The Documents by Jack Hershey

Quote from NYCMB:

Hi Jack

The attached chart was taken from your 12-14-09 02:02 PM post. I slightly edited it to make 5 min chart portion bigger.

Could you kindly mark your Comparison one and Comparison two in the chart?
TIA
More...

Thanks for the reference chart.

The two pink boxes are the times after point 3.

Both have VE's after point 3.

Comparison One

Compare bar 8 to the bar 1 for the short VE. The VE is less. And there is no IBGS.

Compare bar 18 to bar 12 for the long VE. The VE is greater. And there is an IBGS

Comparison Two (a difference)

Take difference of two bars .... 8 minus pt 3 (bar 5). Difference is small for that market PACE.

Take the difference of two bars .... 18 minus pt 3 (bar 16). Difference is great for that market PACE.

______________________________

Now we go to work.

You took the time to get that chart back into ET. We all thank you for the effort.

On the short you didn't get past step 2 simply because you went long on the faster fractal completion (That happened on bar 8.)

For some it (bar 8) was the third trade of the day. For others it was an FTT to FTT trade from bar 1 to bar 8.

Either way, a bookmark is in place at the bottom fo bar 8 and it extends to the right called the future.

A person who is doing MADA and annotating thoroughly is also looking at accelerating the slow fractal container by using bar 9 top. With no zone at play (meaning "handling" took place), bar 9 is an accelerated new point 3. Bar 8 and 9 are a container with no FTT, just translation long on a fast fractal. Bar 10 gives an early ftt and "look out below" to the bookmark.

I know life is tough as a person "transitions" to expert.

Bars 8, 9 and 10 are 15% of capital per contract margin. When "grooving" on these bars a person is seeing two ftt's and a ve when a bookmark is being busted. Note: On any two bar container if pt 2 is on the second bar it is a ve on that container (this is the case on bar 10).

I really feel that all this time being available and clear thinking puts a person in the groove and setting reference volumes for nailing "market sentiment" all of the time.

What you see on the first 11 bars is the opening range being set. A traditional CW type of thinking. It also shows that the range is the range and volume PACE is shifting.

The OB on bar 14 was a nice clincher for the rest of the day. 15 and 16 were cozy guys who set the opening range in stone and no overlap on 17 said to the FTT to FTT guy that lunch could be 15 miles away.

bar 18 is the educational bar. Further on less PRV a VE spike, zone is dead, nailed by an IBGS; you are going through logging paper faster than a speeding bullet: super bar........

condition 1 condition 2.

On the RTL and no volume. Lower than the trough on pt 3.

There is NO acceleration to be had after the VE AND dominant volume is LONG........ you open bar 21 with a flat top pennantand increasing PRV.

So for the next 30 minutes or so the market screams at you through the log to HOLD.

Circle key things on your log for quick reference. What the heck, go over this chart and make a log fo the changes on each bar and "feel" that post VE period "grow" to the ltl.

Feel the last black bar only be black so briefly. It gapped open long, and .... it was over .......

My annotation was poor since it did not drill down to the fastest observable fractal. But my log was crystal clear. Even the troughs were getting better (increasing black, after all).

See if you can read this post enough times to get out a log and log the chart.

This is the kind of pre xmas experience that lets you buy diamond earrings for xmas presents. Look ahead. Do the log for this so that next xmas you are running 50 contracts.

Tomorrow, make 15 copies of the log ; use 10 of them tomorrow. Make a real mess.
 
Quote from orion:

jack,

can you explain, why after B2B, - the 2R2B(a non dominant leg followed by a dominant leg) did not show up ?

thanks
More...

This is what I would do there ( in the context of the information that is provided in this chart you have posted ) but Jack may have some good advice on this for you.
 

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Quote from orion:

jack,

can you explain, why after B2B, - the 2R2B(a non dominant leg followed by a dominant leg) did not show up ?

thanks
More...
Your chart seems to be from the first day after the contract switched from ESM10 (your chart) to ESU10, and because of this and also probably because of your data source, there are some differences between your chart's volume bars and what I see on old ESU10 and ESM10 charts. Also, your chart doesn't use the recommended bar coloring.

This is why a proper analysis of your chart might not be possible.

Anyway, I had the pt 1 down at 10:00.
 
Quote from orion:

jack,

can you explain, why after B2B, - the 2R2B(a non dominant leg followed by a dominant leg) did not show up ?

thanks
More...

there was a thread a while back that ran for a year as a syllabus; it was named "Iterative Refinement"

The beginning month extended to two months focused on annotating thoroughly.

As shown to you above, there was a VE of two bars and price closed in the zone on each bar. An ftt also occured on the faster fractal.

This is where the green bookmark line came from.

We build FFF (Faster Fractal First). See FXwave for the opposite building process.

At an ftt and FTT in this case, a person gives attention to the limits of the container of the paradigm. It is a parallelogram as explained in the syllabus a while back.

From a point 1 of a parallelogram an annotater seeks the next points on all the nested fractals and he plays by the parallelogram rule and its limitations.

You go to point 2 apparently since you noted the B2B, the first leg. You reversed long on the ftt and FTT point 1. I widened the box to include all of these points.

When trading SCT there are no losses involved simply because the trader is always on the correct side of the market.

At point 2 you can stay long and trade to the FTT which follows the last FTT you reversed on (bar 33).

Some people trade point to point since it makes more money and sometimes they use leading indicators to pick up extra ticks carving the turns.

From point 2 to point 3 you are in a non dominant short of a dominant FTT to FTT long. I know one watches the "unrealized profits" part of their trading platform. If they did they would have seen a peak of profits at point 2 and a falling off of profits as the GREEN bookmark was approaching.

