you talk about stock trade 11 ->28 and also following 5 min bars. Presume 5 min granularity are for intraday trading and you used daily bar granularity for above stock trade ... But use same mapping table for shortterm & swing trading ? now you mention this stuff, I realised that I am currently in process of mapping. but have not worried about volume at all. my mapping is slow as I play swing trades only and follow relatively few markets. makes lots of sense as volume tells about sentiment at the time. stupid to omit available objective evidence.
This is the swing (position) trading one pager. One lookup table and five simple rules. The Universe is selectd by using a seven part filter.
the seven parts of the filter are: 1. float range, 2. PVT price range 3. Volume minimum criteria. 4. Institutional holdings 5. EPS 6. RS 7. All US stocks. In TN they are public info in criteria as far as I know. the filter is a "PVT" filter and all the math is assembled so that one click gets the Universe. It is all explained in "Putting the Pieces Together". ET has no way of allowing me to post this but some people here know how to get it to you. I adjust the RS and EPS percentiles to get the list the correct length (just over 100 stocks). Thus the stocks all look alike and exhibit the same behavior. a beginner example is thre months with 62 trades and on 25K an ROI of 150; by the next month the ROI goes to 250 because of learning curve. anyone can trade stocks successful using about 15 minutes a day in the evening after hours. This PVT type trading is all channel based from 1957. The PC makes everything quite easy on a 30 minute chart for stocks.
Found "The Documents by Jack Hershey " where seem to be doc you mentioned & more. Will have a thorough read as all seem in pretty good order Thanks for number of leads. I am happy (internalised) with my building blocks but don't have it structured yet ... that is where I am looking for ideas and is the stage where I am as a trader.
Not too many channels in a "Channels" thread, yet. Enclosed is the beginning of the day for the NQ. I chose it because I see some guys in another thread drawing interesting lines, sometimes channels. Do we agree on how a channel needs to be constructed? I chose a Point 1 on that chart. So we need another point 2 and three. Once we have point 3 we can clone the trend line which goes from point one to point three and place it on top of point 2. Is this the best way to create channels? Why? Why not? I already drew some possible right trend lines (the line which goes from point 1 to point three in Jack Hershey's world). Which one(s) is correct? Did I miss one? Do you see any fractals (=small channels/containers building a larger channel/container)?
Hi FF: You are inventing again. Have fun. One of the features of channels is their powerful signals. The market chooses point 1; thus, the trader does NOT choose point 1. The contract you have with the market states who does what. Reread you contract. Channel begin according to rules. you are not using the channel drawing rules. A lot of potential traders begin by inventing stuff. as has been suggested this is a tough row to hoe. So you are stepping right out and doing your inventing instead of following the tride and true rules. By not following the rules, you create stuff in your long term memory. Once you put it in there and it sticks, you get the consequences. A fulll range of people attempt to become traders. Some fail, some succeed. It is my opinion that potential traders who do not follow valid rules for doing things; they usually fail. you made the same mistake in your prior chart post. I didn't comment because it is so time consuming to try to convey to another person his mistakes and how to correct them. If a person creates a habitual mistake, then it is even tougher to correct the mistake. I have suggested for about 56 years that channels begin on a point 1. would you consider beginning your channels on a point 1 for a change? To do channels you have no other choice. Inventing stuff is not a good choice since all inventiions have to be proven in. the stuff you keep inventing cannot be proven in ever. think about these comments. If you reread my comments see if you can hi lite the comment that has been stating: all channels begin on a point 1. then you look up the definition of a point 1. then you always, without exception begin a channel on point 1. You, at this point, are NOT beginning channels on point 1.
Interesting! How do you know that the first bar in that chart is NOT a "POINT 1"? You intentionally said POINT 1 and not P1. How would a trader know that the bar he chose is not a point 1? At what bar would he have noticed it and how? So the top of bar one is not even a point 1 in ANY fractal? And on that chart there is NO observable point 2 and 3 in ANY fractal? I intentionally left out all SCT v3 stuff (bands, PP's, etc.). Volume is still on the chart but I could have removed it, too. Maybe it could be useful. I also intentionally removed anything that happened the day before. I will come back to SCT v3 another time. I promise. Here I only wanted to stimulate some more discussion about channels and see the different point of views. Seems like you are the only one who uses them. OK... let's see another example... Is the first bar in the attached chart a POINT 1 of a channel or does it start somewhere else? The same questions above would apply here as well. Thanks!
I usually just exit when price reaches the left side of the trend channel. In regards to Volatility Expansions, how does one know to hold through the VE or if it is just going hit the left trend line and retrace back to the right trend line? let me guess...volume... Also, what are the other leading indicators of price besides volume.
For overall market, I use New Highs/New Lows. I like using stock screeners and going back up to three years, looking for opportunities where stock moving between say $10-$30 then you have an idea of how low is low and high, but that is not to say price will forever stay in the channel, have to be ready when it breakouts. A number of methods to exploit, buying bottom/selling short high in channel, covered calls/puts, credit spreads or buying calls/puts.
So Handle... while you are here... how would you draw channels in general and in the examples above specifically? How would you know that a (channel) segment ended? I mean how would you know when/where to exit or even reverse trade direction?