Posted by Banjo on 06-22-03 04:14 PM: That doesn't mean he's betting against you. He just knows singing in the shower and singing for a living in front of 5k people are two very different things, soley because of emotions evoked in the latter circumstance. After all the effort you've put forth I'm sure he hopes for your success. Why wouldn't he, it would prove the theories are valid and worth his own pursuit in the endeavor. Posted by bundlemaker on 06-22-03 04:17 PM: nwbprop, thanks for the explanation. If you don't mind, let me take something you said one step further. I'm trying to understand why you would get out, if not reverse, if price didn't make it to the far side (meaning upper channel if long) of the channel. Is this to make sure you're only staying in for the strongest moves? If not making it suggests reversing, there must be more to it than that. This is a whole new way for me to look at this stuff, and I'm trying to make sense of it all. Jack would probably argue to just do it. Part of me seems to need to know why. Quote from bundlemaker: vorzo, In your example of a normal sequence above, I'm assuming it's a long scenario. If so, then the "away" side of a channel would be the top of the channel and the "right" side would be the bottom of the channel. Am I getting this right. You got it. Quote from bundlemaker: From your analysis of my trade ("entry was at the away side of channel") can I take it that if a rocket triggers but then pulls back to the low part of the existing channel, then that's a valid re-entry, or perhaps an ice berg entry. I'm not clear on how specifically to use Jack's channels, and I can't find the page on this thread where he describes what to do. I don't know whether Jack discussed this but I noticed that when a slow channel has formed prior to a rocket signal, it can go one of two ways: - slow trend -> rocket signal -> BO to the away side. Trend is getting stronger so you enter. - slow trend -> rocket signal -> bounce off the away side -> traverse right -> resume trend. In which case you're better off waiting for the pull back. Otherwise your trade is in the red right from the start and you can get shaken out. Posted by vorzo on 06-22-03 04:35 PM: Magna No offence taken, I was joking. Point taken - I know that what you said about live trading is true (I've experienced it myself). I just wanted to point out that I don't post my results to prove myself nor will I take any action to do so. People can use it as forward testing, and I am using it for discipline and feedback. Posted by vorzo on 06-22-03 04:37 PM: Quote from bundlemaker: nwbprop, thanks for the explanation. If you don't mind, let me take something you said one step further. I'm trying to understand why you would get out, if not reverse, if price didn't make it to the far side (meaning upper channel if long) of the channel. Is this to make sure you're only staying in for the strongest moves? If not making it suggests reversing, there must be more to it than that. This is a whole new way for me to look at this stuff, and I'm trying to make sense of it all. Jack would probably argue to just do it. Part of me seems to need to know why. See Jack's comments on page 113. Posted by nwbprop on 06-22-03 04:41 PM: Quote from bundlemaker: nwbprop, thanks for the explanation. If you don't mind, let me take something you said one step further. I'm trying to understand why you would get out, if not reverse, if price didn't make it to the far side (meaning upper channel if long) of the channel. Is this to make sure you're only staying in for the strongest moves? If not making it suggests reversing, there must be more to it than that. This is a whole new way for me to look at this stuff, and I'm trying to make sense of it all. Jack would probably argue to just do it. Part of me seems to need to know why. The point of having a true channel is for the price to traverse it. We want to get the whole trend in the bank. A signal that the trend is ending is when price fails to make it to the other side(upper channel if long) and volume pooping out. If the price fails to reach the upper channel, and volume poops out, then the trend has weakened and you are seeing the end of the trend. Jack suggests that when you see this, you should exit because you are at the end of the trend. He also suggests that you should simultaneously exit and "tack" on to the other side(short) because the long trend no longer has its umph. This will get you ready for a reverse IF it occurs. Usually, you get consolidation after a good rocket but if you tack on a short you will be on the right side anyway. hope this clears some things up. Posted by bundlemaker on 06-23-03 09:45 AM: this is just awesome stuff guys, thank you, thank you, thank you Posted by CrescitEundo on 06-23-03 11:57 AM: monday am trades Jack, thank you for sharing your knowledge. I have been following your posts for a little while. I am very excited about what you are showing us have been trying to trade your technique. I am now doing Rockets and reversals out of failed rockets. I tried to pick up breakout trades out of vdu but have been getting burned. I could benifit from you looking at my trades. unfortunately i can't trade the E-minis yet so i have been trading the SPYs off of the esi3/esp3 charts to learn. since i am trading spys i trade 500 shares for rocket/reversal and 100 for anything else what i saw this morning started in a downside rocket got in anticipating a 1min macd xo (not really a jack rule) 2003-06-23 09:47:32 SLD SHRT 99.18 0.47 -500 washed on upmove 2003-06-23 09:52:03 BOT 99.17 0 0 reestablished on reentry to rocket 2003-06-23 09:53:20 SLD SHRT 99.15 2.33 -500 (marked) left side of channel for my own education 2003-06-23 10:18:58 BOT 98.72 0 -400 what i saw was a failure to traverse to the left side of the channel so i closed out and reversed for 100 shares 2003-06-23 10:42:12 BOT 98.54 0 0 2003-06-23 10:42:12 BOT 98.54 0 100 went into consolidation and tried to play the breakout 2003-06-23 10:54:10 BOT 98.65 0 200 volume did not sustain out 2003-06-23 10:55:36 SLD 98.6 0.47 100 washed out 2003-06-23 10:57:55 SLD 98.52 0.47 0 this was a better morning for me than usual (the rocket worked) but i usualy lose money when i wash. I also tend to have tried several trend channels before i find the real one which makes me hesitant to trust them. thank you for any advice you can give me Anyone else learning Jacks Method please help me if you think you can.
