar 2 broken on IR, entered short 4 minutes into bar. Volume subsequently decreased and bar ended on marginally lower volume (though still extraordinary). Sensory input is decreasing volume. But perception is hiking up a red Gaussian trail following an R2R valley.

PRV quickly accelerating on forming black bar, but unsure if I can trust it. Golden Circle effect precluded possibility of short traverse, so reversed when high of bar 2 broken.

As long tape proceeds, OB noted as internal formation. (aha! noted in log).

I should redraw my Gaussians (descending red, then ascending black) but will leave them be for the time being for instructive purposes.

Taping proceeds uneventfully. An IBGS bar which fails to reach the tape LTL commences the short tape, and shortly thereafter, as the long tape RTL is broken, volume surges and we have our traverse point 3. Successful range expansion occurs, followed by an internal on significantly reduced volume.

An OB breaks the RTL, as PACE switches up a gear, and I reverse short. The volume trough doesn’t precisely coincide with the breakout. No R2R materializes. The 3rd OB in 10 bars. After some intrabar indecision, the R2R appears. I look back and wonder if the R2R was in fact three bars prior.

I note the progressive reduction in volume since the open, and also that mid-day is approaching. I expect signal:noise ratio to progressively decrease. Not yet. 4th OB in 14 bars. Point 3 down signals the second traverse.

I note the VE. An FTT could be here soon. PRV erupts, then rapidly dwindles. Volatility is barely over half the previous bar. PACE drops. The bar doesn’t reach the LTL. I remember that I’m not riding a pendulum and, as advised, remain short until there is a non-internal bar that fails to extend the low. Which arrives on the next bar.

I reverse and annotate the newly formed channel.

Questions:
  • How far into bar can prv be relied upon?

    12 seconds is a good point in time. The process, manually has the following points of interest. 1 min, 2, 21/2, 3, 4 and close of bar. Before PRV which estimates the increase/decrease automatically, you had to know comparitively how it was going intrabar. Naturally I made a chart for this as a graphic. As time passed the chart was internalized. By the time we get to leading indicators I will pull it out and post a filled inchart.
  • In terms of the countdown timer, is there an optimal range - balancing likelihood of important change with need to analyze, decide and act in a timely manner - in which to record M and progress to A?

    As the next bar beginns to form you can complete the MADA process. the open relative to the prior close is a "freakout" for some people; you can be logging during this so it is not available to freak you out.
  • What role does Overlap play in timing?

    For example in a long, overlap amounts are established (HL) before the HH ane the increase/decrease in bar volatility. As you will find there are "sequences" of data being established and its associated processing. Collecting it is M of MADA. The collecting is a process. this process is a thing that establishes how well you get TELL (hear). we are now going through a transition. You are coming to a point where you have time to do the tasks. as you feel this competence setting in, then you come to the time when you deal with the excellence of the situation. This is an excellence question and answer. A lot is going on in volume as well. In 12 seconds you know a lot about volume. Soon you will up the ante and see that there are many dimensions in volume just like the many dimensions you inquire about in price.

    All of this settles out as "Oh, I have time to do the job". I do not rush anymore but I SEIZE the information and gathr it into the certainty cluster I NEED to do Analysis.
  • What is the rationale behind, and the significance of, the increased frequency of OBs?

    I don't feel I can give a burst of humor here. toady is too important. Thank God for outside bars; it gives a break in MADA sort of. This is a complete answer and I am trying to prevent you from adding a new column called daily score of OB's.
More...
 
Quote from Neoxx:

slice 2

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2166097>
More...

Check this out later.

You need to coordinate the volume annotations with the good price annotations. It is okay to have a traverse level over the tape level and to have a channel level over a traverse level.

As Leibnitz and Newton proved in their approaches to Calculus (they phoned each other weekly) you can be integral or differential in emphasis but the whole picture is both.

Annotating works from the bottom up and skills work from coarse to medium to fine.

