Technical Strategy

As regards redundancy in logging, I obviously adopted the other extreme with the drills, in only indicating bars where a reversal was performed, or a new traverse delineated.

Given that the most important times are the end of one trend, the start of another, and their mutual overlap, is that where the log must focus, or would that approach miss the differentiation and potential language-building to be had along the way (e.g. seeing the character of dominant and non-dominant moves, the internals particular to each, and the relationship of volatility to internals in each)?
 
Here is a blow by blow on the P, V pre flight Check.

1. Is the big picture and filing information. The premium is foind at indexarb.com or prehaps in the Iterative rfinement thread. you can use yesterday's in a pinch or reset the S/S using the premarket values coming through and with them the close of yesterday. This is a DJ and YM measure as compared to the $INDU cash value.

Check the IT trend (Intermediate Trend) and if an FTT on the IT is in effect. This means you are in an IT trends overlap if you note Y for YES.

Synch is where, after open, the premium comes to the mathematically determined offset (See indexarb.com) AND on your lists you read that the offest is there by doing the arithematic between $INDU (CASH) and DJ and/or YM (indexes).

Put this event in the -1 column for use tomorrow as background.
Note the entry bar for the day.

2. For days -2, -3 and -4 fill in the the channel action as W or M or trending or whatever happened. As the day goes by you can fill in today under -1.

Check the preopen bars to see if you are within yesterday's ending channel. This will also enable you to note the gap arrows for the open.

As the day goes by you note the range limits and note their difference at close od ES.

As you get to the end of midday (on volume PACE shift) note the internal center line or F of of FTP or FBP internals.

these days we may have to shift the scale from 2 points to 5 points or greater. Note this as a mind calibration.

On channels there is a VE level required to expand the channel width. Note this as the day gos by. you can do stick outs if later you have a greated/lesser value; this gives a range for refreshing your mind when you rewrite the values down as the days go by.

Things happen during the day. Note the highlights from the log at the end of day.

Medium part 3.

The line drawing of channels notes the channel FTT trading frequency. In medium, note the number of medium trades. (See X in MODE and R in D column.)

Do VE volume for the traverses by end of day.

Laterals are either rest periods or expert slalom trading grinding opportunities. Seasonally, they can become important. the last skill acquisition on each level is handling the Laterals. So looking at them during preflight is a good drill. If you note the end bars of midday you have a context during the changing of seasons and how the days of the week go and how news affects midday before or after news or reports.

For some slopes of channels laterals occur on the non dom traverses. Medium is where traverses are important. Laterals are the least moving internals and OB cast shadows that turn into laterals. Besides Y/N you can note average lengths. there is room because the # substitutes for Y.

Expert, the fine of 4., does have one row that is done by all skill levels. This is the opening tape often called rocket trading. Rockets do occur other times. It is more important to know the rocket range than the number of bars. Put in the range in points and ticks.

Tapes have VE's as we know. Note the volume level required and do the strikeout for establishing the range on a lesser/greater basis.

S/S has five characterisitics. It is like a MACD indicator centered on the premium. The offest is usually the premium at the beginng of the day. I see the noise bracket is missing. Sorry I will add it and attach new improved sheet. Two pairs of rays are used on the S/S. the inner pair has to be breached to signal a leading indication of price is coming up. The outer pair is like the STOCH hold signal which indicates the "smart money" is doing something persistently. Contemporary values are in Iterative Refinement.

The premium drifts, we keep track of the drift in points with a point counter. When 4 points is hit a lot of position trading "reversion" bots activate in Chicago. We note this drift time.

I feel the Connors Hayward volatility compression signals are followed by more improtant signals regarding smart money. frontrunning smart money becomes important since they push so nicely. Over time, the envelop of smart money relative to the premium does two things; it drifts relative to the noise envelop and then, next it expands as distorts in the directio9n of smart money's efforts relative to the cash. we keep cash out of the picture vis a vis signalling just since it is so sluggish as a composite. We record during the day the "lead" of the compression relative to the normal. So this is the time from start to minimum of compression. we do the same to time from the minimum through enough expansion to the time of the beginning of the persistence of smart money. These kinds of times and their timing are used in support of trading contracts at multiples of ES market capacity. We splice, harmonically, into the opportunity that is the front running window of smart money.

For DOM we look at how being out of balance works. DOM av ratio B/A is how the out of balance in cummulative values of Bid and Ask sides can happen. If we are seeing mor than 2 1/2 on average durinf dominant traverses we are also looking at PACE,overlap and voaltility on the logs during those times and especially when the traverses are coming to maturity. (I will post on this once things settle down more and the real time trading days record begins to show up in boot camp or I will pullsome trading over from Iterative refinement to make points similar to the PRV posts today.)