Posted by sunseeker on 06-24-03 01:09 AM: I have been following this thread since the beginning. I have read every detail and I have applied the strategy on paper. The key element was the Point 1,2,3 that finally gave me the confidence to start trading this method. I will give it a try from July 7th on and I will post my results and experience here. Posted by jack hershey on 06-24-03 08:28 AM: Re: questions for Jack or anyone trading his system Thanks so much for your post.A lot of people here could process your questions and I will do it briefly to add a little here and there for what is coming up. One important thing you tell us is that you have a terrific feel for this stuff and also you are interrelating things. The interrelationships appear more easily as a person gets the sequences listed and understood. Many of your comments show parts of sequences below. It is like looking at a partially commpleted jigsaw puzzle; the groups of pieces, like sequence segments, beging to give you a picture of what you are going to be seeing as a KISS approach. See ***'s below. Quote from CrescitEundo: I have a couple questions for anyone trading Jack Hershey's system and would be interested in starting a dialog with any one trading it *** If others comment then we can see more nuances. -when there is a rocket at sync (or if you miss your initial entry) what do you look for as an entry signal. **** Enter on sync. Just do it. Here you are giving sync priority. You do this because we need to take risk out of the situation as much as possible. For slalom folks who trade more than rockets, the opposite situation, i.e., centering at open, you bracket and take the BO as the morning "wakes up. It is exactly the same as the post 13:15 wake up. I have been using the 1 min macd xo but I feel like I miss a large portion of the move waiting, *****Two points. Beginners wait. They wait for one reason; they can't handle pertibations that can come up. Beginners are making money at a rate possible under low/no risk conditions. It is very important to get rich without having to sweat. By staying out until the trend is strong, fast and rolling, you save all kinds of money and all the emotional losses of confident that are totally unnecessary to experience. -is it a bad idea to add to or establish a position at a point 3 *****You need to add funds anytime they are sitting idle by some mistake you made leaving them idol. Beginners, though have a risk management policy of trading the minimum capital possible. That is the amount needed for 1 contract. Slalom players are restricted to the maximum capital that does not require partial fills. This is because they are always one the "right" side of the trade. Partial fills cause slurring effects in being on the right side. I know you can say: But....... Try to not think that stuff up. Think about where to put extra profits that will not take up your time instead. -when the price action doesn't traverse to the left side of the channel what is the reversal signal? *** When you have some sequences written down to play with, you will see flaw after flaw pop up. You can decide during coctail hour what one you take for an exit. If you are a slalom person and you are using momentum level step downs, then you will be using a "change" stategy that has been triggered by prior stuff. This means acing into a reversal on the pivot point. If you are running ahead of these post Q's then add these quips to your list of "to do's" as practice when they come up. It is always good to have a progression of new activities that improve your money velocity daily net. There are people out there that have had some doubles of prior performance at this point. So to be a "performance" trader you should plan on getting your "tool box" souped up. One way we will be doing this is by "fixing" people in other threads. A couple have begun to notice that they can read my posts all of a sudden. Naturally it is because I finally am making clear posts to the ET. It is very difficult in this world to communicate. I absolutely have to move to where you are. For me, I try to but it is not the easiest thing to understand the "why" for others right off. For me the first 25 years were the most difficult. Nowadays there is a new breed of young turkeys out there too. ie how do you know that it isn't going to make it as apposed to simple a (hiccup) DU? *****We do not care whether it goes either way; we go with the program. As you list more and more levels of detail on your sequences as subordinate ones, you will go through a change in consciousness. (We are headed to a place where your consciousness makes all of this an automatic streamlined fun thing all the time). I did a tic tack toe post yesterday somewhere. (either as me or bubba7). The nuance in it was that as the market operating point sits there, future paths to adjacent cells are blocked by sequence events (flaws in the operating point). Finally all alternatives get blocked so you know where you are headed without doubt or risk. I use this technique when I am posting ahead of the market in real time chat rooms. It is scary to some and others "see" that I have a method that I am applying. My SEC "insider trading" citations have all been cured once the SEC troops "get it". Strangely, corp execs are slower to understand that I am NOT talking to employees to get info that they think I have. LOL. The corp culture strikes again. -we are not supposed to trade after 3 *****Yes we are. 13:15 starts the pm. A MOC is always there for you too. Beginners usually are out though. but i think that that is where the market has been having some of its bigger moves of late, how strictly do you adhere to this rule, it does not seem to be nearly as big as the morning 9:45 ****Great observation . Go for it. -when you are looking at the 5 min stochastics they project the rest of the period and change when time goes by. ***That is so neat to see. Is there a trick to figuring out if they will really cross, ie is there something else you are looking at, like the 1 min, if so what are you looking for *****Personal confidence is what I am looking for. I have always found that as I bought bigger and bigger sailboats, that the ripples don't matter so much. Wheels steer better than tillers. I have introduced "entwining" to cover all this stuff. When you think as a beginner, you are looking to make money on strong trends ("entwining above the 80 or below the 20). You creep into a 75/25 mental framework as you emphasis "entwining". You leave the "over" whatever thinking in the toilet. By sitting tight and looking for point 2, you get over the chills. After point 2, you see the first easement in the trend (on takeoff we want to get up high enough to cut the ground noise problem and we want to gain airspeed so we can be more efficient for the whole trip). You make it to point 3 and you do not go hair trigger brained. It definitely is tough. If you get conscious of the cell blocker flaws that are potentially there, you will find that when they show up (especially slalom guys) that you are in a "change" modus. Beginners barge through this and look for a wash exit simply because they see sequencing is pooping out and getting a point 2 is not in the cards. You are going for point 2. If you are progressing, relax in your attire. The key is doing everything a 1,000 times. I do put myself where you are as best I can. I can say that at least you are a millionaire from reading your stuff. It may not be manifested yet but it is just a fact of life for you. Posted by ram on 06-24-03 10:16 AM: Brackets I've been paper trading the S&P for a year and am finding Jack's methods to be the most successful I've used so far. Thanks Jack and all the other contributors for all the valuable data. Just one question for Jack (or nwbprop or vorzo or anyone else who can enlighten me). What exactly is a bracket and "bracketing"? Posted by 1contract on 06-24-03 10:33 AM: put a buy stop a little above the mkt & a sell stop a little below - so that you go with whichever way the mkt chooses
Posted by nwbprop on 06-24-03 11:04 AM: 6-24 Hopefully, i will be consistently posting my am trades during lunch. I hope that everyone can learn and we can move to the next plateau together. I am friends with cresciendo(bad spelling) and we are working together to learn this stuff. I trade off the 5 but use the 1 min to anticipate. I thought it would be more helpful to post the 1 min instead of the 5. Sorry but my time on my first alert(graph) is about 3 min fast. Trades: 9:45-- Synch- the market was strong and my 5 min macd was xover and stocahstics were approaching the 80 level. I decided to enter on the next 1 min xover or 50% macd bounce. this occured at 9:45. I was looking for this to turn into a rocket. 9:50--the 1 min macd did not really make a great bounce off the 50% line. I was more inclined to taking a failed rocket reverse with divergence of stoch as confirmation. I therefore exited my long and reversed when the 1 min macd xover. 10:00--The divergence never really occured(which also means that they started to entwine) becasue i think the market seemed to be waiting for the 10 am number. since we had sntwining i re-enterd my long on the next 1 min xover. 10:08--i drew my trend channels and the channels were broken along with stoch coming out of 80 tape. I therefore exited. I did not reverse because i only like to reverse when there is no entwining(failed rocket reversal). 10:38--volume dry up under 100k. i entered a short on the breakout down with extra confirmation by the 1 min xover. was looking for thie to turn into a short rocket. 