Technical Strategy

11-17-08 12:00 PM

Sorry. I posted wrong chart and had to attend to something.

replay

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I look at the screen and begin the day.

two bars give me a tape.

three bars give me 2 tapes.

I am going to deal with making money on bar 4.
 

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I see bar four as an ftt on a tape level 1 which is below level 2 trading and NOY waiting until the end of bar four.

By considering YM's bars I have a head start since there are, by well into bar 4, 8 bars going on 9 bars.

This time differnetial is a nice pleasant one and, as you will see, in days ahead when we get to using two charts on a computer, that there is sufficient time.

The logging will also be nothworthy since the M signals in a cluster show YM leading ES when trading is coming into view.

The panes will show the hold in blue.

The thrid tape is a latral using bars 3 and 4 and the blue line shows long as doe comment 1. on the overview.
 
To see how the day is going a lookback is in order to determine what is going on in level 2.


Here is the view of level 2

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Look and log in the remarks etc.

I have 30 minutes to add my comments.

As an intermiate using both YM and ES I am looking, at this point in time, at a ND (non dominant) on a day that both dominant and non dominants may be traded. So I expect my trades to be closer to 15 than 7.

I am long in a non dominant tranverse of a carryover that is short on both YM and ES.

I am going to call the extreme going to high volume as an am opening phenomena.

If I do not get a greater volume on the red traverse coming up I am going to bear down on making sure I have YM signal that is speaking about a "long" in some manner. No freak out just keeping my eyes peeled.

I am treating the spike on the top of the bar as a major "occurrance."

I spoke of two "occurrances" ; the spike is number 1.
 

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Spikes

In intermediate we have YM telegraphing to the ES and the ends of bars that are extending the range or trand or traverse are important.

The end of the bar, where it is in annotating and where it is in the movement of a profit segment, is a TELL from the market to you for your data cluster and on to the A D and A of MADA.

Efficiency is the topic.

As a bar ends (or, latter in skills, in intrabar occurance occurs) it may reach its maximum volatility and the related volume is ending a surge on PRV, then you are haviing a first chance. In trading there are first and second chances given you. In between these you need to bear down as see that the first chance came and went. The first chance is over and you are anticipating the second chance coming up.

Presently, in boot camp both chances are just simply missed. effective means trading confirmed traverses after the end of a given traverse.

The first chance ends as price retreats two or more tics into the close of the bar.

The par of the bar from the end back to the close is the "spike" or lightening rod type apprearance of the end of the bar.

By recognizing the price movement into the end and back a tic, you look at the dynamic of the volume and see that volume confirms that the price is going to receed further.

Lets call the above "awakening to spikes".

You have awakened and now we turn to making money (batting).

We step back and reason critically to understand that SCT uses sequences and we talk in scientific terms about price and volume.

A bar is advancing the trend of the level under view. Relative increases in volume are used to advance price momentarily. This brief volume surge coming and going is volume accelerating then decelerating. Later, we see it all quite nicely in four concurrent other places. For now, we use the "awakening" narrative going forward in time and step back the "before" the spike began and use our senses to get the whole sequence down from pre spike to spike.

Two pre spike things: steady volume transition (dom or non dom), then a brief volume surge begining near the end of the bar (we now have YM, then ES doing this in stereo, as well).

The surge beginning takes us to the end of the price extension, we hit T when the volume surge extinguishes and the volume goes into an underdamped state to return to the pre existing volume transition of dom or non dom.

This was the (first chance.) The second chance is the C to O of the bars and the following extreme value of the second bar. After that it is an IBGS.

In this case on 17NOV08 we have a point 1 of a short traverse at the spike..
 
Blotter

Lost my charts (and all annotations) twice, order entry froze a couple of times, and even had to reboot the computer once!

Had updated all of my pace lines last night, in addition to adding a couple of mods to my trading interface, so everything felt a little unfamiliar and off.

The introduction of the YM and new log were also a little unsettling.

With the above in mind, there were stretches of the day where I was not calm, confident and certain about the market's TELLS.

However, I am just as confident now trading for real, and equally comfortable holding through vast stretches of time.

I feel the blotter is an accurate reflection of the day's events, and I know precisely where to focus my efforts.

Many thanks for the above in-depth commentary, Jack. Be sure that I will study the contents carefully.

<img src=http://elitetrader.com/vb/attachment.php?s=&postid=2181178 width=800>
(click on attachment to enlarge)
 

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Chart

I've reproduced the annotations to the best of my memory.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2181209>
 

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Using a tape from point 1 of a first traverse of the day we look for point 2 and we find a spike on a bar with an IBGS.

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For illustating purposes, I am trading below level 2 and pointing out how YM leads ES at times of level 1 endings and the "occurrance "of spikes, previously described.

I use the intial tape and its VE's to emphasize the ending of tapes at the time when volume signal sequences are helpful.

We have to look at two bars (P and V). And find the surge in the second bar which gives the price spike that is traded.

During the traverse we have the volume PACE shift to High; not sustaining the volume comes after the surge, then price spike.

On Intermediate this sets the scene for point 3 and the FTT of the first traverse. Att FTT the second trade of the day will occur for Intermediate.

The trades below level 2 include trades at each of the points 1 ,2 and 3 and then the dominant tape into the ftt of the first traverse.

At all times YM telegraphs each of these moves.
 

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Quote from Neoxx:

Blotter

Lost my charts (and all annotations) twice, order entry froze a couple of times, and even had to reboot the computer once!

Had updated all of my pace lines last night, in addition to adding a couple of mods to my trading interface, so everything felt a little unfamiliar and off.

The introduction of the YM and new log were also a little unsettling.

With the above in mind, there were stretches of the day where I was not calm, confident and certain about the market's TELLS.

However, I am just as confident now trading for real, and equally comfortable holding through vast stretches of time.

I feel the blotter is an accurate reflection of the day's events, and I know precisely where to focus my efforts.

Many thanks for the above in-depth commentary, Jack. Be sure that I will study the contents carefully.
More...

Here are my recommendations for moving ahead:

1. You need to fix your computer.

2. You need to be able to annotate.

3. You need to adjust to the new logging.

It almost sounds like you want to return to the freakout world. Learning failure is a very serious way to take a trip to the exit of trading.
 
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