DOM cummulative is a super indicator of uncertainty and certainty in the CW. I have prints of 700 on both sides just before incredible wipe outs on 50+ T&S under maximum cascading (Do the camtasia and audio of 22FEB06). Seeing this for past few days is instructive. We note it during day from logs.

Wall size is similar to DOM cummulative. these oreds do not get filled and they represent the largest the minority can get to prevent further price movement on the "right" side of the market.

In summary, the preflight check is done mostly as the day goes by and, ofcourse, it is then ready for tomorrow. It is all part of the "Tomorrow's Newspaper Today" modus.

So this sheet become a log of context on three levels. The 2003 preflights around 28OCT were seasonal except for the current carrier of the financial industries current contributions to ATR and volatility. what happens overnight after most of it is filled in is the coarse od the preopen and open.

I feel filling in four days row by row is an excellent mind building drill opportunity.
 

Attachments

Quote from Neoxx:

As regards redundancy in logging, I obviously adopted the other extreme with the drills, in only indicating bars where a reversal was performed, or a new traverse delineated.

Given that the most important times are the end of one trend, the start of another, and their mutual overlap, is that where the log must focus, or would that approach miss the differentiation and potential language-building to be had along the way (e.g. seeing the character of dominant and non-dominant moves, the internals particular to each, and the relationship of volatility to internals in each)?
More...

Excellent. Excellent.

We have now arrived at the differentiation level where the PURPOSE of MODE is now becoming clear.

The log is the heart beat of the SCT. Overlap is where we locking segments of profits. As time passes, we will do the same thing for ES as is shown on the PVT attachment. You see there, that we focus on coming into the B2B (long trough orientation). This is what happens as the overlap of position short traverses comes to an end and the long dominant traverse repeats.

We will probably never look too hard or long at the volatility vs. internals, instead we will be looking more and more narrowly at carving turns to extract all of the offer.

By approaching certainty from an SCT orientation rather than any other we gradually build more and more differentiation into the mind through drilling.

The divergence in the two curves is a measure of learning it was good to see Excel come through; it looks lick reticence to automatically change scales.

We have amajor storm here I must get this machine shut down. Liz is screaming at me in a friendly way.
 
Two more questions that were on my mind as I woke up this morning...

1) After an FTT, and when a new dominant fails to emerge, the principal factor in deciding whether to chart a new point 3 and reduce the traverse slope or to chart a new point 3 and point 1 for an entirely separate traverse seems to be the lookback distance, as PACE reduction would be equally applicable to both scenarios. We introduced slicing to begin an appreciation of lookback distance, but I notice that a number of times, the correct decision in the past has been to annotate a new traverse, even within the same slice. Are there more sensitive ways to determine the lookback distance?

2) In follow-up to your Jokari window PV elaboration, if we see a long channel as two diagonals (point 1 to FTT, and FTT to RTL BO), they will occupy the upper two cells of the Jokari window (respectively). If we now zoom into the long diagonal, we have another Jokari window within the upper left cell, which cycles through one complete figure of eight with each completed Dom/Non-dom cycle. Is the purpose of adding tape gaussians to my chart to appreciate the second zoom?

Also, you mentioned before the weekend that we start on Beginner Internals on Monday, but there were no follow-up comments over the weekend, nor acknowledgment of the updated log. So to avoid confusion, I will continue with the Advanced Beginner log until this is clarified.
 
Narrative 1

I note that Friday’s (super?)channel was broken late pm. The ATR was 32.2, a significant decrease from the two prior days. I note that there are no news items until the 13th this week. I also note an opening gap up, on observing the last bars of the premarket. All of this is marked in the upper rows of my log.

So today, I annotate all three Gaussian levels, sharpen the narrative style, tighten the log, eliminate mid-day whipsaw-trading and engage in interactive dialogue during RTH.

12 second prv shows I-R and a step up to extraordinary. 20 seconds later the low of bar 1 is broken, and I move from M to A, entering short at the end of the (MADA) cycle.

On bar 4, 12-s prv shows 350% at 12 seconds, but at bar end, it sits at 89%. I amend my Gaussian annotations.

So far, a short tape, and a lateral within the tape. WMCN  a non-dominant tape, then a traverse-confirming point 3 down, followed by a long traverse to complete the channel that began with yesterday’s last long traverse.

Bar 6, early prv signifies a return to dominance and I log my 2nd row. We are still in the short tape. I have another look at Spyder’s chart from Friday. He ends the day on a long tape, no traverse. His annotations would suggest a completion of a long traverse on a return of long dominance.

If I think I have a dominant short tape, I would hold through a long tape, whereas if I’m expecting a carryover traverse to complete, I would take the opposite action. WMCN becomes clouded.
 
Narrative 2 is still underway. Just a note that I'm available for interactive real-time dialogue, as and when appropriate. Am rechecking the thread at regular intervals.
 
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