the correct annotations are provided in http://www.elitetrader.com/vb/showthread.php?s=&postid=2836277#post2836277 I just copied them for my diagram.
Hi Jack, "...treat internals as one bar.... and fan....". In this example it doesn't seem to apply. Three bars creating a stich and a sym. Now I can see that there are exceptions which creates the question: When should I and when shouldn't I use that rule? Thanks.
Jack's point was that the reversal is on #37; when the price comes back to your reversal point on #39 do the wash ...
I had an apt right after I posted. Thanks for the additional intervening commentary. The thread is terrific with respect to how people can work together to make forward progress. THe SF is an outer boundary of the TF. SF helps you understand the context of market sentiment on yet one more level. at some point the drills all related to having three nested fractals become part of your mental awareness. that is why I keep mentioning the three fractals and their nesting and the order of events on all three fractals and, further, how this interrelationship of the order of events is a pragmatic companion to making money. Wyhere we are now is that the log has 12 columns and we know the leading lagging relationship of the columns as a consequence of deductive reasoning while filling in the log. Doing logs , at some point, becomes reasonable. Annotating on three levels makes it possible to fill in the log. the reason a person begins by using the trading fractal for trading is because it is between two fractals one slower, the other faster. if you are going along doing the work and you feel that you can choose between two possibilities, then you need to make a note and during debriefing, eliminate what somehow afforded you the opportunity to think you had two things from which to choose. I have to focus on bar 37 for a while to allow people to see the 15 changes that occurred on bar 37 and just what the order of events was that occurred during those 15 lines of logging. try to clarify for yourself that the bar has four parts: OHLC, the conventional order of listing the four parts. O and C are clear. the order of H or L could be any order except when you are watching and logging and annotating. The container for an ftt is built in advance and there are six lines involved. You will find as time passes that the distribution is balanced as the bar begins and there is an order in which the pairs of lines can be surpassed. If you feel all of the bar is where a reversal can occur, then you need to revisit that consideration and take it off the table, mntally, when you find out that there is an order of events that is cast in stone. The forward progress of the pattern continues and comes to an end and, then, overlap of the two patterns begins. Take a blank log sheet and fill in the 15 lines of the order of events of bar 37. Rough it out by leaving blank rows at first and fill in the events that you disciver as you put in some thought. The short cut for this is to take out the log you did and review it. Trading is not boring and there are no times when you have nothing to do. If you notice you have nothing to do, then you are missing attention demanding changes that ar slipping past you. critique. It is perfectly okay for anyone to hold the belief that losses can occur. this belif dissolves at some point where experience allows the person to no longer have losses. It is muh cheaper to not do losses from the get go. What has appeared in the space is the opening of the discussion of how a "wash" trade becomes a reversal and NOT A WHIPSAW. SCT DOES NOT INCLUDE WHIPSAW TRADING. A person does the reversal @ the ftt. From that point on he has realized profits on the prior hold and, then he is on the correct side of the market from that point on untl something changes while he is holding with a degree of unrealized profits. small note: all of bar 37 was not underconsideration and neither were any subsequent bars for do the reversal. There was a line in the sand; it happened THE WAY YOU FIND THE ftt OR FTT IS BY LOOKING AT FINER AND FINER MORE PRECISE MEASURES OF WHAT IS GOING ON. There are many many posts on this and the archives go back as far as the PC becoming part of trading. Before that look at handouts in the form of blueprints from the late 1950's onward. None of these are helpful if they are just read or reviewed. Research, reading and studying, have nothing to do with learning to trade.
Someone asked for a free lunch... Here is what I packed... From my perspective, looking at the chart snippet in question (5M) - I cannot even form a R2R (if one begins at bar 30) until bar 37. So I (personally) would not be anticipating or looking for a dominant sequence starting at 37 (to me it is NOT WMCN). Change... sure... can see it... and the market may choose to form a complete sequence there.. but (always considering context) I would ask myself which fractal I am taking action on here (if at 37). Perhaps Jack is more focused on helping the mind to see how to properly annotate each fractal in an effort to locate the one which best suits a particular trader. Some may be jumping to D and A of MADA without a rock-solid understanding of M... For a free lunch - I look to perform the routine for all visible fractals and trade the middle one - it is the one comprised of and bounded by faster fractals... EDIT: I Just saw your latest post Jack Get your free lunch here.
How the TF trader stays on the right side of the market continually We leave the ftt of bar 37 as noted in the log. A green bookmark is in place as part of housekeeping. Overlap ends @ the BO of the RTL of the TF X. X stands for the move number in the SF. Any value from 1 to a large n is possible as long as the price is withoin the existing pair of trendlines. As best we know we are long in a TF and on move FF1 of a FF. Non dominance turns to dominance as we cahnge bars log the advent of the mutations of bar 38. We have the next threemovs of the long filled in on our chart with ?'s after each point and T or P. We know the relationship of adjacent P and V bars. Translation in price is NOT backed up by the PRV. This is called a WWT. We check closer to take care of the IBGS volume of bar 37. Do this by looking at the volume accrued when the forward progress of YM then ES ceased. Draw a cicle around that volume notation and bring a pigtail down to the PRV noted for bar 38. Do Analysis, Do decision making and note WWT in the TF column and the FF column. Closure is the action. On the next MADA's you can draw the rtl and if you wish consider doing the ltl. If you are an expert, then you trade the FF's, meaning point to point on the TF. (In this case the WWT and annotating FF1 put the expert short) If you are trading as a beginner or advanced beginner, you slowly get feelings from your unconscious awareness. I know everyone is too shy to just post what is going on bar by bar as yet. On bar 39 there is a FBP followed by Xslation. These are clues coupled to a WWT with respect to volume. It has to be decreasing and it isn't. If you are trading TF, then you see the greenbookmark coming into view and you sideline. Unconsciously you are either "feeling" relief (I am out!!!) or you are feeling like you are being told that short is dominant. For up to 15 minutes the same message keeps appearing in your awareness. First you typed in NEW FTT on bar 39 and put in a green bookmark. And then you sat in non dom volume for two bars. So when does the TF trader come off the sidelines to get to a final FTT of the TF? Is it because he is too stunned to continue annotating the FF's. the chart shows stunned non annotating during this non dominant period after the dominant appearance of the NEW FTT. So sit there if you cannot annotate and make a note to learn to annotate from the un noted ftt of the FF2 which ended quite a while back. This is a crayola moment. If you use red, then you put it down. Then you pick up black and touch it to the point NEW FTT and drag it into the future by aiming for the next bar pertinent point. A TF trader needs to get into the fray if he is sidelined. On DKM 110 1 we know the RTL was not put in correctly from point 1 on bar 30. If it is corrected and we have a stitch (a two bar case), then we are looking to include the near past in the TF when NEW FTT occured or ASAP thereafter. This was done twice: first on bar 40 and then on bar 41. By bar 42, FF annotating resumes on DKM 110 1. Was it possible to have the lay of the land somewhere along the line as the day continued? I think it is possible to consider being in the market and on the right side of the market. My typing dos not make that happen. Doing MADA and annotating thoroughly and logging is how that happens. The choice is to sit and do one bar at a time in real time or make 50 prints of past days and slide a piece of cardboard to reveal bar after bar on each of the fifty sheets. Keep the log down to four pages for each sheet. This will give you 250 pages of work in a few hours. Who will you be at that point? The objective here is to become a millionaire in a short while. Usually you will remember your first million dollar day as well.