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The Documents by Jack Hershey
- Thread starter TIKITRADER
- Start date
I will be returning to this thread soon to continue on with the pdf's of JH material and to highlight areas of interest.
Quote from jack hershey:
Sorry to be so tardy in responding.
I'll try to be thorough with my comments. These comments will remove the "sometimes" aspect of what you re sensing and processing.
Very good use of terminology. The terminology goes a long ways toward having a consistent logging process.
During any time you are using three nested fractals. The middle fractal is the trading fractal.
Anytime you are in trades and using MADA and annotating and logging. you deal with the fastest fractal first (FFF was the term used for shorthand).
Your comments concern the apparent lack of consistency after ve's. You also comment on WMCN during a ve.
This being the case, I will go thorough the order of events on the table and in doing so, I will remove the "sometimes" by drilling down to give you a "tree" that handles all the branches.
Let me give you the short answer first.
I apologize for past posts that may not have been clear to you. I have difficulty covering all the bases for everyone in any given post.
1. IF you see a VE test it for the zone which is a close on or beyond the original ltl.
2. Examine the next faster fractal pattern and see, if during the bar, the pattern completed. You know you know how to handle a completing pattern on a faster tractal. If there was completion, do the usual regarding the trading fractal which had the VE.
That was the short answer. And it is telling you to trade point to point on the trading fractal from now on. You earned the right by your awareness of doing steps 1 and 2 above.
Lets work further into the scene of WMCN coming into a VE and what happens after a VE.
As usual, volume leads price and this is how "sometimes" gets eliminated.
All VE's or ve's occur after point 3. This means volume has been dominant for a while and it (volume) is telling you something about how all three nested fractals are behaving. Look at you log and size up WMCN on each fractal, particularly with regard to volume and the P's and T's on those three fractals.
You are looking at arriving at a P or going further towards a P in the next few bars. Get the context by looking at the page number of your log. Look at the bar number of your log. Look at the market PACE and determine the contemporary PACE shift going on. This is just my "tuning" you up a little here and there. Context is where "sometimes" came from for you.
Look at the pattern and consider the five volume signals: P, T, P, T, P. Steps 1 and 2 handles the last P only. That is the next faster fractal was "completing".
The LTL is where peaks occur or where VE's occur or soon a peak will occur. So increasing volume is a context for coming to an ltl , going through an ltl and completing a faster fractal pattern.
3. If the volume is peaking at less than the max volume from pt 1 to pt 2 and the volume difference going from the minimum trough @ pt 3 then the trading fractal has also completed its pattern concurrently with the nest faster fractal.
So now you have context and 3 steps for consideration. We now look at the players and who is whom. Spyder has emphasized interbar gausian shifts and they are named IBGS. Here the intrabar context is examined.
As you saw, the zone was examined and you know that you know the prior bar WAS NOT IN THAT ZONE for the first VE occurance. What about when price is operating to make another VE or price is staying in the zone for more than one bar. Look to volume more closely and look at either side of the market: the dominant or the non dominant. You will be surprised, I believe. The "tells" are in how each side is behaving and just who is in the majority and minority.
This is tough to deal with at first but soon the intellect takes charge and "sometimes" goes away simply because you are in one or the other branch of a tree. I am taking you there to the branches so you can then, through experience, take the correct branch on each occasion of branching.
4. If the faster fractal did not complete, then you have to deal with a non dominant leg followed by a dominant leg to get to completion.
5. Toss in a bookmark at the extreme of the VE and watch volume and price work.
6. If you have 4. in play then treat the VE as a new point 2 and the FTT of M1 as the new point 3.
7. Your reversal on the extreme of the VE let you go through the IBGS, if any, on the correct side of the market. A IBGS is a good piece in terms of WMCN to complete a nondominant leg. In point to point trading, you trade M1 and M2. In FTT to FTT trading you sit through M1 and M2 to get the two legs of the faster fractal completed.
In this point I am asking you to get sharpe on volume and how it leads price. I am also asking you to get sharpe on the relative nature of either non dominant or dominant volume.
What you are reading is me going to where you are and opening door after door for you to begin to look through. As you do, you are satisfying a NEED that your mind has notified you that the NEED exists.
So several new pieces, for you, have appeared. you mind is calling each piece a "what". all of these "whats" have places to go to in your mind. They are goi9ng to "where" they want to reside. They will make friends with the pieces already there. They will begin to fit into your already orderly mind. All this collection of pieces is forming a spectrum all orderly according to the work the pieces do for you. The spectrum is called "differentiation".
You have accomplished a lot. Your mind is asking for more pieces so "sometimes" goes away and more "consistency" results from having a tree of paths that contain all the orders of events that can occur according to the system of MADA, the pattern and the interconnections of the nested fractals.
As all these "whats" find "where" the mind will be keeping them, you will notice there is an assembly line going on to build your mind into a differentiated organization. You are, thus, approaching unconscious competence.
Coherence, which you have, is a requirement for building the mind. In contrast, betting, prediction and money and risk management, are incoherent and the mind does not get built. All it does instead is the OODA loop of being like a fighter pilot in a death struggle.
Congratulations.
