The skinny on tape reading and trading
- Thread starter Big Game Hunter
- Start date
Hi Jack,
If you have the time and inclination, would you mind expanding a little on what you meant by:
"As is easily seen in many threads, it is very difficult for a person who is differentiated vertically to become neutrallu biased. And it is much more easy for a a horizontally biased person to go through the 6 to 8 skill levels to become and expert trader."
Thanks,
TNG
If you have the time and inclination, would you mind expanding a little on what you meant by:
"As is easily seen in many threads, it is very difficult for a person who is differentiated vertically to become neutrallu biased. And it is much more easy for a a horizontally biased person to go through the 6 to 8 skill levels to become and expert trader."
Thanks,
TNG
Jack ... I have found that also applying reverberation analysis while sustaining vibrato that one can exceed the tape size factor by approximately seven.
Today will most likely be an easy day to trade and spot the turning points ... what does the SCT crystal ball tell you? You should easily grab 3x the market range today.
here is an example.
This is a vetically oriented person who did the indicated trades, sime profitable some losers.
He is dirrentiated in PA to see certain setups vertically and he does not see other "offers" from the market.
Follow along with me.
Do you see his orientation? Everyone probably does.
What would it take for him to see more of the market's offer?
The answer is related to the periods of time he was on the sidelines and WHY he was on the sidelines.
The net change in ES price yerterday was a little over 100 points.
A horizontally oriented person can see price change and market timing better than a vertically oriented person. Probably only horizontally oriented people can know this and vertically oriented people cannot know this.
Look at two general aspects of the markets.
The techniques used and the money made. All that most people are familiar with are vertically oriented strategies and approaches. I will spend a few posts (short ones) making some points and I need to illustrate them to keep it clear and straight forward.
The first point was the difficulties of the person whose chart this is. He missed making any money as a price action trader. You can see this EVERY day in the PA threads rhat come and go.
You and Charly "picked up" on the same thing. Ironfist could not "pick up" on it.
The three of you are differentiated differently in how you read. You and Charly are still open to the "idea" of both vertical and horizontal orientations. You may be thinking about becoming neutrally biased in order to not have a "long" or "short" preference. Ironfist drew a chart that won and lost money on trades; the only winning trades were "long" trades.
A vertical orientation most often has traders using entries followed by exits. Horizontally oriented traders trade using holds and reversals they DO NOT use entry and exit.
Let me make a second point.
Going through 8 skill levels takes a person to expert and trading is like driving a car. An expert trader "knows he knows" what to do at the next intersection. And there are no possible intersections where he doesnot know what to do, if he comes to such.
In expert trading, as in expert driving, a person does not get out of the vehicle periodically when he is going from the open to the close of the market.
Both the driver and the trader stay on the right side and both go with the flow slowing and accelerating as required.
Did you notice what happened mentally in reaching this reading point. You read along and knew you knew all the time.
You allowed your self to stay in the vehicle and the picture was a horizontal one for operating by going with the flow accelerating and decelerating. I am talking about the market and you are in the market and doing things with regard to flow of traffic which is connected to timing and drivng normally like all other drivers whom you see all about you.
An expert trader, trades in terms of the market's sequences whose occurance is based upon time.
I tried with iron fist to take him to a brief axperience in the horizontal on a beginner or advanced beginner level. He said, verically speaking, no thank you this is not possible.
He is highly differentiated in a vertical mode and cannot consider the market's sequences. He cam only consider zig zags as is true of PA, mean-reversion and all quant methods on Crays. We are seeing an era end in illiquidity where the presumed bail out (LOL) is in the range of buying oil for a year or the cost of operation the government for a year (LOL). NB Blackstone started hiring bankers today.
how does a person begin to learn to differentiate sequences (a horizontal time based viewpoint) if he is vertically oriented?
As I said in each post to ironfist, this is probably too difficult to accomplish. I have a long list of ignores, they are all vertically oriented and some are in OCD land by now.
Lets look at differentiation and its consequences.
The only way I could think of is in small steps, moving from entry and exits to entries and reverses in some cases, then to always in. However, my reality of this is that it's very, very hard to do. I've found as long as the range is wide enough, you can, but if the range is small (chop) you get crushed by doing exactly opposite of what is needed.
I'm looking forward to more on this, thanks!