11:00--I exited at 11 oclock which seems to me to be a premature exit. I should have waited. I should have waited until 11:11 when it broke the channel and stoch exited 20 level for antoher failed rocket. Posted by nwbprop on 06-24-03 11:29 AM: In retrospect, it looks as if after the vdu BO down, i should have waited to see how price would react at the low of the day. We already had 1 failed rocket and too me it seems that more often 1 failed rocket leads to another in this market. A rangy day. It ended up creating a double bottom at 10:54. oh well something too look at. Posted by nwbprop on 06-24-03 01:49 PM: Quote from bundlemaker: As I was expecting sort of a "banger" day, I passed on the morning trades. One trade this afternoon as follows: Short ES 2:37pm at 983.50 observations: macd -.53, stoch fast line under 20, coming off potential double top, 1min began entwining under 20 and volume was low during the ensuing several minutes of consolidation at 2:44 vol continued to drop off at 2:45 slow line now under 20 also at 2:46 1 min break down with higher volume at 2:47 5min stoch fast and slow under 20 at 2:51 5min volume dropping on basing action at this point everything seems in gear, but suddenly the 1min stoch starts screaming up, 5min macd rounding bottom, and 5min stoch leaves above 20, so I bailed at b/e I must say, a major benefit of using this methodology is a LOT less stress. You just get in and get out. In retropsect it seems like I bailed at just the right time. Part of me wants to attribute that to mere luck, I'd like to think it was at least partially skill. Becasue earlier i missed the double bottom and we had 2 failed rockets this morning, i was more inclined to think that their would be a failed rocket long and double top @ 2. I therefore exited my long and shorted around the high around 2:06 and covered at 3:02 when it broke my trend channels. we exited very close to eachother. Looks like you had a Great cover. Posted by jack hershey on 06-24-03 07:32 PM: general comment. If you look at two paths A and B. I prefer that people use B. A. go to a place and learn a whole method by paper trading. Then go into the market with real money. B. Go through levels of learning where the levels are arranged so you can make money on each level. Do not go from one level to the next until you make money according to a goal first. My goal here is three times inital capital. And the level first done is rockets only using one contract max. Lets say you are already a trader and you have some stuff going for you. That includes most people here. Well add stuff that helps. If you find out that you can drop something (like your hair trigger exits) then do that in favor of the improvement. When we get through this.....you will have a two level tool box with the ability to trade continuously on the right side of any market. One level is for the contuation strategy and the other level is for the change strategy. You will see the market operating point as the center of a tic tac toe board that move about a bigger matrix. You will see flaws in sequences as "blockers" between the operating point and the eight adjacent tictac toe cells. you will see the blockers set you up for the next move of the operating point to the only place it can go. Your tools will aways be used in accordance with the whole nine cells of the tic tac toe. What everyone is in for is a KISS mode of operation where you have an excellent view of the playing board. Making a multiple (above unity for sure) of the daily H/L range is the daily money velocity target regardless of anything else. You are going to find out what the word real means. If you think anything you are presently doing is meaningless; get that out of your head right now.
Posted by PoundTheRock on 06-24-03 07:58 PM: Re: general comment.: Quote from jack hershey: If you think anything you are presently doing is meaningless; get that out of your head right now. Yes, learning the market in the beginning is a disjointed, non-linear process. If I were to generalize my evolution as a trader over the years, then it would be as follows: 1. Learn the major areas of technical analysis. This is an ongoing process; investigate everything. Don't be dismissive of any area until you have proven it to yourself. 2. Develop a simple working system incorporating some basic technical analysis elements; I believe this is (and it was) the hardest step. That is why this thread is so valuable - it contains a specific methodology, and you will have the framework for developing one of your own. 3. Develop a suite of systems over several time frames: intraday scalp, intraday position, multi-day position, long-term sentiment. 4. Develop a flowchart of system-to-system interaction, i.e., identify when your intraday system overrides your multi-day system and vice versa. If the systems are in sync, then ride them all. If the intraday signal is extremely reliable, then don't let it just hedge your multi-day system. Reverse and re-establish the higher timeframe position at the end of the day. 5. Cross-pollinate the systems. For example, if one system is very good at identifying major support and resistance, then incorporate those levels into the lower timeframe system, perhaps using these levels as areas to take profits. Posted by nwbprop on 06-25-03 09:28 AM: 6-25 I have tried to use xnviewer again saving with more colors. I hope everyone can see my graphs without a hitch. 9:45--At synch, Although the fast line had diverged out of the 80 line. i thought we were still entering a long rocket. I decided to enter on the next 1 min xover which occured at 9:49. If i was wrong i was going to wash out for a few cents loss(SPY). 10:00--the economic number came out and the market seemed to pop and confirm our rocket. It then started creating a point2 around 10:01. 10:05--Stoch had exited 80 tape but volume had dried up on 1 min. I thought it was creating a 2nd point3. I drew my trendlines accordingly. Price started increasing with volume increasing. All no flaws. 10:09--price makes a push down through my 2nd pt 3 channels. I exited. It was a bad sell. Next time i think i should hold on becasue volume was originally increasing from the dry up at 10:05. This was a big kick in the crotch because i missed the real move of 30 more cents as soon as i sold. 10:16--price failed to make it to the other side and volume died. Dry up and divergence on stoch = change. I shorted(reversal if i had a long still) at 10:16. 10:31--price went my way but i did not know where to exit. Price started to come back up so i thought we would be stuck in CCC for a while. I therefore exited. Posted by icarus618 on 06-25-03 09:38 AM: A Lovely Rocket This Morning Courtesy of Jack's teachings. What Magna and others like him just don't get is that in order to see and act on this stuff, you need to get rid of the junk pictures in your head. Read Magna's seeming "advice" to vorzo and pay attention to the pictures that he draws there. Super and uncomplex annotations on your chart. My compliments. Elsewhere in ET, yesterday, I commented on today's open and market direction. I also suggested a conservative entry technique from the "continuation" drawer set of tools. You are noticing the guiding formations and not adding too much detail. This clarity allows you to see much about the market's operating point. With 24JUN there and defined in an uncomplex manner you can be confident of your estimate (anticipated probable continuing path of the operating point) of the ball park for the next day coming up. The fuzzy area of prediction vs. anticipation is not on the table here. What is on the table is dealing with the smooth flow that the market has for moving it's operating point. I do not want anyone to get a buzz on about what the market is going to dump on us next. What is important is knowing that the market doesn't give surprises. You may think it does but its shear size precludes that. We are focusing on being money makers. Level by level we synthesize stuff for the singular purpose of being ahead of the beat and optimizing the extraction of money from the market continually. Leaving on CCC as you see it is very kewl. The am is coming to an end. Yesterday I posted a long entry this am and said use a bracket. If it is going long why bracket. the reason is uncomplicated; the bracket is designed to use when the market "begins" to make money. Years of posting pre-open stuff (mixed markets opens included), taught me that people can become dependant. There is nothing wrong with this but it is like handing out fish. Yesterday the thread I posted in was appropriate for an injection like I made. The past pre open emailing I did was for a theme others named Getting Tomorrow's Paper Today. So I wrote it that way. Here we are doing the fishing thing. Your post and illustration are right on the money. For those slaloming you have a 2 1/2 point range and you can see the slow cyclical pace keeps the relativistic STOC alive and well for signaling. Always use the first derivative with respect to time as the signal. Google around if possible for the fisher (Harvard Statistics)/ Hershey maths to make it possible to use calculus principles on non continuous stat functions. Old stuff. Eyeballing is a good alternative for science types. You can see, in general our first entry will make money as the daily range opens up. It always has and always will. Interday stuff will give you a ball park projection of the potential H/L. The daily take that we are headed for is a multiple of the H/L. You can see as an expert (just go along with me here and be one) that we use three types of trends to accumulate profits segment by segment during the day. There is no magic required here. The market opens and the daily range grows itself. this is a non lateral