Jack..appreciate your continued efforts to educate on this methodology.
re: point number 3 highlighted in bold above.
If by using the P and T comparisons you refer to, in order to determine the completion, or not, of all fractals,
I'm failing to see the point of referring to and relevance of, any VE and the VE "zone"at all ?
It seems, from what you say in point number 3, that we will be able to determine completion of all fractals, via the P to T criteria, whether or not we have a VE?
Appreciate feedback from anyone if and how I am miss-understanding this.
thx
Quote from FilterTip:
Jack..appreciate your continued efforts to educate on this methodology.
re: point number 3 highlighted in bold above.
If by using the P and T comparisons you refer to, in order to determine the completion, or not, of all fractals,
I'm failing to see the point of referring to and relevance of, any VE and the VE "zone"at all ?
It seems, from what you say in point number 3, that we will be able to determine completion of all fractals, via the P to T criteria, whether or not we have a VE?
Appreciate feedback from anyone if and how I am miss-understanding this.
thx
My orientation is a finite maths orientation.
The parallelogram emerges and is the basic geometric building block construct.
Just as in a bar by bar, analysis emminantes from the 10 cases of adjacent bars, a person must look at all of the cases that involve how a parallelogram is first created, then maintained.
There is also the notion that it is always true that parallelograms overlap.
Jem recently commented on his misunderstanding of my commentary in ET. Read it, please.
Determine that you are not overpowered by parallelograms, their construction, have they maintain themselves and how they overlap. this is late grammar school or junior high or the mid forms of the foreign schooling designations.
Three points determine a parallelogram. Crosing it one way is dominant crossing it the other way is non dominant.
To examine this a person must change his orientation from up/down to left/right.
A VE is a sign of more dominant right to left strength.
Regarding symmetry, a fan is a sign of less non dominant left to right strength.
A parallelogram can linger longer as well by continuing to trend within the parallelogram.
A trader's job is to "know that he knows.
Mandelbrot introduced fractals and they apply to human behavior and thus, in turn, to trading.
As a person trades a parallelogram , he also has the ability to "look inside" this parallelogram and see that faster parallelograms exist for each traverse of the slower parallelogram.
COMPLETION is a term used to describe a parallelogram completing its existance and yet another similar parallelogram beginning to take its place.
For trading this time of transition is where simple profit taking happens and simple taking on another trade begins. It is when "sentiment" changes.
Dominance is a combo of sentiment and the strength of movements. Each have measures and they are logged.
A VE is dominance CONTINUING. it comes to an end BUT it is not the completion of the parallelogram. This is figures out by deduction once and using the deduction over and over in trading.
Trend monitoring and analysis creates a strategy for trading. It is not done inductively but instead deduction is involved. Two geometries are combined to do this. One for volume and one for price. Coordinates in geometry are usually tow linerar sapce dimensions. In trading time replaces one of those dimensions.
It is difficult to ask a person to lay out all the cases of both the priceand volume geometires and then make the connection for all the cases. This finite math seems to overpower the mind of most.
when one is not overpowered and can follow the market in terms of the asortment of possibilities, it turns out they follow an oredr of events.
Events all have three parts as clarified by behavioral finance: pre event, event, post event. Time of event becomes an exacting science as a consequence.
When I explain all of these matters, the usual result is a period of judgement by others and they reach the conclusion they are right.
They choose to be "right" rather than rich. Being a meiocre thinking non ewalthy person is the lot of these judgemental decision makers.
The alternative is to "work". Work is attaining an organized long term memory. The value of an organized long term memory is that it will "summon at the correct time", the other part of what is being seen at any time to add up to PERCEPTION.
REREAD JEM'S POST. His even more classic comment is that he "see's" the market "gyrate". When he see's market activity, it fits into his glossary category called "gyrations".
Here in this post the focus is on a VE of an established parallelogram that has a knon faster parallelogram forming the VE. It is also known that the trader is looking for the precise ending of the slower parallelogram by using the faster parallelogram reaching its own completion.
Both parallelograms are in dominant moves. Dominant moves are measured by two variables: sentiment and INCREASING MOVES IN THE MARKET VARIABLES. In time (which is one of the coordinants of each geometry), this context grinds to an end point (THE event) and after that an entirely different context appears.
Your mind must match the pre event, the event, and the post event with sippets from your long term memory. Before this will continue to happen for you, you have to "work". More and more you will discover what work is. It is building your mind so there IS long term memory available to you when it is needed.
There is a giant myth about work. Mythically it is believed that a person spends 10,000 hours doing something and then the mind helps him to trade.
What happens if a person sits down at a table and uses printer paper to draw sketches of how parallelograms work and how VE's and fans change the parallelogram. What if he sits there at that table for another few minutes to an hour and draws the way the faster fractal uses parallelograms to form VE's and fans. What if he looks at what it takes to end the faster parallelograms?
If he does this and he watches the market with this in mind, then 10,000 hours becomes a few days of successful carving turns on the beginnings and ends of dominant trends. Your logs will show how your mind gave you the trems to write in each column of your log.
Make a log and write "gyration" on each line for five years and see where it gets you. You will be a gem.