A couple of things. I don't have an annotated chart and as of right now don't know how to capture and attach one if I did. I have been following along and taking pieces of your method and seeing if they can be applied to what I am doing now or improve upon what I am doing now. I have found some good synergy between what I look at and what you have been teaching. They are compliementing each other.
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The Stochastic Indicator
- Thread starter jack hershey
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A couple of things. I don't have an annotated chart and as of right now don't know how to capture and attach one if I did. I have been following along and taking pieces of your method and seeing if they can be applied to what I am doing now or improve upon what I am doing now. I have found some good synergy between what I look at and what you have been teaching. They are compliementing each other.
Quote from cornholetrading:
A couple of things. I don't have an annotated chart and as of right now don't know how to capture and attach one if I did. I have been following along and taking pieces of your method and seeing if they can be applied to what I am doing now or improve upon what I am doing now. I have found some good synergy between what I look at and what you have been teaching. They are compliementing each other.
Okay here is one for NQ.
Look at the two pennants. They are centering examples.
In ES we have lateral channels that do congestion (a parallel lateral channel), then convergence (a thruncated cone of price bars0, then the pennant for centering.
Volume keeps shrinking through this. That is the set up for P, V.
I do not know your indicators so....
For the attachment i put in stuff for indicators. They go to neutral (MACD) or 50% STOC).
To make money is easy it turns out. There are three levels of ease.
1. No prep and high risk
2. some prep and risk
3. no risk bracket entry.
On a bracket you do off set from centering value. The offset is determined by adding stop log offset and scalp. You avoid failure to BO event. You go in after the failure to BO is over and the actual real BO occurs.
Other approaches. If you are an expert you look for the VDU; see the carrots (V's). When they occur you jump on the BO from the VDU bar. The entry is market and is usually close to the BO on prior bar. It you get into a failure to BO, as an intermediate or expert you simply wash out. If you are able to slalom, and it is a failure to BO, then you slalom by immediate reversal (tack into the trend) and take it from there.
The centering BO is a sure money maker but you have to have skills. You can see about 7 trades of 2 1/2 on this chart today. that's 17 plus NQ points on a capitalization of under 2000 bucks. If you watch nq you see a lot of folk run with 5 contracts. 87 1/2 ppoints a day is how it goes using BO's from centering coming off the neutral or the 50%. I pointed out the midday trades which are the hardest.
You need to be equipped to monitor for making money. after than it is a good idea to annotate a little to keep focussed.
Attachments
missed the morning had to bring car to get fixed. tried to push things and wound up basically flat on the day.
1. rocket end--->macd xo reversal
1:05 macd xo after a rocket. short @ 855.00. mkt flat lines and i exited @ 856.50 with volume drying up and drifting upwards.
short @ 855.00 1:05
cover @ 856.25 1:30
day: -1.25 11 days: 29.25
2. rocket end--->macd xo reversal
1:55 had good stoch for rocket, but macd never kicked in so i did not enter the long rocket, but was looking for a reversal if it appeared. 2:15 macd xo and stoch left long zone, but still within trend channel so i waited. 2:35 broke my trend channel and short was taken @ 858.00. turns into a short rocket at 3:00. 3:15 and 3:20 lower volume counter trend bars and 3:25 DURING the bar it broke my trend line, stoch left zone and macd xo and i exited @ 857.50. The bar continued and mkt reversed and those exit signals disappeared. Too quick on the tigger finger.
short @ 858.00 2:35
cover @ 857.50 3:25 +.50
day: -0.75 11 days: +29.75
3. rocket end--->macd xo reversal
rocket ends, macd xo and channel break at 3:40. Long @ 856.50 held until close exit @ 857.75.
day: +0.50 11 days: +31.00
1. rocket end--->macd xo reversal
1:05 macd xo after a rocket. short @ 855.00. mkt flat lines and i exited @ 856.50 with volume drying up and drifting upwards.
