Quote from PTVtrader:
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Thanks for the two Q's.
The FTT that occurred in the intial read channel of the day signals the beginner to go long.
He does.
His efforts at logging and annotating have some elements that have introduced the fact that the day is TRENDING. He is now long and keeping his eyes peeled.
As any person begins to trade with any approach, the person is striving to get past the intial ingnorance (not a negative word) that is there that he has to deal with.
At this time, there is so much money available to extract that we get to advance skills quite rapidly and wealth is being build rapidly as well.
The period of trend overlap is a very important period. A while ago I posted a pictorial that had all the zones in it for consideration during overlap. It was put up to aid a person who was shifting from CW as a programmer to consider making money using an ATS based on SCT. (greaterreturns). At that time I was oriented to the logic that a person uses to code and keep the coding focussed rather than loading it up with a lot of poor looping sub scripts.
The gold circle comment was along those lines. you picked up on it, fortunately as it is very important in critical thinking as trading learning is going on (especially from a scratch start).
Learners have a tough time because they do not know how to learn and they focus on "wants" instead of "needs".
All learning is happening on the forming bar. NOW is a place where a few things must be considered. As you will see you have the same underlying unconscious concern for the two questions.
As each bar forms after the FTT, the learning person is annotating and logging.
All beginner trades begin on a retrce (nondominant) after a failure to traverse with lack of volume to further extend the range.
The BO comes and it is a volume trough always. Neoxx so far cannot differentiate between a peak and a trough in volume which is the difference between an FTT and a BO in price. we are working on getting the PV relationship to start working because it is where he will find out a pair of variables is involved in trading (V and P).
So as a person annotates and logs from FTT to BO it is dull and a move from left to right horizontally speaking.
After the trough and the BO (they happen together) a lot changes. Most important is that the overlap ends and the prior channel is unimportant usually. BUT it may be still important only if the Volume does not go into the next step of the usual sequence (increasing without color change). There was a flaw (I call them WWT for what wasn't that). you can see that black volume did not increase as anticipated.
At this point sirens are clanging and bell are whistling because we are in a space not normally experienced.
I used to dwell on this using a term that was preempted in the training. The situation is that the beginning trader has to take an action to deal with the WWT and it means he has to Act to get on the right side of the market.
the non posted log of Neoxx a few days back would have shown his whipsaw tradesand his enter exit manner of trading. That is not what a beginner in SCT does. He does holds and reversals and the method is antiwhipsaw in its logical annotating and logging. If you lack logging and annotating it makes holding and reversing fairly difficult.
When a flaw occurs, a correction of the side of the market often comes up in critical thinking about the evidence being annotated and logged.
Here we see rapidly (by the PRV script attached to the volume) that a reversal is required BECAUSE the flaw was eliminated by the increasing volume and the colorcombo being just what was needed.
So a reversal short is taken AND the ANNOTATION is a NEW point 3!!!.
The new point 3 reqires a point 1, of course. the beginner uses the old point 1 since it is avaliable. This is in coding ATS's is what is called a look back decision. The blue channel is precluded for this reason since there would not be a look back.
A major failure (especially in PA trading) is that the persons and coders who do black boxes nearly aways screw this up. the window in a non stationary data base is extremely important. A whole set of phantom logic is required to do it right and to backtest anything.
Beginners keep it simple. Points 1 and 3 have to be on the right side of the channels. Scripting for this is simple and it is a combo of binary and base ten algebra.
So for the boot camp I will introduce a concept and a technique of logging the distance back the nonstationary window goes back. It will be a checkmark in the left margin of the log.
If you wish reflect on two common topics of people who are in states of fear, anxiety and anger while using the vertically oriented CW. Failure to understand lookback causes them two generic problems: early exits and giving up potential profits and then those prifits turning into losses. So this is a BIG principle to understand.
at the beginning of intermdiate when we get rolling in a few days I will introduce the width of the look back as a pane and I will introduce at expert level a second pane that defines the width of "certainty" in the place looking from the future back to the near Present on the future side of the Present.
As we become expert a plateau is reached where EVERYTHING is EASY and SIMPLE because the operation of the market is understood.
Right now I have to deal with people getting to the intial place where they have their first glipses of the market.
We are now at the place where a child would look into the open pages of a book being read to the child AND the child "sees" for the first time that the book has words on the pages and they can be "read" by using "sounds".
For humor, observe some of the ignoramuses (sp) commenting in this thread as detractors. some have been whining away for years under their childish names.