TNG
Here is a box that is set up as to how the mind works.
It has a sensory input on the left and a functional input coming into the top.
Inside are "operators" which are places in the mind where sensort inputs and functions mix together to create results that are stored short term or occasionally long term.
In the lower right corner is a notation of how much input is process each brief lap. The preponderance is unconsciously processed.
Differentiation is in long term memory which is achieved by repetition. Think of reading. Shapes, spatial relationships of letter, words, their sounds and their meanings. It all woeks unconsciously for you.
You saw vertical and horizontal and charly saw the major clue "lateral". You both processed it and took a behavioral action related to wants and maybe even needs.
On the diagram are three words that form an equation:
Perception (100%) = Sensory (10%) + Inference (90%).
When you drive you use all that inference to "see" (Perceive) what is going on; you eyes and ear do contribute a little. You can small burning rubber and exhaust fumes and rain on soil or concrete. Driving over and over differentiates your mind and you "know that you know" in driving under any conditions and it is automatic. The sayng is: "Drive defensively".
A person, unmentored, we all know fails after a while. He was also vertically oriented to the rise and fall of price.
Take Bighog who thew away volume to make PA "pure". Take trader28 who used MACD on wrong defaults to lose in chop all the time by being whipsawed (this is a vertical term) until he quit SPM. These are verticaly dirfferentiate people.
Repetitions built their perception into long term memory INFERENCE for use on the next lap. In the chart, you see that the vertical trader cannot make money because he taught himself to follow the AHG pages 3 and 4 admonition: SIDELINE when you do not know what is going on.
If a trader learns to trade based on sequences in time, then he can go through 8 levels of skill building which are all based on sequences of the market in time. Sequences in time is a HORIZONTAL ORIENTATION. This is babble to 4 out of 5 poeple as poor polling shows over 50 years.
If a person gets built vertically, he is differentiated and has long term memory that either has to be dissolved or crowded out by neuroplasticity where building and putting in place new neurons occurs. Two opposite biochemistries are involved. the favored one (LTP) is going to persist in all probability. LTD is what is needed to change.
The next posts will show the horizontal path from assessor to advanced expert in terms of horizontal differentiation.
It has a sensory input on the left and a functional input coming into the top.
Inside are "operators" which are places in the mind where sensort inputs and functions mix together to create results that are stored short term or occasionally long term.
In the lower right corner is a notation of how much input is process each brief lap. The preponderance is unconsciously processed.
Differentiation is in long term memory which is achieved by repetition. Think of reading. Shapes, spatial relationships of letter, words, their sounds and their meanings. It all woeks unconsciously for you.
You saw vertical and horizontal and charly saw the major clue "lateral". You both processed it and took a behavioral action related to wants and maybe even needs.
On the diagram are three words that form an equation:
Perception (100%) = Sensory (10%) + Inference (90%).
When you drive you use all that inference to "see" (Perceive) what is going on; you eyes and ear do contribute a little. You can small burning rubber and exhaust fumes and rain on soil or concrete. Driving over and over differentiates your mind and you "know that you know" in driving under any conditions and it is automatic. The sayng is: "Drive defensively".
A person, unmentored, we all know fails after a while. He was also vertically oriented to the rise and fall of price.
Take Bighog who thew away volume to make PA "pure". Take trader28 who used MACD on wrong defaults to lose in chop all the time by being whipsawed (this is a vertical term) until he quit SPM. These are verticaly dirfferentiate people.
Repetitions built their perception into long term memory INFERENCE for use on the next lap. In the chart, you see that the vertical trader cannot make money because he taught himself to follow the AHG pages 3 and 4 admonition: SIDELINE when you do not know what is going on.
If a trader learns to trade based on sequences in time, then he can go through 8 levels of skill building which are all based on sequences of the market in time. Sequences in time is a HORIZONTAL ORIENTATION. This is babble to 4 out of 5 poeple as poor polling shows over 50 years.
If a person gets built vertically, he is differentiated and has long term memory that either has to be dissolved or crowded out by neuroplasticity where building and putting in place new neurons occurs. Two opposite biochemistries are involved. the favored one (LTP) is going to persist in all probability. LTD is what is needed to change.
The next posts will show the horizontal path from assessor to advanced expert in terms of horizontal differentiation.