Quote from Neoxx:
So we're generating our new trading vocabulary organically, as an infant would do when first learning language, learning names for objects and events after they are seen or experienced.
You've encouraged that I ask questions, especially of the non-housekeeping variety. I have three, and hope they are not off topic.
1) The 4-cells of the Jokari window describe the PV relationship. Even on the most recent chart, however, there are several occasions on which they do not seem to apply, even after completion of sequences is accounted for. Are there other requirements and exclusions?
For a given skill level you are a applying it on up to three fractal levels at any given time. Looking at Channel level we use it as illustrated. A figure 8 occurs as the channel sequence ensues.
Now you are working on traverses within the channel. There is a Jokari window within one of the channel window cells for the dominant traverse and another Jokari window within another of the channel window cells. What you are observing in these two places are the sequences of traverses. The parts of traverses are called tapes.
Let add more to the picture. I talked about a channel trending with dominant and nondominant portions. There are two types of channel trends. To go through a figure 8 you are going through both of the possible channel trends. This means the two channel cells you did not add the subdivisions into just happen to get filled in when you are thinking about the OTHER possible channel trend. So long trends use two traverse cells and short trends use the other two travrse cells.
We are already working thorugh the building blocks. We see the window on two levels for 4 levels of trading. I may post some scans of intraday trading of stocks at some point. I leterally drew in a preprinted format jokaris within jokaris to KNOW that I knew at particular times of the trading cycle.
So the cellular movement with two levels of cells takes on a particular combination of a level 3 path with a level 2 path on the level 3 as its carrier. Later when we are trading with capacity considerations in mind, we will add harmonics and their carriers to the picture. In this way we can trade at a multiple of the capacity by doing partial fills.
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2167392>
2) M and A have depth, which continually seems to be increasing. The other two parts of MADA are also considered as discrete intellectual processes, on a separate footing, to be identified and cultivated. Given that D and A are expressed as binary vectors, where is their depth?
It will begin to show up as a lateral "slider" in time. I have introduced you to it already by my assessment of your mental timing relative to WHEN the market "speaks" to you. I am gradually giving you this depth as you get the routine to become automatic. I have had to turn you 180 degrees away from the screen so far. Once you get to be able to turn around and use M clusters of data to do A then we can better proceed to capture the "slider" aspect of D and A.
Right now we are spinning you 180 degrees to fragment the CW freakout of using single data elements to make D and A decisions which you persistently do in non shaded areas of the debrief comparison where Spyder answer sheets that get you shaded.
D and A depth is measured in milliseconds. I will take you down to 100 milliseconds on 10 millisecond rep rate feeds. you won't be missing anything when we start "carving" turns using partial fills.
3) You've made several references to the market operating as a matrix, where the operating point migrates rather than jumps, and always does so under minority control. Who are this elusive minority and how/why do they supercede the majority?
lol Welcome to trading. This is like our episode on color. On level 2 we take our first looks at the beginning of trading. It is called tape reading. The "tape" was a "ticker tape". Sweet young things carried ticker tape to a raised platform along a wall where they chalked the tape contents. Big money read tapes directly but they liked coffeee poured by sweet young things from their silver services.
The tape was and still is deceptive to most. What makes price move is your question? There are three players in trading and you learn of them in one of the five glossary reference books. Harris's "Trading and Exchanges" Oxford Press but he lives here in Tucson in the "Unviversity" part of town we all live in. Read part I the structure of trading beginning on page 31. Notice also on page 199 where we fit into the 32 block trader heirarchy.
briefly, the BBid and BAsk are two prices very close to each other. They are spread apart a little according to market liquidity. SCT traders are "market" traders who sacrifice the "spread" to get rich. Floor traders do not get this concept, they focus on "making the spread" a trivial value on the way to rich.
So you see three traders: the offer (BAsk), the bidder (BBid) and the trader who wants to make money (the market trader). we do reversal trades that simultaneously exit, then enter at the same price by using a market order twice the size of our "position". This is what we HOLD to make money.
At BBid and BAsk the book shows how many of each. Similarly for four more levels on each side we see those values and we see their sum. Using pepe script this information sits to the right of the forming bar as ten horizontal bars.
As time passes, the small side gets eaten away tic after tic. The eating is done by market orders. Both sides are being eaten. One side is eaten by losers and the other side is eaten by winners. In ET it is unsettling to read about that which is written by people who do not understand this and believe they are correct.
You may notice the plight people in ET. Two plight groups. One plight is that they enter and price just moves to their stop (see above loser comment). The others are people who put in exit limit orders thatare never reached. They make a lot of money and then the market turns around and goes to their stop instead of their target.
If you look at the two values at BBid and BAsk you will see that one is smaller and the other is larger. When the smaller one is eaten up forst then the market shifts the BBid and BAsk pair. It you enter on the smaller side, then you become "even" or at "wash" after this pleasant shift. You will soon notice that the sum of the five levels which is smallest tends to have those levels eaten sooner than the other side whose values just sit there and move further and further from the shifting BBid BAsk pair. Later you will learn alot a bout "two pairs" trading of the tic charts (YM and ES where YM leads ES when it is important).
So the vocabulary word we will use is MIN for minority when it comes to tic price movement. At that time we will be making turns to the tic by using the "slider" timing (deep timing depth)
As a brief humorous example, look at th "timing" of an indicator NOT tuned to a given fractal. There is discussion that indicators lag. Untuned indicators really lag and using the wrong signal from the indicator further fouls it up. Adding a short trm indicator with a time shift to fix this creates a multiple signal generator compared to the untuned lagging indicator. Ugh.
We trade with the minority and ahead of the minority so we get pushed by the smart m0ney which trades with the minority.
When the minority side switches to the majority side we are doing out reversal at that moment. as this majority comes into view four tics from the BBid or BAsk pair, we observe this as a WALL. pepe put the wall up with script for usand thir is script so you can look at this set of 10 values as stalcatites or mites (your choice) on the DOM.
SCT trading doesn't skip steps of understanding the markets. we have to differentiate the mind to get to these places. withour differentiation in a logical manner, the mind becomes crosswired with a set of jumbled things called "set ups" and their "high probability" of "working".
We use our minds to get "workingness" and we do not do "probability" with our minds. We do certainty with binary vectors. we learn from coarse to fine and build anotations from fine to coarse all the while using binary logic as we go both ways.
Coarse comes into the picture as a mind differentiation requirement of MADA. The Annotation mind differentiation requirement is to do certainty with geometry by knowing two pints form a line and parallel lines can be drawn from an existing line all into the future. Hiking Gaussians and peak bagging is fun. FTT's and channel overlap is such a pleasant thing.
We are the minority inmany ways and we trade with the minority as represented by limit orders.