short @ 855.00 1:05
cover @ 856.25 1:30
day: -1.25 11 days: 29.25
2. rocket end--->macd xo reversal
1:55 had good stoch for rocket, but macd never kicked in so i did not enter the long rocket, but was looking for a reversal if it appeared. 2:15 macd xo and stoch left long zone, but still within trend channel so i waited. 2:35 broke my trend channel and short was taken @ 858.00. turns into a short rocket at 3:00. 3:15 and 3:20 lower volume counter trend bars and 3:25 DURING the bar it broke my trend line, stoch left zone and macd xo and i exited @ 857.50. The bar continued and mkt reversed and those exit signals disappeared. Too quick on the tigger finger.
short @ 858.00 2:35
cover @ 857.50 3:25 +.50
day: -0.75 11 days: +29.75
3. rocket end--->macd xo reversal
rocket ends, macd xo and channel break at 3:40. Long @ 856.50 held until close exit @ 857.75.
day: +0.50 11 days: +31.00
Attachments
I show how to keep decisions mechanical on point 3. No flaws dricve this.
By letting beginners do rockets and also keep in channel trades we can pick up a few.
The experts and intermediates can do pennant BO's according to their risk level too. I showed a NQ for this. NQ is smoother than ES and knocks down money all along the way also.
Look for those VDU's daily. You will usually see the bar is an inside bar. Note it well. Use the inside bar top and bottom for a trigger to enter at market going the way the BO is happening. as you see the volume hitting 3 to 4 times VDU, you get comfortable with the idea that there will not be a "failure to BO". If there is we tack with a reverse, take the nickel and run with the reversal.
I do acrobatics with a glider. While you do not have 5G's hitting you, you by now are getting the drift that we can really nail this stuff without any complexity really creeping in here.
How hard is it to "see" volume shutting down and an inside bar. It cannot continue; this is our first "short lived phenomena" If your gliding and you have the energy, you can go with anything. You will hit all kinds of air as you do stuff. You just temper the moves accordingly. Just don't fly below the altitude of the ground.
By letting beginners do rockets and also keep in channel trades we can pick up a few.
The experts and intermediates can do pennant BO's according to their risk level too. I showed a NQ for this. NQ is smoother than ES and knocks down money all along the way also.
Look for those VDU's daily. You will usually see the bar is an inside bar. Note it well. Use the inside bar top and bottom for a trigger to enter at market going the way the BO is happening. as you see the volume hitting 3 to 4 times VDU, you get comfortable with the idea that there will not be a "failure to BO". If there is we tack with a reverse, take the nickel and run with the reversal.
I do acrobatics with a glider. While you do not have 5G's hitting you, you by now are getting the drift that we can really nail this stuff without any complexity really creeping in here.
How hard is it to "see" volume shutting down and an inside bar. It cannot continue; this is our first "short lived phenomena" If your gliding and you have the energy, you can go with anything. You will hit all kinds of air as you do stuff. You just temper the moves accordingly. Just don't fly below the altitude of the ground.
Jack,
The stuff about VDU BO/reversal on failure is great, thanks. And so is the moving of point 3 if there are no flaws - I've done it a few times and I was wondering it agrees with the methodology. And so is the money velocity. Can't wait to see it all put together in that journal.
I have a few questions:
1. the entry on VDU BO apply to all market periods or just to the DU? My understanding is that you use it whenever it occurs after a centering, outside of a rocket or iceberg - am I correct?
I've marked the other VDU-BO on the NQ chart in green - did I get it right?
2. what are your VDU, DU, BO and unsustainable volume levels for NQ?
3. Today I started to keep a stop log while I was in the trades. I reread your posts from pages 79-81 of the thread but it's still unclear to me, say in a short trade, whether:
- you record the highs of every 1-min bar and then as it retraces you erase the ones that were taken out, or if
-you only record the highs made after a retracement.
Then, my understanding is that you use the stops only in slow trend trades. Or do they apply to rockets as well?
