The fast fractal is set as seen on this illustration. New members (elements) are noted. Some of these are faster than the fast fractal of K200 so the H2 and its X are held through to NOT jump fractals. when bar volume has parts gong in different directions these are considered as relative sizes in a ratio and proportionally weighted by time duration. this is just a mental activity that is simple and undmanding and in a context of being "inside" the observable fractals. It is possible, according to skills, to reason through why a bar is NOT an ftt or IS an ftt. Here I have spelled that out for you. I also threw in some dots where I can reasaonably assume the reader remembrs something from the prior illustration in terms of finite set one to one relations. Drills are what builds the mind. What is in the mind are one to one relations and the rules of each of the four parts of MADA. AS you see we had over the range on two tradss on bar 1 and we loxked in profits@ pt 3 and took more than the range expansiion in profits in this illustration. The range has tripled and we are still 2 a multiple of the whole range in profit taking. So far in the day we have 1 move in on the trading fractal To complete the trading fractal has three moves. A beginner would trade the trading fractal FTT to FTT. So he is short and 1/3 of the way through a trade and he has made in unrealized profits about the daily range. He is focussed on annotating in order to see the parallelogram of the trading fractal. Do you see it? NO IT IS STILL UNSEEN IN TERMS OF ANNOTATIONS.
the trades in this illustration are fairly common and as you see market PACE is slipping lower. the advent of yellows means we are fanning for each and chacking to see if new ftt's occur. when they do we know to reverse on them and swet up the beginning of a new move on the various appropriate fractals. we start to learn by thoroughly annotating. We keep track of the mutations of the forming bar and relate that the the time when the H! and H2 are applying. Most of the time we are in H1 and that is the C time where profits are accumulating. So at this point you have about all of the members usually used in expert trading to know that you know and to always be on the correct side of the market. what I did was use the glossary of logging to go through the stages of seeing H! come to a close and H2 come into play. as you see trading is fairly leisurely since most of the time you are just extracting the market's offer. for several bars we go throught the repition of staying on the correct side of the market and handling the opening movement of the market according to a short Sentiment of the market. the range expasion slows and pairs of trades keep adding to the multiple of the daily range. Over 10 days ago we embarked on fast tracking annotating those days. then we logged all the annotations to see three levels of fractals nested using just EOB cases. Had that been done then trading would have become a natural routine using MADA. We also could have been doing ES and the DAX daily to buld the mind by doing drills. I can imagine what it is like for persons who do induction instead of deduction with binary vectors. Their minds become scrambled eggs aftr a while.
trading is not a chicken and egg thing. It is a deductive process (and NOT inductive AT ALL) where the MADA routine replaces the traditional CW's OODA "betting" routine. the rules of the routine, when used, grow the mind by adding inference which becomes organized as differentiation. It is identical to the process of learn to drive a car and driving a car with varying degrees of skill. Most people can do trading or driving as a "unconscious competence IF THEY PUT IN THE WORK OF THE DRILLS. Most people are just too smart to do drills to learn to trade. MADA is used all the time and repeated cycles take place during a bar. All trades are based on the one to one correspondence of the elements of the finite sets of each stage of MADA. You are always in a parallelogram which acts as a container of the cases of the adjacent bars. The forming bar slowly mutates from case to case. The bar also goes to limits of the parallelograms. I would say most people cannot even reason through why the use of parallelograms. This comes under the heading of mental laziness. So in this thread up to now I have departed from our normal approach of suggesting that people reason their way to success by doing critical thinking. So far we have done what people do in a geometry class which is deductive reasoning. Why cannot trading become more difficult than scholastic level education? Market granularity of instruments and market participation context answer the question as to why such simplicity. As you see their is now quite a bit to the sophisitcation of the "betting" of the financial industry. The cspan hearings under four topics shows us all how the undrpinnings of the industry is sales and marketing. The humor of the securitization of derivatives all comes down to the irrationality of betting and protecting bets. The CEO of GS only got a 9 million dollar bonus on his salary and perks and options. GS proved the instruments became illiquid and M to M was just a way to keep near "home".... lol The retail trader can handle 1...10... 50.... 100.... 500 contracts trading with SCT as a intermediate level trader. There is nothing too difficult about doing partial fills as the contract sizing increases above intermediate. I think the speed of price in markets is relatively slow compared to the human mind doing a routine. The question of when to do a trade is told to you by the market. there is a window that opens, remains open and closes. You can do the trade or partial fills all during that time. Refer to past posts of prints that show the succession of partial fills in the window.
