Quote from Kedwards:
Jack Hershey,
appreciate the charts but, where exactly are the entries and exits? I look at the Price/Volume Relationship thread at TradersLab and no one ever posts an entry/exit??
Sorry about that. The people doing the work are using MADA and the pattern. So the timing of taking profit segments is set within the appropriate bar.
For example, I just posted and ALMOST said "GO LONG" since it was that moment in time.
To trade well, timing is a very important thing. The charts are annotated so that element is included in the trading routine. From your comment, I can now see that the purpose of doing the "bizarre" charts is not understood by anyone.
The exact times for the trades (we do not do entries or exits) is where the lines touch the bars. The lines are an after thought kind of thing that allow us to draw well into the future so we can see price fill up the containers as the future comes into the present.
When I was enumerating each of the 25 trades, yesterday, I went from after to during to before the trades as a transition to make a point.
For the bighog trading approach, I put an arrow to each of the six trades he missed. I also put the number of the bar in the text to be most explicit.
So if you were bighog waiting in the bushes like a lawyer to "catch" a BO, what you do is annotate the BO ahead of time. This is done using the rule: two points form a line segment, ray or line. Thus you have a line on the right side of price. You are in the market since the last line was crossed since that automatically puts you in the market on the right side.
You sit and make money and a maximum amount is there then you see price begin to move to the line you have drawn as less and less net is showing in your account. Since you are disciplined, as is bighog ,you watch and wait until price comes to the line and you follow the big hog rule of "trading BO's" by taking he net profit and entering as price moves away on increasing volume to the next RTL that will be broken to take profits.
In SCT trading we do not do that . We annotate the RTLs AND the moves within the RTL and LTL. You saw the thin blue lines that contain the three moves within the RTL and LTL's colored according to the BBT "trends".
All lines drawn thin to thick have four points associated with them. Three moves need four points. This at MBA school is called planting bean seeds in rows. There is one less space beteen bean plants that there are bean plants. N+1 describs the plants and N-1 describes the spaces. It is bizarre, of course.
Trends do two things in trading: Continue and fail. Drawing the lines tells a person which is going on. Bighog does neither. He is a lier in the bushes as he explains. My charts were explaining continue and fail. I failed to explain that well enough.
To make money you hold during continue and you take profit segments during fail. Fail is labelled accordingly as FTT. FTT means failure to traverse.
Trading from FTT to FTT is the most fun in the world. In five minutes you will know this approach and choose to use it since it makes so much money all day long.
For example, the long I didn't give the person who was bitching about my long informational posts done by dictating, just ended. He would have made 6 points on each of his 50 contracts for a net of 3 times ten to some power dollars. To do that myself I had to move my left mouse to a box and press it twice with enough seconds in between for my account to reverse. I used my inference with what I sensed to say "now is the time, the third move is done".
For you to "get it", you need to anotate all observable trends with RTL and LTL's. USE points 1, 2, and 3.
You look at the price which is inside these narrow thin lines. Every few bars the price fails to get from the right side to the left side. This means the trend is done. At the place where the failure occurs, you reverse your position. This is then labelled FTT. It is also where the opposite trend begins which you are now holding your position in on the new right side of the market.
There were 25 of these places yesterday. It was what is known as a 100,000 dollar day. Go to the P&L and see a few 100K blotters.
On my chart that showed all of yesterday, you can see the thin blue lines at each end of the chart. During the day the market was very rhythmic so I was just slaloming along seeing the three moves ending with FTT's. I put in medium lines at each of the thin line FTT's to keep organized since it was so "consistent" in performance. Bighog trades the BO's so I labelled them so he could see them from his bushy location. Each BO followed the medium line FTT's by a couple of bars. Look just before the BO's to see the RTL beginning with point 1 at the prior FTT. I do three times the trades as does Bighog and I front run him when he is entering.
If you look at the prior day on the overall chart, you see three thin blue containers that show long, short and long. Those are three trades. Call them 4, 2, and 2 points for your 50 contracts. That is 4 times 10 to some power dollars in profits during about 10 bars of trading.
You see the lines and you see the trends they represent. You see the three points to draw the lines and you see the FTT for each container.
What people do to begin to time the market is draw the thin blue lines. Two consecutve bars are used to draw a rtl in thin weight. Each gets to have an FTT. You use these FTT's to draw the medium weight lines. The FTT's of the medium weight containers are used to draw the thick lines that last a half a day or so.
The exact points of the trades are at the FTT places. There were 25 of these yesterday.
What it looks like on a blotter is several partial fills for each part of the reversals. A few printed pages worth of partial fills. Do you feel we should be putting up these pages? No one does it simply because we are doing the common work of MADA and using the same pattern over and over. Seeing the pattern is like driving a car. We all know driving a car is bizarre. When we drive by, we all see bighog in the bushes.
Drills consist of doing the work to annotate thoroughly. By doing 50 charts in detail your mind gets differentiated. At this point, you automatically know what is coming next. By always knowing that you know, you get to do the trades at the exact times FTT's are made. It is not boring since there are a lot of contracts involved and each little contract is doing its job. Your blotter is showing digits and they are multiplied by some power of ten each day.
Note: since volume leads price, you get to see the points and the FTT being reached well in advance (12 seconds into the pertinent bar).