trend. We take a segment of profits or we take three segments mimimum, depending upon our level of efficiency. If the CCC comes along, you exit, or slalom beginning at the first non channel traverse. you continue along in the CCC until it dies (centers). Now you est up for the BO on the centering. This is usually the run that sets the other dimension of the H/L of the day. It gives you a very nice set of profits. What we are doing is moving away from the myth that people are beginners intellectually. We are experts intellectually and just not rich yet maybe. What I mean is this: You may not know how to land a glider. You may not even own one. If I take you up and let you fly I only say one thing to you. Take your hands and feet off the controls if you panic. The ship or even a sail boat will do the same thing. It will go into neutral. You are an expert simply because you know this key principle and everything else can follow from this. An acrobatics ex world champ is the same as you intellectually. You both have the same equipment as humans. You both can deal with acrobatics the same way. I was lucky enough to deal with the attention span of autistic kids; their care takers had to make huge adjustments because of me. The kids did become different for sure but the build in viewpoint of their care takers was the biggest hurdle. If you extend the attention span of a little person 300% beyond the textbook max, you are stepping into a new world. You are traders and you are in a market environment. You look at the task as experts would. We start with a plateau of rockets to groove on making money. Fine, pull the stick back and find out what happens. Let go of it. Whew, that was an experience. What is expert is pulling the stick back as you think. Okay so we make profits in segments and it continues through the day as we move from plateau of experience to plateau. I have set before you a tool box with two drawers. I am filling it with tools. the operating points of the market, we are not going to flesh out completely. There is a tic tac toe weji board thing that i could superimpose. But I may not. What i do to support you is building tool boxes and stuff. You do not have to go tothe toolbox factory. you simply pick up the tool box to use it like a ferrari for going from point A to point B. you will use it like every ferrarri owner uses his car. As an expert person who's job is to make money, you are always going to be making money as you desire within the potential of the market which delivers the opportunity to you. The autistic breakthrough came by using an external connection to get internal parts of the brain to connect. When you knock down a 300% improvement, then you have a basis for changing the management. Alexander's method of least connected systems to achieve functionality is another little tool that can be used in this op here.
Quote from CrescitEundo: OK, loking for that next plateau of conscienceness, I think that means that I am looking to decifer continuation and change, as i understand it change comes when flaws start appearing. I take this to mean that, at the beginer level you get out on a flaw, at a higher level you have more sequences in your toolbox, some of which are more subtle and maybe a little 'less important'. So you start to see smaller flaws and then are looking for one thing in the sequence that shows you it is the bottom (top) and you reverse. Is this about right? SO i need to work on figuring out the rest of/ more sequences. I also believe that you were telling me to relax and not worry about trying to get the entire move yet, sequences. I was tryign to do that by attempting the other trades with 100 share (SPYs for me until i get access to trade the E-minis). Is this going to be detrimental/ counterproductive? Should i focuss just on the pieces of the puzzle that connect to the rockets? As upposed to for example trying the price formation break out trades that have been hurting me. Any advice? how you handle #s, i get in trouble, as i see it we are in theory getting in before the momentum realy builds and the price runs up, i don't see how you can do this with out guessing? Do you ignore the initial pop and wait for it to settle back down, or do you eventualy bracket trade it? Despite my knowing better i chased the number today. Could you explain what you mean by momentum level step down and MOC Let me catch you up a little and suggest that if you read the next series of posts it will gradually come to you. At the beginning of July I am going to pre us for the rest of the year. there Will be stuff on my journal site also that will represent the editing of this thread. So, all in all, you will be able to catch up. You post is incisive and staccato. There is nothing that I can't deal with in kind. One of the ways will be to use CE in a note on my running commentary. You will be a rep of a person who is new, bright, and with the program. I printed your post and have it marked up with points to make to you when the charts get there. Today we are following the market from a chart done above. I stopped my comments as the chart went into CCC. CCC is congestion convergence and centering. It has tools in the lateral trend part of the "continuation" drawer. But as experts know, it fits, at the end of the CCC into the "change" simply because of the centering and the almost zero range of the lateral channel. the channel is disappearing SO we are no longer "continuation". I could not ask for a better day and a better chart posting to be able to get you and everyone up to speed. "change" Use your charts to see that the "change" mode is not just a brief one. You can clearly see when the volume takes the momentum down to nothing. The lateral trend lost it's capability to support experts slaloming on the right side of those being whipsawed and those whose approach do not incluse "chop" capability. There are many posters in ET who post on their approach failures and the fact that they remain mostly on the opposite side of making profits. This is where continuation" ends and it's strategies and tools can't be applied. Now do this. Turn into a hair triggered exit person for a minute. Think about "change". See you think the change period comes and goes just as fast as the trends you jump out of prematurely. Change modus lasts for significant periods of time. To day is one of these. Centering was from 12:00 plus hours. "change" started then. We use the 80/20 tape to block out stuff. On "continuation" we operate outside of the tape. rockets Icebergs, slalom on slow pace where STOC keeps working outside the tape. NOTICE THIS: When change started and it is a second strategy, we have to take off the tape and operate on the neutral and 50% as a reference. THUS WE TURN TO A REVERSAL SIGNAL STRATEGY. Do you SEE? look at the "change" modus continuing. The "failure to BO prolonged it. Next the VDU hit as the price returned to center. Experts are in "change" and reversing to stay on the right side and make more and more money. Next VOLUME strikes!!!!! Look at the volatility there. You are using a reversal drawer with tools in it that keep you deep in the groove. The volume wanes and it returns. Note that as it wanes the price rises. The P,V tells you falling volume will give you change in price direction. You are right there and you see volume begin to pick up and price begins to fall. It you use a reversal right out of the "change" drawer. At 15:15 the "change drawer is closed". The STOC came out of the tape. We are short and in "continuation". OKAY. This post gets you straight on how "continuation" and "change" work. You get it that you need two drawers of tools. You can see now how all the indicators, formations and signals are there for you all the time at every moment. You see that I did not step off the 5 mnin to keep making money every minute. By 16:20 you will really see what I mean. The market will be up tomorrow. This is not a prediction. We are grooving here folks. okay easing into tomorrow. You can see at 16:00 we are outside the tape easing into tomorrow. This is a continuation mode. The thing you are looking at is the price setting its support level. Support and resistance are continuation data measures. I am making a strong effort to support everyone's individual approaches here with the least disturbance. I know most of you have been in entry exit land for a while. while some do reversals, i have set the scene to be sure that you do not revere at the end of strong trends. the end of strong trends is called consolidation. I know everyone has a lot of myths to contend with. As these pistures easy out of the picture, you can see your modus of replacement is based on a stronger operational foundation.. What any person posts when they post improvement is a clear realization of the consequences of thinking stuff through and weighing things to draw a superior conclusion. We all have our own approaches. This stuff fits into them because it happens as a consequence of thinking and evaluation. Paper trading I disagree with the alledged "meaningless"-ness of paper trading. Read the classic "Psyco Cybernetics" by Dr. Maxwell Maltz (hope I spelled it right). A highly emotional/stressful environment is actually the worst way to learn. A playful environment is the best way to learn. I knew that Vorzo has been in a valid environment when I proposed coat-tailing. Why would I want to risk money with someone who is in a state of panic? ...like myself!!?? I suggest that if 5 people offered Vorzo say, 15% of weekly profits, he could sooner refocus on full days of live forward testing. Then we could all have some fun, maybe make some money, and accelerate the learning process going on here.
