Technical Strategy

I've had a couple of requests to post a full and updated list of vocabulary terms for the various columns of the log:


Monitoring


Volume

I/D
  • R2B - This symbol means two things: A bounce off a LTL on a "short" channel and a bounce off a RTL on a "long" channel
  • B2R - This symbol means two things: A bounce off a LTL on a "long" channel and a bounce off a RTL on a "short" channel
  • R2R - This trough symbol marks the end of the overlap after the end of a "long" channel and after the start of a "short" channel which was signified by the FTT that gave point 1 of the new SHORT channel.
  • B2B - This trough symbol marks the overlap after the end of a "short" channel and after the start of a "long" channel which was signified by the FTT that gave point 1 of the new LONG channel.
  • I - R = Increasing Red = this refers to the successively increasing red volume bars which occur after a bounce from the RTL on a "short" trend AND after the initiation of a new "short" trend
  • D - R = Decreasing Red = this refers to the successively decreasing red volume bars which occur after a bounce from the LTL on a "long" trend
  • I - B = Increasing Black = this refers to the successively increasing black volume bars which occur after a bounce from the RTL on a "long" tred AND after the initiation of a new "long" trend
  • D-B = Decreasing Black = this refers to the successively decreasing black volume bars which occur after a bounce from the LTL of a "short" trend
  • P - Peak volume: this symbol refers to the highest volume of a price move; price is unsustainable at this level.
  • T - Trough - this signals the lowest volume of a price move; a volume breakout will precede a price breakout
Pace

These symbols refer to the horizontal rays going across the volume pane.

  • X - Extraordinary
  • F - Fast
  • M - Medium
  • S - Slow
  • DU - Dry Up
  • VDU - Very Dry Up
P chg - pace change

Here pace change is denoted by an arrow pointing at the symbol for the present pace.

Price

CH-T - channel trend
  • LT - Long trend
  • ST - Short trend
  • INT - Internal - Price moving horizontally as the market pauses for breath. Internal formations consist of pennants (aka triangles) [symmetrical, flat-top, flat-bottom] and laterals
TR-T - traverse trend
  • ADV - Advance - price advancing in the direction of the traverse
  • INT - internal (see above)
Analysis


Mode
  • C - continue
  • X - change

Direction

  • LT - a black bar occurring in a long trend
  • ST - a red bar occurring in a short trend
Sequence
  • D - Dominant
  • ND - Non-dominant
Stage
  • 1, 2, 3 and FTT - which at this level, would correspond to the stages of the traverse
Vol- bar volatility

No vocab established for this column yet

Ovrlp -bar overlap

  • IB - inside bar
  • OB - outside bar
  • NO - none
  • SM - small
  • HF - half
  • MO - most
  • ALL - all
Various abbreviations, relating to the degree of overlap of a pair of bars.


Decision


  • W - Wait
  • EN - Enter
  • EX - Exit
  • H - Hold
  • R - Reverse
Action

  • L - long
  • S - short
  • cov - cover


That should be everything! :D
 
Some interesting (and relevant) excerpts from The Brain that Changes Itself...

Competitive plasticity also explains why our bad habits are so difficult to break or "unlearn". Most of us think of the brain as a container and learning as putting something in it. When we try to break a bad habit, we think the solution is to put something new into the container. But when we learn a bad habit, it takes over a brain map, and each time we repeat it, it claims more control of that map and prevents the use of that space for "good" habits. That is why "unlearning" is often a lot harder than learning... it's best to get it right early, before the "bad habit" gets a competitive advantage.
More...
Finally, Merzenich discovered that paying close attention is essential to long-term plastic change. In numerous experiements he found that lasting changes occurred only when his monkeys paid close attention. When the animals performed tasks automatically, without paying attention, they changed their brain maps, but the changes did not last. We often praise "the ability to multitask". While you can learn when you divide your attention, divided attention doesn't lead to abiding changes in your brain maps.
More...
During the critical period BDNF turns on the nucleus basalis, the part of our brain that allows us to focus our attention –and keeps it on, throughout the entire critical period. Once turned on, the nucleus basalis helps us not only pay attention but remember what we are experiencing. It allows map differentiation and change to take place effortlessly. Merzenich told me, “It is like a teacher in the brain saying, ‘Now this is really important – this you have to know for the exam of life.’” Merzenich calls the nucleus basalis and the attention system the “modulatory control system of plasticity” – the neurochemical system that, when turned on, puts the brain in an extremely plastic state.