4. today's ES chart - on the last channel, I noticed that you didn't move the point 3 to the high of 13:25 bar - can you please explain? Also, on the intermediate iceberg trade, the channel is broken at 14:35 yet you stay in till 15:50 when stoch shows up on 20 tape.
Thanks in advance.
vorzo
The stuff about VDU BO/reversal on failure is great, thanks. And so is the moving of point 3 if there are no flaws - I've done it a few times and I was wondering it agrees with the methodology. And so is the money velocity. Can't wait to see it all put together in that journal.
I have a few questions:
1. the entry on VDU BO apply to all market periods or just to the DU? My understanding is that you use it whenever it occurs after a centering, outside of a rocket or iceberg - am I correct?
I've marked the other VDU-BO on the NQ chart in green - did I get it right?
2. what are your VDU, DU, BO and unsustainable volume levels for NQ?
3. Today I started to keep a stop log while I was in the trades. I reread your posts from pages 79-81 of the thread but it's still unclear to me, say in a short trade, whether:
- you record the highs of every 1-min bar and then as it retraces you erase the ones that were taken out, or if
-you only record the highs made after a retracement.
Then, my understanding is that you use the stops only in slow trend trades. Or do they apply to rockets as well?
4. today's ES chart - on the last channel, I noticed that you didn't move the point 3 to the high of 13:25 bar - can you please explain? Also, on the intermediate iceberg trade, the channel is broken at 14:35 yet you stay in till 15:50 when stoch shows up on 20 tape.
Thanks in advance.
vorzo
Attachments
I can see some points of confusion. As you have guessed I do the charts continually.
There were exits on each channel. See blue line 14:30 and see green line 15:40.
There were exits on each channel. See blue line 14:30 and see green line 15:40.
Quote from vorzo:
Jack,
The stuff about VDU BO/reversal on failure is great, thanks. And so is the moving of point 3 if there are no flaws - I've done it a few times and I was wondering it agrees with the methodology. And so is the money velocity. Can't wait to see it all put together in that journal.
I have a few questions:
1. the entry on VDU BO apply to all market periods or just to the DU? My understanding is that you use it whenever it occurs after a centering, outside of a rocket or iceberg - am I correct?
I've marked the other VDU-BO on the NQ chart in green - did I get it right?
****See attachment
2. what are your VDU, DU, BO and unsustainable volume levels for NQ?
*****See attachment. You can do it as a rolling thing. Dawg posts talk about how days are different vis a vis volume.
3. Today I started to keep a stop log while I was in the trades. I reread your posts from pages 79-81 of the thread but it's still unclear to me, say in a short trade, whether:
- you record the highs of every 1-min bar and then as it retraces you erase the ones that were taken out, or if
-you only record the highs made after a retracement.
Then, my understanding is that you use the stops only in slow trend trades. Or do they apply to rockets as well?
******Use a stop log all the time. We will be getting in the groove on price formations for a variety of market paces. This does not make things difficult nor complex. All of this is on the level of learning to drive a car which is a lethal weapon at times.
4. today's ES chart - on the last channel, I noticed that you didn't move the point 3 to the high of 13:25 bar - can you please explain?
****I do not understand this comment. There is a thin blue line on bottom of point 3 bar.
Also, on the intermediate iceberg trade, the channel is broken at 14:35 yet you stay in till 15:50 when stoch shows up on 20 tape.
** See blue then green line. We did two exits.
Thanks in advance.
vorzo
Attachments
Have we put in enough time to see that the last traverse in a trend is a flaw.
The last traverse doesn't make it to the left trend line.
I call this a "failure to traverse."
Failures to BO are getting to be understood. They happen, in trends, to be considered with regard to the right line. Another occurence is at the end of a lateral trend which is composed of a congestion, convergence and centering. Price formations also give us BO's as they end. Use the formation end point signal and take it as an opportunity for a BO. Our commonest one's are Pennants (flags) and they have propesities to go in specific directions.
Everything needs a sustained volume to succeed as a BO.