a little more on change/continuation Quote from CrescitEundo: Jack, Thank you, i think i understand continuation/ change a little better, i previously had thought of it as a state triggered by,for example failure to traverse to the left side of the channel. It sounds like it is more of a state of the indicators being closer to nuetral? This does not make sense to me because you would have to enter a state of change while in the rocket? I am still a little confused. I do not know what you mean when you say take off the tape. Does this mean don't take the rocket trades and look for the reversals because that is the type of market we are observing? NOTICE THIS: When change started and it is a second strategy, we have to take off the tape and operate on the neutral and 50% as a reference. THUS WE TURN TO A REVERSAL SIGNAL STRATEGY. I have a hunch your response is going to be slow down and just do rockets. No the thread is in progress and you are special. We need to take out some wrinkles thatâs all. Read the post where I did the "change" blow by blow. Force yourself to do it over and over until the focus is intense and your monitoring finally assimilate the signals from the indicator sources. Five times of non-disturbed effort will be required. Once you stop getting new insights you are there. What this is: is like riding in a space station going over the earth. There are "continuations" like continents and "change" like oceans. As you sit there in a rocket (the market one) over a continent, you see that an ocean is coming up soon. So you switch drawers, and "Be Prepared". Take five laps around the earth looking at the posts that cover the day. Highlight in three colors at least one for each lap and two with just ball point ticks. this will iron it out. Do it. I am taking people to a new place. It takes a 1,000 picture stories, tons of parables, and even some lighter fluid on occasion. You cannot imagine how hard it is to destroy the overbought immediate exit myth on stoc. I taped it to death by making people look at it and never see the divergence. For you, it will happen. You will get to belief by "seeing" the sequences and transitions. They will appear in your minds eye over and over for years to come. The learning process I lecture on a theory of learning to the faculty of the Department Of Psychiatry in Lancing. To risk the opportunity to learn and then behave accordingly is a tough trip. Here some do and some don't. A column represents the view a person has of the subject to be learned. Walk around it. Damn, that is a big column. Walk away. The person didn't see the column properly at all. It is much bigger ..taller wider and deeper. It is always this way. Before you learn, you do not know how big what you are learning really is. ASIDE: A possible choice: I don't believe I can learn this. Hey man that guy over there is telling you how to do it. I don't think so. Once a person is given the chance to make a first step, then it may be possible. In formal settings all that is required is for the person to arrive and consider one thing. The single thing is to consider is: Doing the first lesson. Take the first step. My theory allows two people, teacher and learner to do a negotiation. They negotiate the height of the first step. (you get a big one..lol) Here the height is making money from the get go. I arrange the lesson, you make the money. Look at what you said.. Importantly you said that I will tell you to just trade rockets. Hey that is the first lesson .....you already got that message clearly......but I am asking you to iron out wrinkles to jump start.. What a lesson IS, is called a first success for me. There is only one way to do the subject column that was first seen and, then, finally the real subject column that is there. You do it a success at a time. I wrecked the Princeton testing services college SAT's. I have deltas of 100 % samples over 8 years that show an average 1.23 sigma per post test shift in aptitude on a +/- three sigma curve of the largest referent test sample in the world. Students I worked with could do the test over twice as fast as the time permitted as well. Here is my point. I am making this possible for you and you are doing it. You will get beliefs that are invincible and you behavior will apply these to make you very rich. QED. As I unfold how reality works in learning and making money, more and more people are going to get the picture that this stuff is the real McCoy. When you get through the task of five laps on my posts for todayâs market, you will see that you can never get back to where you were. People here who have their own lesson plan rolling are adapting stuff, fit pieces in and taking some out, doing iterative refinements on the substantive content of their approach and filling voids and tossing redundancies out. The sequence is be â¦.do..... have. If I give it to you (so you have it) you never get to " be" (believe and behave). So I build you into success with doing successes. You BE it ...you Do it ...and you HAVE it. Doing it is not meaningless. BE DO HAVE. The Tape. Because now we see two separate strategies for use on the market and we see when they apply, we can open up for regular business hours instead of PT operations. I needed to hide the "change" stuff and the pseudo change stuff with tape temporarily. I showed only the "continuation" modus. It is exit /entry oriented exclusively. Were I to take the fifteen most frequently used algorithms or approaches in use in ET now, I would find very few non-"continuation" strategies. And you can see how the 15 would be ranked according to performance. Measures that come up are the "drawdown", chop losing, stop outs, surprises, etc stuff. Notice that the "change" drawer applies to a lot of this stuff. We can now use the 80/20 band to generate "changeâ modus signal sets. Think back about the VDU introduction. I have been slipping in momentum stuff behind it too. (not in time sequences but topically) By taking five laps through my todayâs posts, you will see the sequences and you will add some 50% and MACD neutral notes on signals from those for the :change" drawer. Today I separated the "continuationâ posts from the âchangeâ posts. This shows you that each is a substantial portion. Segments of profits come from each. We get trends at differing paces now; meaning we "see" different paces now. When you have the tape off the 80/20 you immediately see a different world. A reversal strategy is required here. For us we clamp onto either "continuation" or "change" we whip out the drawer full of tools. and we continually extract money from the market. Here is one small specific (huge, in fact) example. Draw down. Draw down is the name of a way to lose money, I think. People incorporate it in their approaches. Risk management devolves around stuff like draw down. These people are using busted stuff somehow. How do you turn a string of 15% winners into a 8% annual ROI. You continue to hold stocks that are in draw down and list their current value to calculate the ROI. What we will do is change drawers and, then, go into a reversal strategy. We use draw down as a money maker by flipping to the right side of the trade and making money both ways. You see retracements etc as corrollaries to this. You now see that some algorithms focus on "contrarian" signals only. All of this has a name in the baking industry. Half baking is what these people all do. It is hard to spread butter on half-baked profits. We are going to operate in the "well done" arena. I am just explaining that we use "all nine yards". That is a full bolt of material. Now you can actually skim though stuff that is called an approach and look into why it has weaknesses. The missing ingredient of not being able to change strategies (or even have two in the first place) is a severe handicap. So we have erased the saying: "Damn, the market went against me." If a person enters during a change period using a "Continuation" strategy, he has a problem that is there but not too severe. He misses the flip (reversal) and only exits. Last point. Look at moving average crossover strategies and figure out what is heuristically wrong. Why are they a dilemma for optimizing money velocity strategies? Have fun you are in a new place.