…Once the main neuronal connections are laid down, there is a need for stability and hence less plasticity in the system. When BDNF is released in sufficient quantities, it turns off the nucleus basalis and ends the magical epoch of effortless learning. Henceforth the nucleus can be activated only when something important, surprising or novel occurs, or if we make the effort to pay close attention.
More...
Merzenich told me, "Everything that you can see happen in a young brain can happen in an older brain." The only requirement is that the person must have enough of a reward, or punishment, to keep paying attention through what might otherwise be a boring training session. If so, he says, "the changes can be every bit as great as the changes in a newborn."
More...
 
Quote from Jack Hershey:

Beginners spent huge parts of days in a hold for one channel. Four to 7 Actions happen per day and closure is reached on each cycle of MADA. You are not getting closure on each pass at this time.

Try to get closure and then try to add to your analysis the ability to compare the column entry symbol you are doing AFTER you write the entry symbol. Better still enter all Monitoring symbols and THEN as part of Analysis compare the progress of each Price AND Volume combination as you go down the rows. Learn how far up the log is impotant. To do this use a colored pen on the log and draw horizontal lines to "LOCK out" old data that is not pertinent. The starting point on this will be to NEVER look back into a prior traverse data set for analysis record logging...

* * *

...The "fit" of the P, V relationship is in precise concert with the dynamic of the real time unfolding markets. I and D of the symbols of the volume column at some poiint MUST begin to liven your minds with this dynamic. I and D are not like values on a lab sheet; they are your "directions" for going to the right place in your mind to continue to think about what you sense and let it combine with the contents of your mind that apply at themoment as "inference". from this you get PERCEPTION.

SCT trading is all about PERCEPTION and that is why the name came to be: Seamless Continuous trading.
More...


My current priorities include:

  • Full and accurate annotation
  • Using the I/D column for Gaussian hiking (vs blind data-logging)
  • Improving my appreciation of PV synchronicity
  • Reaching closure at the end of each MADA cycle.
  • Activating the nucleus basalis.
When I get home from work, I intend to get started on last week's charts, and will try the process in real time tomorrow.
 
Quote from jack hershey:

here is Advanced Beginner Chart 2. See more annotations for trading at Advance beginner level.

In bootcamp folder area of computer make a separate folder for beginner and advanced beginner. It will get hairy when we get to intellectual levels on SCT trading.

This is still boot camp grunt level @ 15 trades a day. The ATR is still ging to be nice as we go through a REDO of the financial industry and a REDO of the regulatory Agencies. We will also have the criminal proceeding to help the ATR along.

you are working to annotate fully and log fully. As you press forward working smart you will be able to fill rows in ahead of time after a while. I will suggest things to enhance you're doing this at the right time.

At some point SCT traders move to the right of NOW on the chart. And for Advance Beginner you begin to draw lines on the log to close out historical data that does not fit into your MADA window width on the chart. This is all part of working smart.

Note it is 5pm here. I have a 3 hour cardiac recovery session from 6 to 9pm tonight.

I feel I have set you up for tomorrow. My time tomorrow is limited and they put me out perhaps and I am on narcs after that plus I have limited movement and dressing changes etc...

Just work smart and do the MODE on traverse level inside of the Channel envelope we established. Start with 1 contract so we can do a family of seven curves later.

Do not go live with contracts until you have Advance beginner in hand as well as you did the 10 days of beginner.
More...

Hi. Neoxx:

Jack just asked me to pick up copies of the segments of the charts for the 29th and the segments of the the 30th and the corresponding four logs for each day.

Where are they? I can't find them.

He wants me to print them out for him as you posted so he can check your progress.
 
Quote from brandx:

Hi. Neoxx:

Jack just asked me to pick up copies of the segments of the charts for the 29th and the segments of the the 30th and the corresponding four logs for each day.

Where are they? I can't find them.

He wants me to print them out for him as you posted so he can check your progress.
More...

Hey Brandx.

29th - thought I was still drilling, so was waiting for prints. Realized late in the day that I may have been required to work real time.

30th - at work

Please tell him I've organized my trading and learning binders, will post drills with the new log tonight, and post intraday segments tomorrow.

Thanks,
Neo
 
Day 11

In retrospect, I suspect that my annotation is incorrect here.

The golden circle effect may have necessitated an atypical first traverse construction, and I may in fact, be well into my second traverse.

This characteristic is shared with charts 5 and 9, both of which were preceded by short trending days that ended in a dominant traverse, and for which a carryover channel was in place.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2153402>
 

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