By logging events on three fractals and also logging the "order of events" on as many other things that have orders of events, you get to have a log with many many pages a day. The rows of the log are filled in one after another and a new row is added if there is a change in any item in the prior row. This is a matter of having perspective. By comparing rows you see many orders of events unfolding and you know you know the order of events in each column. In BF terms this leads to complete mental differentiation in very little time. How does BF's A dissapear as a consequence? How does BF's failings per BF B dissapear? How does BF's D dissapear? You find out by taking the trip to expertise. you are in the market all the time. You are on the correct side of the market all of the time. You are taking the total offer of the market segment by segment as ditated by the market duting RTH using EMH.
I doubled down on this chart so observers could see how the third point could fit into the order of events. Both a retrace and reversal are showing and the logging tells which is which from the chart 1 onward. So this means at any time a trader always knows he knows. The Franca lingua of the logs is a shorthand for all the columns expressing the various orders of events in each of those columns. The rows get filled in and the whole matrix morphs into always "knowing that you know. Glance at the P&L thread and discover no one is able to know that they know all of the time. examine how little time the traders are actually in the market compared to the sideline time. What is the emotional context for all of these people? It is anxiety, fear and anger. Now it is getting clearer from BF that the mind cannot be over written and first recourse beliefs that are erroneous are just, effectively, erased. Tough Situation. Too Bad.
Footnote Chart 3 part A shows the Dunnigan "trap" trade Chart 3 part B shows the Dunnigan continuation trade on the next slower fractal relative to chart 3 part A. How did Dunnigan differentiate the trap from the continuation? Why can't those people who usurped the market's perogative of dictating "nesting" get what Dunnigan did? Imagine all of this as a junior highschool class where the kids plotted their own charts in the 1960's. they did have a full S&P brokerage support service provided free (daily) from the Eastern US S&P manager located in NYC.
If a person is looking at P, V and sees events and is able to reason, how does the person get to an established technique? Qwelling "jumping" fractals is not the first thing that happens as traders go from observers to experts. Trend monitoring and analysis comes down to monitoring the observable and from that you can make decisions and take timely action. This is a shift from OODA to something else and what happens to make this shift is to turn to a language that the market dictates. It is NOT the ten patterns examined by A. Lo after "averaging the noise out". Certainly knowing how to handle climax runs and BO's of FBP's is nifty and usually after the fact. How can a person who is probaility oriented and doing entry/exit trading move from the CW and get to a BF orientation free of the BF problems that define most traders? I do not think it is possible, ordinarily. Apparently for most people, the mind gets its first recourse inference as a consequence of bad decision making roughly in a vacuum that is 10,000 hours long. The natural outcome of trading is failure and the usual emotions along the way are anxiety, fear and anger.
I summarize the trader as BE DO HAVE. The Be is BF's C. BE reasonable. I lucked out. the Navy applied to college for me. I worked my way through and cut back on eating while in college. Reasoning was what I learned indirectly. DO is reasoning with the market dictates. Cases. Granularity. Logic theory and paradigm theory. Inference emerges from DO'ing the pieces. Few will get this. HAVE is what a person gets as he becomes fully differentiated. All sensing is match flawlessly with the appropriate piece of the fully differentiated inference. There is always context for the order of events. People are small and markets are huge. This is the equation for freedom. The smaller you are the more you get to reject the opportunity of the markets. BF did not deal with personal creativity (refinement instead) but it does deal with the foibles of BE DO HAVE in people in the context of events and the "tells" of events regarding the order of events. There was some mistake about relating to "timing" and what is actually done. Time is on clocks and NOT in markets.
Hi Jack, Has your recent expertise in trading allowed you to help pay the mortgage on your girlfriend' home where you live? Just askin......
It would be the great idea for those who have problems with identification continuation or reversal to use delayed quotes, at least 20-30 min
As suggested by BF, if you put up so many events you begin to see cycling. events are nodes and nodes can be connected with links. the node and link cycling is too complex for most traders to reason through. In a p, v chart it takes 6 nodes to begin a new cycle. correspondingly, there are 8 volume nodes. N-1 can be used to determine the links to nodes where N is nodes and N-1 is links. What emeges is a foreign language to the public which is a CW context. What I enjoyed for 53 years was using events in P and V to bound the market on interlocked fractals as determined by "nesting"of fractals. This systemic approach or technique is denied most people by their decision making process. Events determine parallelograms and the parallelograms overlap. The simple consequence is that a trader is free of any BF shortcomings and he operates precisely in the BF B domain free of the BF B shortcomings. The conclusion that smart traders exploit the anomalies of EMH is more than just true. the optimization of effectiveness and efficiency allows the trader to take all of the market's offer. this is, in CW terms, unbelievable, astonishing and a lot of other disparaging erroneous commentary. So everything turns out consequentially. No one of the CW persuasion is going to use anything they think is outside the box. they can't see the box either. Its performance, as measureed by CW, is not possible.