am trades AM trades Long 9:46 @98.04 tried to anticipate the rocket cover 9:51 @97.92 came off and covered for a loss Long 10:04 @98.12 looked for the rocket to form, waited for the Price to break previous top (last 3 5min bars had the same top) cover 10.21 @97.98 gave myself more than i planned on because when I reached my stop I was a little above my channel line long 10:30 @97.98 VDU break out failed right when 'suspicous package outside the UN' anouncement came across the squawk box. Has anyone tried trading this system both on the E-minis and the SPYs. (yes there are people doing this) Posted by bundlemaker on 06-26-03 10:34 AM: Jack, how about a bundle fix, I made the same anticapation this am as crescit, around 9:40. I'm seeing these setups work out on past history (ie looking at old charts), but it seems not getting the feel when in real time. I'd like to be more patient with holding when price is going against me, but that seems to bolox up my money management. Any hints? Super chart and such a clean example on the 1 min. If you are up to the level of slaloming this is good stuff to make a note of. I am working on setting up stuff in the journal (Tool Box). the edit on this will complement the tool box. for a systemic approach I will call tool box stuff structure and include the market structure as part of the environment. The edit is going to be mixed up chronologically so that the process is best defined on a lot of levels. Systemmic results can be quan and qual later after we see how well transference is going. I use "Greenspans" in other forums; here, I will pick a few people as different performance standards. Quote from icarus618: Jack, Having a complete toolbox might have been handy this morning, as I found myself on the wrong side of a BO while slaloming what looked to me to be congestion. In light of Wednesday PM, I was in continuation mode and looking for CCC. Any suggestions? **** There is a discontinuity from close to next open. Cover this two ways: do your graphics on the slowest fractal possible for market formations. (The key is getting a trend tape, primarily; if tape is not possible do channels that are interday as first effort and go to pennants as next order.) This can be reflective stuff after close and projections often work. second, at open, you are focussed on the sync. You went out in the PM of course, and now you are reentering to make money again. You secondary focus is the consideration of "Did the formations keep any continuity as a consequence of the absence of a change on the market operating point." The above is what is happening to you as you ease into an excellent consciousness. You are, at open, getting several levels of stuff straightened out. We day trade to keep the margin leverage twice as high by taking out the over night risk. sometimes there is no overnight causal factors re risk. But we do not hold over anyway because or application of capital is twice as great by not holding. I've also been thinking about how I too can produce Tomorrow's Paper Today. On the attached chart I've made an attempt. I would be grateful for any comments. **** This was not an attempt. It is the real McCoy. Not an ounce more of stepping over the line and extrapolating into new stuff. you let the day begin (See above) and you see it fill out your best effort to "see". For two days we have had some really strong stuff in the market environment. You will see some threads start up to deal with it soon when people catch on. We always have our eyes pealed. When you set up channels and see the price driving against it on the "away" side, then there is news coming that reinforces the trend. It is not quite on the street. I have more citations with equities that come from BO's but it is not impossible to stay out of trouble if you add to holdings when the "away" side is really going well (pushing the envelope) See "climax runs" in googling. Yesterday we went into "long" push. Today it has been a "short" push. Our tool box handles this. You can actually see icarus post on this biginning of the "short" push. We all know the news basis for this which is OT here. In commodities there are producers and comercials. for futures indexes the financial industry is a "commercial". Their "puts" can really push "short" trends under way. Posted by nwbprop on 06-28-03 12:37 PM: Quote from Magna: nwbprop, thanks for posting your chart, the way people annotate charts always helps me see how they were thinking about the various patterns. A few questions to make sure I understand your notes: 1. You've marked the initial "centering" period. Did you bracket this for bo (and, therefore, catch the very early part of the move down)? 2. Right after that centering you marked one bar as "volume spike BO down". If you did not bracket the centering period did you enter immediately after the high volume 1-min spike? 3. On the "traverse failure" that you marked, did you exit the short on the next (doji) bar or just mentally notate the failure? 4. For the remainder of your chart you've marked "CCC, slaloming". As I don't ski I've never quite understood the slaloming concept. Does that mean you stayed in your short all that time and didn't exit after the traverse failure? Does slaloming mean riding out all the sideways movement anticipating continuation in the direction prior to the CCC? Thanks again for your chart, very helpful. 1. I was still in quasi slaloming mode. BUT, I ALWAYS LOOK FOR VOLUME SPIKES. especially after midday. Jack stresses the PM start using volume as the indicator. 2. Yes, i was short as soon as volume spike down. I was looking for stochs to go to a continuation mode(which occured). 3. Yes, i did cover my short and reversed long because it failed to traverse the channel on the second pt 3. Jack again stresses this as the end of continuation mode. Turning into sloloming mode. 4. In this case, i was still long from failure to traverse, then i shorted at top of ccc, then i covered and got long at bottom of ccc. The objective is to get short and long every traverse(many traverses) of the ccc.I still am not Exactly sure where the top and bottom of the ccc is but i have an inkling that it happens at market opertaing points. Market operating points to me(not clear to me yet) are points like the first poit3, second point3 , low of the day, high of the day, the point at which the price reverses to the other side of the channel, points where there were previously turning points, etc... I hope jack adds slaloming too our tool box beacuse i am not sure where exactly to get short or long in the ccc. sometimes i get short at the wrong point, see it go up 10 cents to the next operating point(1st pt3), only to be the top of the ccc and then going down to whre i thought it would originally have gone. I thnk volume has a lot to do with finding the right opearting point but i am sure jack is going to enlighten us when the time is right. Just some more thoughts on operating points. I think operating points are thier to be either change(reversal) or busted through(continuation). i think volume is what shows us what the market wants to do. I am still unclear about operarting points so this may be wrong. Friday was my best day ever trading the spys. I made a 149 cents or 15 pts. This is not typical of what i have done but i hope more days like these are too come. Trades Posted by vorzo on 06-28-03 11:47 PM: week update Time is still in short supply Traded Thu and Fri - paper of course Thu #1 long rocket 10:03 977.50 10:18 sell 977.00 failure to traverse -> down vol picking up -0.50 #2 failed rocket -> MACD reversal 10:31 short 974.75 10:46 cover 974.25 intrabar rocket failed at 10:35 -> failure to traverse +0.50 Hesitated with entry because MACD x occured after rocket failed. Day 0.00 Fri #1 long rocket -> hod bo 10:28 long 985.00 11:11 sell 986.50 +1.50 #2 short rocket 13:30 short 980.75 13:53 cover 974.75 failure to traverse. What a selloff - tape was on 5m, channel on 1m +6.00 Day +7.50 Week: 2 days/4 trades/+7.50