The short, long, short probably do not seem reasonable to most traders. The reasons they have for not accepting where the ellipses are placed have to do with their "perception". what most of these people would do is trade with entries and exits. They continually feel like doing a trade at a time and that means they "enter" and then they "exit". They get to the sidelines and have a sense of relief. These people are usually freaked out all during the "hold" of any entry after their entry. If a person is still "stuck with entry/exit" they would feel even worse risking reversing on the first FTT they came to. They are not going to do that (link trades). What happens after the exit is that the person is missing the next long and he is going to just sit there on the sidelines for a good portion of the day. Then he is going to fake himself out and have a losing long entry/exit trade. this givves up some previously earned profits. If a person takes the long as a quick reentry after taking profits, then he is not going to trade the moves within the long and he is going to come closer and closer to the GREEN point of failure of the long. He washes. and recounts to himself that he sat there at "risk" as the trade didn't work out. On this day you want to pin me down on the beginner trades; I put in what is possible for a beginner to do. But it is still not reasonable to mostly anyone that choosing the last green new FTT is something that a person could do. After all, what makes the last FTT different than all the rest? Suppose he knows. Suppose he doesn't know. As it turns out there are two groups of people that could fall into these categories. If you think about it, hows does a person go from one category to another? The answer to most trading questions is the same. Answers are found by earnestly acquiring skills through doing drills. Once I wrote down 10 pages of stuff for a person to look at on the YM to help him trade the ES. There was a page four. When it was redone on a graphic pane, it became clean page 4. When a person uses clean page 4, he is in the group that knows and no longer in the group that doesn't know. So up until that time, most beginners cannot take the step to do reversal trading simply out of fear of something or other. Actually, you see that throughout the industry all the way up and past GS, everyone mostly trades as a simplton using induction. At some point, the thinking process deals scientifically. there in this world, things are done in a way to gets results that forward the science at hand. A person does not have to use science if he chooses to be other than purposeful or earnest. these two things are the shortest distance between two points. WWT happened as an application of the null hypothesis. One aspect of life is having immunity to the behavior of others. That is where PEP and its applications came from. Extracting capital out of pools is done regardless of others in any way. How much depends upon the mind's growth. The deal for making money is to have a differentiated mind. I certainly cheated by creating tooling that was just pragmatic and efficient too. But on the other hand, it was worth taking the deductive process down to the granularity of the markets. This eliminated noise and anomalies. It did not require going past scholastic math. And there is no requirement for speedy computers to make money by taking all of the market's offer.
Jack, thank you for taking so much time to give us another glimpse in the way you see the market. Those circles on the beginner chart, and your MADA sets are obvious to your differentiated mind, so you can carve the best turning points just choosing if you do it at beginner, advanced or expert level. In asking you about the trading points I was looking for two things: 2. Getting a feeling of where on those best bars (previous bar BO, bar open, sub or tape RTL BO, etc.), or the earliest subsequent bar after the optimum one, would you hit T if your mind were less differentiated and you didn't see the optimum points. 1. Getting recommendations for specific drills to help in further differentiating my mind when dealing with the P,V based MADA.
As you see this post is just a repeat of prior posts and it has a "do it yourself" tabbing exercise (drill on how learning works) so what has been posted can become useful.
To identify the trading fractal FTT it is necessary to know that one is drawing correctly the three faster fractals (dom, non-dom, dom), so that one can know that one is travelling from pt3 to FTT. This clearly requires the correct grouping of bars in accordance with a convention that uses the 9 cases. Although we treat internals as âone barâ, some guidance, with examples, would be welcome for how to handle sequential internals. E.g. the bars following 10:50 and 12:25 And a couple of questions: Q1. On the attached chart, are the thick dashed containers âfaster fractalsâ or âtrading fractalsâ? Q2. Having identified the FTT at 15:10 I was expecting a long container, but the 15:40 bar (labelled âoopsâ) went lower than my p1. Would this have been a case of simply reversing to get on the correct side (with a small loss) or was there something to suggest that 15:10 was not an FTT?
Hi dkm, is there a specific reason why you put the FTTs where you put them on your charts? Or why are those visible but not others? In your example I see that you drew the down container starting from 15.25 but you didn't label the bar at that time as an FTT of your black container which started at 15.10. Your "oops" bar seems to be the break out bar of that black container. Greetings.
I have adjusted the FTT positions on the attached chart. If you think that there are more then perhaps you could post a chart. The problem with the container starting at 15:10 is that it didn't appear to have dom-nondom-dom moves before price began the short container from 15:25.