"Failures" do not have the "push" that is why they fail.
When a trend is coming to an end, we look at the traverse going along as it accumulates more profits. We notice that the stop log poops out vis a vis entries. you also notice that the "traverse fails".
This is an early warning system. As you wish, you go to a more confident orientation (this may be considered riskier at first). You do this be moving your decision point on sequences to earlier signals than you currently use.
If you are composing sequences that are getting filled out on several levels and are multi indicator based, (Here I am chatting about how people take their existing approaches and compliment them with additional stuff) you get to a point where they are comprehensive. Then you can adjust your performance (money velocity) to continually enhance it.
This is a measure of how chicken you are. Saftey comes in several forms. NLP are very safe because they are familiar. But familiarity comes from experience and surviving.
You can read posts here by people. Some are classic in how they exhibit "staying in a safe place" as caused by the experience of "fear" in other places.*
I am building sequences of signals for you. As you experience success, you "see" possibilites; I try to put these possibilities next door to your successes.
I know some of you see the humor in my posts finally.
I am recommending here that as you collateralize your methodology with this stuff. always be considering moving your decision points to more profitable places to operate.
Today I am focussing on the profit level shifting from rocket to trend following to using "leading" signals. Leading signals are such that it appears you are "trading" a trend by leading the trend. We will always work to be "pushed".
Consider every "failure to traverse" as point 1. Do a reverse at point 1. This extents the current trend to the max and putss you in the next trend. If you find the next trend to be congestion then "slalom" it by just setting up the lateral channel congestion and swing trade it on the 1 min bars.
* The trader Fader "fear" of day trading versus interday is the funniest. Bob and Cathy fears vary with losses incured; they go all the way to "freezing" even though they are "guru" based.
The last traverse doesn't make it to the left trend line.
I call this a "failure to traverse."
Failures to BO are getting to be understood. They happen, in trends, to be considered with regard to the right line. Another occurence is at the end of a lateral trend which is composed of a congestion, convergence and centering. Price formations also give us BO's as they end. Use the formation end point signal and take it as an opportunity for a BO. Our commonest one's are Pennants (flags) and they have propesities to go in specific directions.
Everything needs a sustained volume to succeed as a BO.
"Failures" do not have the "push" that is why they fail.
When a trend is coming to an end, we look at the traverse going along as it accumulates more profits. We notice that the stop log poops out vis a vis entries. you also notice that the "traverse fails".
This is an early warning system. As you wish, you go to a more confident orientation (this may be considered riskier at first). You do this be moving your decision point on sequences to earlier signals than you currently use.
If you are composing sequences that are getting filled out on several levels and are multi indicator based, (Here I am chatting about how people take their existing approaches and compliment them with additional stuff) you get to a point where they are comprehensive. Then you can adjust your performance (money velocity) to continually enhance it.
This is a measure of how chicken you are. Saftey comes in several forms. NLP are very safe because they are familiar. But familiarity comes from experience and surviving.
You can read posts here by people. Some are classic in how they exhibit "staying in a safe place" as caused by the experience of "fear" in other places.*
I am building sequences of signals for you. As you experience success, you "see" possibilites; I try to put these possibilities next door to your successes.
I know some of you see the humor in my posts finally.
I am recommending here that as you collateralize your methodology with this stuff. always be considering moving your decision points to more profitable places to operate.
Today I am focussing on the profit level shifting from rocket to trend following to using "leading" signals. Leading signals are such that it appears you are "trading" a trend by leading the trend. We will always work to be "pushed".
Consider every "failure to traverse" as point 1. Do a reverse at point 1. This extents the current trend to the max and putss you in the next trend. If you find the next trend to be congestion then "slalom" it by just setting up the lateral channel congestion and swing trade it on the 1 min bars.
* The trader Fader "fear" of day trading versus interday is the funniest. Bob and Cathy fears vary with losses incured; they go all the way to "freezing" even though they are "guru" based.
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