The bookmark is there because of the parallelogram limiting case. And coincidentally it is where a wash trade occurs relative to the last FTT reversal.

Coming to the bookmark signals a lateral parallelogram with black dominant and rd non dominant.

going past the bookmark signals that a long parallelogram is no longer possible. MORE IMPOTANT, FOR NOW, IT SIGNALS THAT THE PRIOR PATTERN COULD BE EXTENDED TO INCLUDE, BY FANNING THE PRIOR POINT1 AND POINT 2.

Since it does, then you are looking for a new point 1 to begin the next parallelogram long. This point will be at the end of the volume, price move from point 2. This trip Is a r2r 2b 2r fast fractal that was on bars 36, 37, 38 and 39.

So where is the skilled trader operating? He is able to read the market and see the nested fractals.

A learning trader is doing the work to get his mind filled with "whats" that fit together "where" they belong.

For this episode on the 10th you were on page 5 or so of your log. The V, P order of events was just a run equal to a 25% increase in working capital. Nothing very significant.

My post is an exact repeat of a post about two posts back.

When I post, the reader prints it and punches holes in it. He uses a hi liter. He gets out a blank log sheet and does a log as he reads my sentences. He annotates a chart right along side the log he is doing.

Lets say he is like covel or babak or the three T's. None of these people can read. They cannot even read slowly or repeatedly until they "get it".

There is NO referential place in thier minds with respect to ANYTHING I say. Please get one thought that I post. then you can put other thoughts around that first thought you got in your long term memory.

Here is a thought. From bar 33 to bar 39 a person can increase his working captial by 25%. This is not 10 CDS's insuring one lousy defalting mortgage.

30 points per contract double your capital. An 8 point discussion is 1/4 of 30 points.

There is NO need to watch 4 points per contract come into your account and then see 4 points per contract go out of your account.

Here are a few n00bie suggestions:

Look at this chart.

See if you can see the correct side of the market. Find it by drawing a line to the right of the price bars.

See if you can figure out when price is going through any of these lines you draw.

Make a list of such trades. How long does it take to make 30 points per contract?

Would it take you 8 hazardous years to write a book on trend following?

Why is 20% a year the standard?

Spend two months learning to annotate thoroughly.

Learn to get to a point 3 so you can draw a parallelogram.

In the infinite scheme of things, those 8 points do not matter. What matters is beginning to learn how to learn. Drills are how you learn how to learn.

We can always tweak here and there. The basic thing is the PATTERN and how you nest the fractal patterns.

You stay in the market on the correct side of the market. Occasionally, you do a wash trade simply because it happens to you on the fractal level you are trading.

Washing betweem bars 33 and 39, cost 35 minutes of your life.

Here is a test.

How many rows did you fill in on your log from bar 33 beginning to bar 39 ending?

If you filled in the glossary term B2B in a cell did you fill in b2b, 2r, and 2b in the adjacent column. Did you fill in r2r, 2b 2r before you came to bar 39?

Are you messing up volume? Are you meesing up the log? Are you messing up the price?

Use up paper. Make messes. Debrief in a different color. Your mind wants the work out.

Thank the person who wrote Little Black Sambo.
 

Attachments

Hi Jack

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Quote: Jack Hershey 07-27-10 08:24 PM---

a)... This was the ending peak volume to the maximum volume in the pattern (which occurred near the beginning of the pattern)

b)...The first trough to peak measure occurred in the leg from point 1 to point 2.

Quote: Jack Hershey 07-28-10 12:39AM---

Comparison One

Compare bar 18 to bar 12 for the long VE. The VE is greater. And there is an IBGS.
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After several times of reading the above instructions, I still can not figure out why bar 12 was selected to present the maximum volume from point 1 to point 2. As a matter of fact, bar 12 has minimum volume among bar 11 (point 1 and IBGS), bar12, bar 13 and bar 14.

One more question regarding volume. Volume is decreasing from bar 1 through bar 4 (OB). Which bar (point 2) is the second Red of R2R? TIA
 

Attachments

Quote from NYCMB:

Hi Jack

----------------------------------------------------------------------------------
Quote: Jack Hershey 07-27-10 08:24 PM---

a)... This was the ending peak volume to the maximum volume in the pattern (which occurred near the beginning of the pattern)

b)...The first trough to peak measure occurred in the leg from point 1 to point 2.

Quote: Jack Hershey 07-28-10 12:39AM---

Comparison One

Compare bar 18 to bar 12 for the long VE. The VE is greater. And there is an IBGS.
----------------------------------------------------------------------------------
After several times of reading the above instructions, I still can not figure out why bar 12 was selected to present the maximum volume from point 1 to point 2. As a matter of fact, bar 12 has minimum volume among bar 11 (point 1 and IBGS), bar12, bar 13 and bar 14.

One more question regarding volume. Volume is decreasing from bar 1 through bar 4 (OB). Which bar (point 2) is the second Red of R2R? TIA
More...

I was trying to be helpful. I felt that providing my comments would help you move forward.

Trading is NOT making a rule set for gaining "perception". Perception is part of M of MADA. Another part of M of MADA is getting a data set for doing the A D and A of MADA.

We look at bars 11 through 14 differently and in a different context. Point 2 is on bar 14. What is pleasant about this is that there are two peaks and one trough for dealing with going from pt 1 to pt 2. The order is P, T, P.

I didn't select bar 12 for anything more than getting a successful consideration of the VE, the focus of my comments.

Bars 12 and 13 afforded logging the xRTL up of the prior formation.

Bar 4 is the second R of the R2R.
 
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