July Preface July is a long month for posts. There are many powerful and positive interactions among those working hard. As usual, I have deleted the extraineous stuff. There is another element of posts in the thread. These focus on the uselessness of the approach. The debate over leaving them in is based upon the points they raise by persons who express either myths, or commonly acknowledged mistakes that people make. I will come up with an organized set of myths and common mistakes that are widely accepted by experts. So I am deleting this stuff to keep the pro-active focus of those working here. July Posts Re: Indicators Quote from jrs3: Your comment about stochastic is correct, they can stay overbought for some time. On the other hand add a trend following indicator to stochastic as a filter will help solve that. I no traders who use only price action and volume along with patterns to make their decisions. This is fine, but since their are many traders and instutions who follow trend indicators, it is un wise to ignor them. I am in total support of what you say, here we use the absolute MACD and the relative STOC. A few months ago I was going to shift the relatavistic one a little bit as time went by, but I now see that hanging in there with the 14, 1,3 will get fewer people in trouble with entries fro making money. I am oriented to slaloming which will soon become the modus for most. The post Labor day groove will be to have us knocking down profits for real daily. Quote from nwbprop: Jack, I was trying to figure out sequences for market paces and the only ones i can think of are Fast pace(rocket) too no pace(ccc)and vice versa from no pace(ccc, more centering) to fast pace(rocket). What is the sequence when the market goes from or too slow or medium paces? Sometimes i think i may see a sequence of slow/medium(upward pennant) to fast rocket short but i am not sure. Can't wait till apres labor day grooving. Your post is a crucial one. You have made an important connection. As the market operates it is dynamic and not static. The clock ticks and the bars (price and volume) go up on the chart in a uniform presentation of data to us. The data is inserted into indicators as well. What we see is named by common consent so we can communicate about it to each other. You are acquiring a set of major names already. When I get a place to continue, I will comment on sequences for each fractal (seven). What you will see appear are natural lists of what is happening (name stuff) why it rolls out the way it does (the process of the market) and how we make money with this information. Here I simply request that people keep lists of sequences. I check all posts for them because then I know the person's thinking better. My requests usuually go unheeded until a person makes a shot of money by seeing subconsciously, then consciously the sequence that made the money. there are people clinging to simple sequences all over ET; they have "keepers" and they think they are "edges". The sequences you will make for yourself or I will give to you soon, will change it all for you. Your post is a magic one for me. Pace is showing up for you. If we looked on the 5 min at a rocket, we could make a list of the rocket doing stuff. We could name things happening on price, volume, MACD and STOC. It is a barbershop quartet singing to us. I want you to list what happens. We will see that different paces have different sequence adjustments occurring. What is there to see and do is get all the way to "driving" with sequences and recognizing that little anomolies are the key to what is conming up next. i call them flaws because it is familiar to all traders under the topic "what when wrong with that trade?" Flaws are cell "blockers" where a cell is a place where the market maytry to go to next. Scrimmaging is important in many games. If we have a play going down, for sure something is going to end it. If you see the sequence of the play and you are a good cameraman, the public gets to see how the play was completed or screwed upby the other side. In making money, you are a cameraman and more important, you have a chance to see what messes up stuff and specifically what the countermeasure is that you could take to turn the situation into a favorable one to get the most out of the situation. We will get the names down for events. we will see what their natural combinations are and how they sequence. We will discover that there are a few flaws (KISS begins here) that really let us ace the rest of the crowd during the transitions during a profit building sequence and also from one profit taking event to the next. My goal during the beginner rocket building successes is to increase the length of people's attention and the depth as well. naturally I have to bury myths along with this. So I use things like "entwining" to describe the perfect accumulation of profits. Rockets are the first sequences. If a rocket doesn't pop you have an iceberg which is another sequence(s). Icebergs vary too. The easiest perceived sequence is the CCC. This sequence links on to fast paced stuff that hits support or resistance levels. You can start with CCC. Congestion (a lateral channel), convergence (a truncated symmetric pennant), and centering (pennant). what chunks them (divides the ccc into athree part sequence) is found by noting the other things than price formation. Gee Whiz you find volume stuff can be named and those named things in the list you make come ahead of the pice names (and after them too). Here you discover raw unadulterated power. Your post says you are gaining a consciousness. Ordinarily I let people have the brief discovery experience of putting together sequences and then deepening them with details and seeing branches form and then seeing the sequence come back on itself. They also see that things are corralled by flaws. discovering the flaws are like discovering how the immune system works. when we see a flaw we know that a path is blocked and that there are onlt so many possibilites as alternatives. When you run out of alternatives you know whats next. We just turn predicting inside out to win continually. I will be using momentum stuff for getting the pace gradations on the table. We will use what we have on our display to understand momentum. This is important as we get to using the two drawers adroitly. I feel that as we make low risk money first and it piles up steadily, then we can play in riskier places and have more tools to kill the risks. Always note that what you can discover instead of being told somehow makes it all more fun. A response Thanks a lot Jack. I think this post cleared up a lot of questions for me about the ouiji board. In terms of flaws that are cell blockers, i am gong to take a shot at the 2 i think i understand: For fast pace rocket too no pace(ccc), the cell blocker would be when price fails to traverse to the other side of the 2nd pt 3 channel. For no pace(ccc, more centering) too fast pace rocket, the cell blocker would be centering when there is no volume and price movement. What follows is volume above noise(signal) which continues and drives price. these may be wrong, just trying to give it a shot. Hopefully i got 2 cells of the 8 cell ouiji board understood. Although i find discovery of stuff fun, I would really really like to learn fast when the opportunity is there also Posted by nwbprop on 06-30-03 10:02 AM: Today i think we have been in a medium/slow pace(iceberg) and no pace(ccc). At synch we had a rocket signal long that turned into a wash. At this point i think that we were entering a medium/slow pace. Eventually, i think we might want to short on the failed rocket long. The medium/slow pace continued to traverse the channels made until around 10:40; when it failed to reach the other side of the channel. From 10:40 to 11:20 it was ccc until it hit the top side of the channel at 11:20. I might be mistaking the ccc from 10:40 to 11:20 for slow pace which would also make the origial period between 9:45 too 10:40 medium pace. just trying to reach the next level of conciousness. Any thoughts would be appreciated. Posted by nwbprop on 06-30-03 10:48 AM: Just wanted to post where i think possible C&R spots are. It seems that i get more(C&R spots divided by time) C&R spots in slower markets like ccc than fast rockets or medium pace. This might lead me to think i may be doing this wrong. You are doing it right.
