I noticed from your log that you misunderstood the pass/fail logic of the doji test. A Pass-Fail-Pass-Fail sequence is not possible. Either it moves through the open and it's Pass or by bar end it has failed to move through the open and it's Fail. You don't keep on running the test when the market is two-pairing like you did. Atleast this is how I understand the logic from the node sheet.
I would be glad if you are right and I misunderstood this. I will try to describe my "pass-fail-pass-fail" note: 1. Bar opens 2. Prices goes down 3. Price comes back to open (doji) 4. Price goes down again = fail. 5. Price goes back to open and then passes the doji (=pass) 6. Price continues a little bit higher (and volume is even increasing the whole time from the open) 7. Price goes back to open but then goes up again = fail 8. Price goes down back to open and this time passes doji = pass 9. Price returns to open and the either passes or fails This whole cycle happens multiple times maybe even within a few seconds. I don't even have time to write, to follow any flow chart or other things but only see: pass, fail, fail, pass, fail, pass, etc. After I'm seesawed to death from this sequence maybe even financially because I enter, reverse, reverse, reverse (if I'm fast enough to follow) then price finally continues in one direction (maybe even in the direction that I saw in the first few seconds). But I'm either already out or mentally burned at that point in time. Sheet 10 says that if this sequence happens more than once to get out. This should solve the seesaw issue but you will also miss a lot of opportunities. Please let me know how you think these kind of situations should be handled according to the flow chart. Thanks. I hope I could describe what I see and why I do
P.S. I see that "seesaw" doesn't mean what I wanted to say. Just remove the "see" and only use "saw".
The Doji test has two possible outcomes PASS, FAIL. When price moves through or beyond the open of the bar the outcome is PASS. You can't go back to mark it as FAIL once you've marked it as PASS because in any case price has moved through the open of the bar. In other words, the PASS sticks. Now you can continue on your flow sheet in two possible directions depending on bar dominance or non-dominance. Doing reversals during a two-pair will make some spread trading computer at JPM very happy. It'll cost you a fortune in spread and commissions.
I'm not in front of the flow chart at the moment therefore just quickly my understanding... If you see the instructions above it wail say to go to E after you have a PASS and choose F or G. Let's say we had dominant volume then we are at F. From F we have the same possibilities that we had before: Price can make a doji, we go to M and from N we see if we have PASS or FAIL. If PASS and volume is still dominant then you end up at F. There it is our death loop.
At F you exit on non-dominant and feedback to A. From A you move to B or C. What you missed is that from here you re-enter if and only if there's an indication that dominant volume is returning. This means that PASS-FAIL-PASS-FAIL is still not a possibility as there should be other nodes in between. You can technically get whipsawed if you enter on PRV AND n+1, but PRV just peters out and price does a doji again. If you experience this often you can decide to add the following rule that prevents getting whipsawed because of the PRV in that situation: IF coming from B through A ENTER IF and only IF trough before n OR go to C This makes sense running it through in my head. I may be mistaken though so run through the logic for yourself and test it empirically.
You are ringt on in your description. This is cycle 1 and the goal is to build an anti whipsaw mind. The goal of cycle 1 is very simple: two dominant trades with 2 contract where eaxh trade has a price excursion of 2 points. There will be many trades that fall short vis a vis the excursion: some will be two ticks, some will be three ticks, some will be a point or more. Occasionally you will heve over 5 points during bar n+1 and n+2, or more. We are finding the pieces of the market with cycle 1. At some point the pieces will be in long term memory for dominant price moves. Cycle 1 introduces all the pieces and there is no need to have any feelings about missing an opportunity. Looks at the quandry of the CW type person and relax and enjoy building your mind as you are doing ably right now piece by piece. The 3x5 cards are brief nodal definitions. you add to the cards when your mind tells you something. Soon you will have to paste the cards on 8 1/2 by 11 sheets and put them in a three ring binder. Now you can also use sheets 23 and 3, 5 and 6, 8 and 9, and 10 and 11. Plenty of spece to write there too. What happens in 12 days of logging? Well, you hve a long term memory that begins to work. You do not need to refer to notes too much. Next, questions appear to you when you see the P, V charts forming bars. By then you have learned how when price hovers around a DOJI, the bar is not going to be significant. You will begin to log the cases of forming bars in column J of the log. You will see that "internals" are pairs of bars that do not make money nd are part of "continue" or "wait". All the details for cycles 1 through 10 hav been posted over a nearly SIX year period. A perosn "working" can build his mind in a matter of a 1/4 of a year with respect to ALL 10 cycles. Certainly most people are afraid to do this or they are already past the line in the sand where that potential was destroyed by their decisions and the subsequent consequences they got. Life is tough. trading is counterintuitive and the minority control. Imagine how dirricult it is for aprson the not recognize volume leads price. They certainly get the consequneces as demonstated by thier absolute beliefs in what is possible to extract. The behavioral finance failure is extremely well documented. I remember back in the very early 60's when in Greenwich and sailing out of Indian Harbor Yacht Club, etc. I occasionally dropped in at the "white paper" mills of the time. I corrected white papres on pharm, textiles, machine tools and paper since I was doing the 10% per cycle and apporoaching 60 to 80 turns a year per capital stream in stocks. Some nice financial clubs in those days (Top floors of taller buildings.) In summary, the simple cncept of pool extraction by virtue of price change is foriegn to the financial industry and the legions of happy followerss of the CW and all its myths. It is very very humorous to read someone telling me I haven't proven the stuff they want to see. As five decades have passed, a record was build and published. More than everything people have asked me to "prove" has been made available and verified authoritatively. thier are some very humorous people here on ET who thing thay are correct and they do not "get it" at all. New housing is at one third of of "average" years. (600K compared to 1.*Mil) Next year you get to see Municipal bond defualts set all time highs. The idea is to have immunity during this Depression. Help others, if you can. So Merry Christmas to all and a Happy New Year as well.
Since this thread was hijacked long ago, maybe consider moving it under the "Journals " forum, possibly label it 'Jack Hershey's Exact Science in Detail'.
Hijacked by what? This appears to be deliberate esoteric drivel without any evidence to back up the claims.