Fractal Theory: Redux

Discussion in 'Technical Analysis' started by llIHeroic, Oct 17, 2016.

  1. Sprout

    Sprout

    Yes. I've considered it. Especially when I didn't understand nor correctly understood the real nature of what I was attempting to accomplish. The thought has led to lots of sleepless nights as real world losses increased by the day as I was struggling. Those were the times the voices of doubt were the loudest.

    However, the persistence and determination to come to a higher and more complete understanding of how the markets actually work is a reward that keeps on giving.

    Getting past our our innate bias requires holding two levels of awareness simultaneously.
    Jack and Spyder clearly defined the path. It is a set of drills that builds one's mind and senses. It leads to much much more than just making money.
     
    #71     Apr 9, 2017
  2. iamdom

    iamdom

    True...may you self actualize and build your mind even bigger then the master. Two levels of awareness is a lofty goal, but it can be done. Three levels of awareness is out of reach
    and not even necessary. Mind over money any day. Good luck.
     
    #72     Apr 9, 2017
  3. Sprout

    Sprout

    Thank you.

    Consider a simple coffee table.

    The first level of awareness is that the table is solid. Which we interpreted from our five senses.

    The second level of awareness is that the table is mostly empty space. Which we interpreted from the tools we have created to extend our five senses.

    A third level of awareness would be the relationship between the two.

    In other words; I, Other and the relationship between the two. This dynamic is an active aspect of consciousness.

    Jack worked on fixing the fundamental relationship most traders have with the market. That is the issue of trust. Most traders approach the market as if it's something to be conquered and dominated. My interpretation of Jack's view is more symbiotic. "Is" because that view can be assimilated by any willing to open their mind, do the work and follow the path Jack and Spyder mapped out. Not just read, do the drills!! Spyder's development over the years I've observed shifted to giving answers to having folks work it out for themselves. The magnitudes and frequency of the AHA's have also increased through that process.

    People are funny. We generally do not value things that are given us or come to us easily. I understand the skepticism. I am a recovering skeptic.
     
    #73     Apr 10, 2017
  4. Sprout

    Sprout

    View of the day ES - 5m
     
    #74     Apr 13, 2017
  5. llIHeroic

    llIHeroic

    FWIW it's long been a practice of JH and Spyder to omit overnight hours because of the sharp decrease in liquidity; and "carry-over" the trends from yesterday's close to the next day.

    Seems like we have the same major trend legs from the 13th. There's quite a few people who have gotten enough of the mechanics to produce correctly annotated charts with proper fractal integrity. After that point it's a matter of picking a resolution level to trade and trying to sift out the subtleties between the numerous times your fractal seems to have potential for completion and the few times when it actually does. Those waters are a bit murkier and tend to make or break the P/V trader from what I've seen.

    Whether there's a final piece of this method that was never explicitly demonstrated, a certain degree of intuition is eventually required to perfect it, or there is just a greater noise-to-signal ratio on average in present day markets than in years past is up for debate in the community. The time when this stuff really shines the most is in volatile, high pace conditions in my opinion.

    Considering that there were successful P/V traders back in 2007 even with how unrefined the charts were back in then makes me lean toward a mixture of #2 and #3. I think in many ways the latest generation of P/V'ers has suffered from seeking mastery via over-complication of this stuff, myself definitely included in years past.

    I once had a short conversation with Jack; his later RDBMS system had mechanical rules; I entered and exited a trade exactly where they specified. When I looked at his blotter for the day I noticed he held the short past that point and it went another 5-10 points or something. I mentioned how the rules designated an exit at this specific point and asked him what made him hold the trade past that.

    I'll never forget his response; "You've just got to know a reversal wasn't possible at that point."

    Glad to see some new blood finding value here. It sounds from your tone that you've been able to experience a degree of success with the method. Hope it keeps up. I've found consistency a lot harder to maintain than the initial success. Best wishes.
     
    #75     Apr 14, 2017
    Sprout likes this.
  6. 'noise-to-signal ratio on average...' They are just the internals that treated as one bar.
     
    #76     Apr 14, 2017
  7. Sprout

    Sprout

    I haven't quite figured out my charting software to be able to carryover channels from the previous day without the extended hours activity. I see the value in it.

    You point out an area that was an extreme source of frustration for me to work out. I got caught in a thought loop of "gaussian sequences completing on a faster fractal before the next higher fractal can start."
    Well from my debriefs, I found so many instances where that was not the case or where it was the case but I could not perceive it or I was perceiving it inaccurately.

    The concept of jumping fractals brought some clarity.

    One 'aha!' for me was to start building the tapes from 2 bars using light gray lines and building up the tapes, traverses, and channels more rigorously.
    Annotating volume from three different vantage points helped me in a way the previously worked out volume annotations did not.

    The first view is monitoring increasing/decreasing, B/R volume bar by bar.
    The next view is picking out from this field the B2B and R2R's. This transformed previously confusing Gaussian formations "not completing" to non-dom traverses shifting to dominant traverses within a bar or perhaps over a series of bars. I'm looking to match the pt2 of the dominant to the short term gaussian peak.
    The third view is viewing the resultant dominant channel.

    Having the volume sequences make sense has been a welcomed insight.


    I think that is why Jack spent so much time talking about NLP pictures and performing MADA. Annotations are great, and I've found that the logging completes the method to build the mind and develop the intuition. It's also the hardest for me to perform consistently. It requires a stamina of concentration that I endeavor to increase.


    Your sentiment brings this to mind:

    Isn't it strange how princes and kings,
    and clowns that caper in sawdust rings,
    and common people, like you and me,
    are builders for eternity?

    Each is given a list of rules;
    a shapeless mass; a bag of tools.
    And each must fashion, ere life is flown,
    A stumbling block, or a Stepping-Stone.
    R. L. Sharpe


    I just started in on the thread: SCTlearning from Scratch.
    Well, I found myself scratching my head on that thread,... always new concepts from Jack to stretch my thinking!


    Thank you! I appreciate your response. Yes, I am experiencing success with the methodology. I understand it's boundaries as well as my own and can work with that.

    Cheers!
     
    #77     Apr 17, 2017
  8. Sprout

    Sprout

    Would you be willing to expand on this concept? In a drill, Jack said, "All internals are made from two bars into one bar by combining the parts as a synthesized bar. This is an OHLC result with a second dominant sentiment second leg. By doing this all bars resulting form trending segments with turns at each end."

    With this chart, a lateral forms at 7am and lasts until 9:05 (only annotated to 8am). How would one go about synthesizing this range of internal bars to increase signal-to-noise?

    ES1 5m 041317 - Lateral Question.jpeg
     
    #78     Apr 17, 2017
  9. First, you should eliminate interbar gaps in order to see the cases correctly.Please see the image attached with the examples.

    Note: i don`t mark translations - only the internals on my chart. internals.png
     
    #79     Apr 17, 2017
  10. The curve will always lead to the finish line...lol
     
    #80     Apr 17, 2017