In volume you are beginning to recognize noise. Noise is not in charge; it just hides the signal to some extent. We will work to know noise is there and to keep focussed on signal. as sequences become more clear on each level and facet, then the noise role gets relagated fairly easily.
 
Quote from Neoxx:

Narrative 2

I pick up the commentary late, having spent the past ten minutes scanning, image-editing, posting etc.

I am tempted to advance the left hand edge of the screen to the start of the new traverse in order to lock out the previous slice, but am unsure if this would be considered invention. So instead, I draw a vertical dashed line through the pre-FTT bar.

I fan the RTL of the first long tape of the freshly inscribed channel to accommodate the tape point 3. Now a brief short tape. IBV and traverse number three arrives. The midday doldrums are also arriving, and I expect price to drift lazily.

Bar 33 is a non-internal which fails to advance price. The prior bar made a higher high on reduced volume and volatility. We have concurrent tape and channel FTTs. I reverse two ticks below the prior bar’s low. The trough coincides with the breakout, and an R2R promptly follows.

Volume now languishing in VDU territory, so I expect foggy signals.

The cluttered chart makes me uneasy, but is unavoidable.

I must resist the urge to novelize my market commentary.

I note that I’m filling in the volatility column in the final seconds of each bar, after MADA has been performed.

PACE steps up a notch, I-R volume and I annotate a traverse point 3. The channel RTL approaches. Volume leaches away as rapidly as it appeared.

Price breaks the traverse RTL on increasing volume and I reverse long.

Questions
  • Given that volatility is a changing value and we are recording it quantitatively, when should it be noted?
More...

Smooth narrative.

As time passes the log will show this depth of considerations. This is the first of four level 2's (traverse) skills. As each level is added we focus on refining the level 2. So more columns show up in support and the narrative incisiveness increases. The narrative will begin to focus on things like WWT, WMCN and IBGS as a staccato appraisal of slight movement from NOW to the right of now (an awakening anticipation).

At this point some Q's with respect to the P, V relationship two parts will start to come up. We will see the focus on Continuation will seem to be the "permanent condition" of the market's progress and the non dominant (change) condition is the non permanent condition" Having these things in mind MODE will become more and more defined.

The markets are counter intuitive. Some measures in Meyers-Briggs emphasize the intuitive as an opposite of "science"; we by passed this aspect of a person's character largely by going to a binary vector orientation.

the vocabulary of volatility goes from a measure (in tics) to a binary vector. Fortunately, there is a sequence when the symbols of volatility (I and D) become known. Knowing that we know is a goal and it is achieved by sufficiency. Getting an I (for Increasing) comes before D (for Decreasing) since we always give a bar a chance to the very end. when we get I we know that no dominant internals will be coming up or on a non dominant, we know an internal if any is coming to an end.

So now you are segwaying us into the Beginner Internals where we will do the differentiating of the D of volatility.

All of this, for dom and non dom's and their internals will reveal the process sequencing of traverses coming towards and into the "end effects" of traverses.

In the least this will be VERY exciting because a huge shift in conscientiousness will be occurring. It comes from the unconscious organizing into consciousness while we turn off our sensory imput as we sleep. This will be the AHA land of SCT for all of us.

As this part of SCT grows in richness, we also get to see a lot of the causal factors (for failure) involved in PA trading, now so popular among new vendors. Fear, anxiety and anger comes from the unknown. Knowing the P, V sequences is a healthy alternative and level 2 (traverses) focusses on this in drills short enough in duration that long term memory is established at a terrific pace. The gause of differentiation becomes a strong fabric during this interval.

As is now happening, switching from informing at my initiative to being responsive to moving forward from where you are from drilling on several themes concurrently, allows for specific and essential reinforcement of areas that WANT attention. Your mind is asking for additional drill facets to be able to drill effectively and efficiently within the prsent scope of activity.
 
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