Spydie, if you had as many people in your head as I do, you would know that I am well aware of the possibilites the market offers. In a few years Jack, bless his black little heart, will have exhausted his SCT schtick, and I will reveal to an astonished ET what I have been up to. I shall be seeking accolytes, and ye shall be my first convert. Jack's problem as a trader is that he is but one man, whereas "We are Legion".
I have a question that any debate should address: How many SCT traders are sure that they're doing SCT as conceived by Jack? If they think that they are, can they describe SCT in their own words? His writings are so unclear that they're like a Rorschach test: they express whatever the reader happens to project into them. Isn't it likely that many people claiming to do SCT are actually doing something else?
AM1, trade well, my bastard son. The misfortunate necessity to work for a living takes me away from ET for a few weeks. When I return, I shall look you up, and get you to re-educate your old dad.
The ET Community appears to have attributed the 'Cabana Boy' title to you trader28. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1439701>
I hope your assumptions when trading are better... but then again seeing as you have never provided your P/L... perhaps not But at least you have a job running Jacks journal while you continue the struggle to become profitable
it seems to me that for a new trader learning SCT or PVT is an absolutely invaluable tool given that: 1) its non-reliance on indicators. Most traders always think there is a magic indicator. SCT and PVT forces them to look at price and volume action. 2) screen time. SCT forces a trader to look at charts, draw in trendlines, S/R look at volume. ALL the essential aspects of TA that people usually overlook. id say that SCT fast tracks a traders development because of these two factors help a trader develop a feel for the market that they are trading. from what ive seen of SCT it is really consisted of simple normal CO concepts. L-R traverse: usually a pennant or a flag. can also take the form of a triangle. FTT: Double top or 2B (as per victor sperandeo). The spiking of volume as it breaks out of the channel to be expected of a normal BO of S/R in CO. stalls, HVS and CCC: rectangles/pennants. As you can see they are simply technical concepts put in a framework. They are not "new" or 'radical" as jack would have you believe. It is really CO in a framework. As with most technical analysis it is extremely subjective. There are technical analysts who could make a killing anytime on anychart, and there are technical analysts who couldnt make enough money to buy a croissant from the local bakery. I have traded SCT for a little while, and i would say that my performace closely mirrors that of the time when i traded discretionary using "classical" TA. Hershey's method has a emphasis on FTTS, Most FTTs will result in a BO of support in which case a TA would signal an entry. SCT may get u in a few bars earlier. HOlding during L-R retraces is no different to holding during a pennant or flag. Holding during CCC or HVS is no different to holding on when a triangle or consolidation rectangle occurs. SCT is CO in different clothes
Yes! I agree with all of this. Where do you get the idea that Jack says the concepts are new or radical? He cites the original sources repeatedly. Is this conventional wisdom at work? Think for yourself and DYOR. It's not a few bars earlier that is important (although point 1's are the target) - it's getting in ON the new TL - if the trend continues you will never take a loss. And you know it, at the time. If you wait until the BO has occurred your entry is likely to suffer a retrace. Retraces do not go beyond Point 1, by definition. No drawdowns, ever. You misunderstand what Jack means by CO. You have focused on aspects of TA in isolation. CO encompasses R/R, stops, money management, edges, drawdowns, expectancy, fear and anger etc... all the things that turn trading into a game of chance and uncertainty. SCT takes the trader to a place of support, comfort and confidence (even if you aren't "always in" or making 3x the range, as the detractors fixate on).