Posted by CrescitEundo on 06-30-03 10:56 AM: Jack, Thank you very much for 'showing' me what you did last week. I am sure you know how much it helped me, I have change/ continuation down and was sucessfull at doing/seeing things on friday that i didn't realize i could. I am currently most confused by the stop logs. I think i see the big picture on them but I am confused by exactly where we log them. I think I understand how they work, the importance of them, and how they show us a trend is slowing. In otherwords i think i understand everything but the most basic, where to put them, (this usualy means I am way off base). I think what we log is what nwbprop had previously thought were the opperating points (point 3s stalls etc...). I also believe that he is about to post a chart with his/our idea of what they would be. "What you record on your log is price values where the price bar formations exhibit the more important values." you suggested that we should be able to get it from this post, could you give me a little jump start to help me start logging. Posted by bundlemaker on 06-30-03 01:47 PM: Working out Jacks method I thought I"d just point out some of the stuff I look at and how Jacks stuff can fit together with other patterns. Day began by noticing an opening price within yesterdays value area (value area is a market profile idea, suggesting a non trend sort of day, and testing of highs/lows by the locals) and price not at any particular s/r. As the market dropped, we had a failed break down (point A on chart) which occurred at significant support, ie. a previously defined area of support. "A" was the best long entry. The second entry I use is the "rocket" entry, which Im still getting used to. This occurred at point "B". Supporting this entry, was the observation that price re-entered todays "value area" around 976. There is an 80% that if price goes back into value area for two time periods (30 min bars) after previously being out of value area, you will reach opposite side of area. First potential exit was point "C". This is again based on the rocket trade signals. Also roughly corresponded to a previously defined s/r area. Quote from oddiduro: snip ...... Jack, could you please explain how best to deal with lateral trends? Perhaps I am missing the sloloming concept at this point. Thanks, Oddi Lets look at the picture. The general trading picture is a range of possible values. Use slow fractals to determine this and keep it is mind. Just like change of state of materials it takes a little more energy to move through that temp value. Good. Lots of causal factors appear to push values to these support or rsistance levels. Fresh news is a nice one that is usually there. A fast paced trend is the usual result. I had to force myself today to not just post "Buy" around 11:45. I have a daily channel line from APR and mid May pts 1 and 3. It climbed into view again on Friday. The market is hammering away with a lot of energy to get through it. this applies to S&P cash and SP03M. This all gives perspective. On the 5 min we get fast paced trends that run into limiting factors. The result is generally not a symmetric reversal. A hell of a lot of people see "overbought" as a signal to reverse. I do not even see "overbought". When the fast paced trend occurs you see the "entwined picture outside of the 80/20 band. as you view the trading channel Use the slowest to give you a tape if you are a beginner, if intermediate stick with you stop log fractal recording display. People who slalom are doing the intermediate thing. Hre they look for the KISS flaw. You all post it. The traverse does not go from right to left. you close the "continuation" drawer and open the reversal drawer and pull out the "Keep me on the right side of the trade tool" It is in the expert partition. You look at the sequence list and see volume fall, MACD peak (fast), then MACD peak (Slow on xover), the STOC dissappears into 80/20 band. Any and all of these are saying hit the reverse button. it is okay to wait. if you are a champ or near champ sailor you know in a tacking duel you do not spin the wheel into a tight tack. You ease into the turn to keep hull momentum and minimize the quarter wave going undr the hull transversely. (I tested with the 12 meter fund at davidson Lab in hoboken). you will be able to creme on reverses soon. This is the slalom first tack. I have set you on 5 min you can go to 1 min and then the 14,1,3 will work over shorter real time period and keep the relativiety working 5 times better than 5 min. This is a waveform time constant issue we are eliminating. As long as you are in the first segment of CCC you slalom (congestion segment). you keep on the right side of whatpeople who screw up call whipolash and chop here. They did not tack out of fast paced trend into "change" modus with a reversal. You can see right here and now that you are different and you are in the 10% group and actually you are shaving stuff off othr 10% guys. each segment of CCC is in a different cell. the transition through CCC is a slow one. and you will see that you can stay on the right side by reversing and continuing to take profits. the money velocity is fastest in the middle where the indicator lines are going through the neutral and 50% this is the time to stay relaxed. Check to see that your breathing is deep and not shallow. Sit up and let shackras be filtering between them. Fart if necessary. As the money velocity slows you are coming into a tack. when the tacks have the same spacing (they will) you are grooving making money. This is different than most methods. You are getting depth here as well as a breadth you deserve by now. So take deep breadths. Association works. when you see volume dropping below any mid levels be perpared to slaom to the sidelins as the MACD lines merge and damp to the neutral. STOC keeps at it because it is relatavistic. You are going to do this over and over. Days ago you saw some here taking more profits per day on doing other stuff better. You are getting calibrated and tuned by my pulling on you to get you to a more conscious state. Okay the convergence is visible. The bunny is winding dowm. you leave when it raches a high noice level. Not much signal being ground through the indicator maths. You go to the final tools in the "change" drawer after you put away the slaom tools. CCC is a long winded failure to breakout of S/R levels. So you anticipate a BO. Either it is a BO away from the extremes or it is another "push" to go to new ground. We do not care. No dumb, stupid, inane guessing. Just get out the "bracket" stuff and place it and wait for a successful BO or a beginning and then a slalom on the "failure" to BO. We have all bases covered in any event. You will see how it all works before Labor day. Okay, prof, let me see if I get this concept. As I recall, DU on the 5 min is at > 5000 trades per bar. At this point we switch to the 1 min chart and start the slolom process using the 14,1,3 stoc. When the stoc starts to spend alot of time in the tape and momentum and acceleration approach 0 on the MACD, we standby and wait for the immenent reversal, which is based on a fractal breakout of the channel on the 1 min chart. Once established, we go back the 5 min chart.