Getting down and dirty is where the rubber meets the road ...

Discussion in 'Strategy Building' started by charts, Mar 31, 2010.

  1. Thanks for the annotated charts and the 10 days of clean charts.

    Allen thanks for your ES chart as well.

    I believe the modus I will maintain is to critque and add drills that address the critique, all in a trading context.

    Each subject vis a vis critiques will be classified as well. In this way we keep current on what the mind is requesting to help it fill in the inference spectrum.

    Allen's illustrations show how cases are codified in yellow containers and he also shows the lateral case as a blue box container. the bar timing is also included. If a bar shows 15"00 for a bar that is the END of the bar time.

    The pattern is contained in a parallelogram on each fractal level. Three points determine a parallelogram as discussed in a thread on channels. A parallelogram is often called a channel. I use a heirarchy of names for each of the nested fractalls. As you log the columns you will find that each column has a set of nomenclature and there is a lot of common nomenclature. I use quickly scribable symbols as well. C is continue for me and X is change, for example.

    Frenchfry will succeed at annotating soon and he can use Allen's illustrations to help out as he learns. Another poster who has contributed information is Mr. Black. What is nice about his workmanship is that he correlates trades with the annotations on his charts. Mr. Black is European and he trades the US market.

    The start up transition in annotating is a building process and as time passes the charts become very comprehensive in terms of degapped nested fractal. this is when "continuity of the markets arrives consciously for the trader.

    As we see annotation can use weighted and color coded line segments. cloning/duplicating permits both items to be handled automatically.
    #51     Apr 14, 2010
  2. AllenW


    O.K.---I figured out the deal with the VE in the blue elipse---the last VE bar did not end in the zone even though the previous one did---we use the last VE. So therefore we are not expecting M1 and M2
    The seemingly broken pattern at the red arrow still bugs me---it probably has something to do with the FTP
    #52     Apr 14, 2010
  3. Right Click in the white space of your chart, and Left Click, 'Edit Chart Settings.' Make sure all the Functions in your 'Price Pane' have a check in their respective boxes. For some reason, Pennants fail to highlight yellow on your chart.

    - Spydertrader
    #53     Apr 14, 2010
  4. We're not?
    #54     Apr 14, 2010
    #55     Apr 14, 2010
  6. critique.

    doing carry over from day to day is important. the platform you use allows for automatic degapping and that is a time saver as long as you carry over the three parallelograms.


    1. Practise manual carryovers to be sure to create a set of carry over rules for annotating the chart. Do not worry about getting in on the first bar. We will soon see how adding contracts from profits starting at a mimimum level gets a person to a good income level in a short while.

    You started the day inthree patterns that were carried over from the prior day.


    1. Set up a log that has three colums adjacent to each other so you can list the oderof events for each fractal.

    2. Check always as you log that you are not "jumping fractals" as you log.

    3. When posting glance to see if you are noting the order of events correctly after you finsh the typing.

    You can build very comprehensively on you MADA efforts.

    Bar 1 and bar 2 form a hitch on your chart. The bars show the range of volatility that can come from the range of volume.


    1. At the top of your log write in the fractal event that begins the day on all three columns. The correct logging is the debriefing status at the end of the prior day.

    On the trading fractal you were in a R2R of a short pattern on the trading fractal pattern. On the fast fractal you were completing a 2r of a r2r 2b 2r. You are not annotaing the fast fractal.


    1. Learn to annotate the fastest observable fractal and set the scale on your chart so that 2 points is the scaling set of values. Always set your chart height to show 18 points on the 5 minute price chart. this is a biblical setting for the scaling. By keeping it scaled the same way ALL of the time, your mind becomes calibrated to market bar volatility and the slope of the parallelograms. you can see easily each tick change if and when one occurs.

    So you are following the order of events beginning on the trading fractal and not following the ordr of events on the fast fractal. Above I eliminate those considerations.

    This means you can see the pattern on the fast fractal as you trade the trading fractal. The day starts with the first move of the trading fractal being completed. Those trading on the trading fractal enter the opening moments short and they look for th order of events to show the 2B and then the @R of the trading fractal. This is six moves on the fast fractal.

    Red volume is dominant through this period. Black volume is non dominant.


    1. build fractals from the observable forming pattern; you have the time to do this and log it too.

    2. Always check to see if you are jumping fractals starting with column shifts in your log. No column shifts + No fractal jumping.

    3. go back to bar 71 of prior day and notice for what you annotated you missed the VE on th trading fractal. The automatic lateral annotation informs you taht you will be exiting the lateral and you used the correct FTT (not annotated) to begin the short trading fractal and all faster fractals.

    4. your internal annotaor has a flaw; it missed the last stick. the flaw has to do with how the stich gets mutated from the beginning of the second internal bar. Check to see if the volume criterai is inclusive enough as well.

    5. bar 81 was an OB that was automated automatically this ended the fast fractal ftt at the top and gave you a portion of the following 2b on a fast fractal level. you debrief and note you are finishing 2b. since none of this is annotaed you are hanging out in the breeze.

    FTT of the trading fractal is on bar 2 where you treat all internal cases as one bar only. the dashed lines you drew is the slow fractal that contains the trading fractals; this makes bar 2 point 2 on the slow fractal.

    The green arrow is a VE on the trading fractal levle and you could not observe the fast fractal over the three black bars. You when long on bar two using the trading fractal. for ES we simply zip over to the YM to observe the fast fractal three moves. By logging the YM 2 minute, you always have a leading indicator of ES rolling, since the YM leads the ES.


    1. log and annotate the YM 2 min chart. Put this column on your log next to the fast fractal ES column. the entries will nearly always match. divide the YM column mannually when a sub sub fractal is evident on the YM.

    Bar 4 begins an R@R 2B 2R trading fractal.
    this means on the trading fractal level you took a short, then a long and then you went short @ the VE of the bar 4 and you were looking for point 2 and not a M1 and M2. Here we deal with granularity. you consider and log whther the close is in the "zone". Either way you are short going to point 2 of the trading fractal. If I am knocking off 40 trades a day, I go for dealing with a possible M1 and M2. you have another internal yellow box annotation failure at this point as well. you did not get a sym on bar 4-5.

    A major clue on M1 and M@ is the non dom and dom sequence. you SEE the RTL being broken and the dom is now red volume so you know that you know the short is under way and you are short. you know that you know it will be several bars before an FTT occurs. Have a smoke or just do housekeeping. Put a new eraser on your automatic HB pencil or check the remaining lead length.

    Make a note to reload your library as well.

    I skip to bars 9 and 10 so I can deal with the two consecutive VE's on the chort trading fractal. note that the second VE is very soon in the bar (10) and note you have decreasing volume. this is a IBGS for sure and you take profits and go long. you leave the zone post haste.

    you then sit around for over an hour makin bacon.

    congratulations, you are now one level of skill higher in your trading. you can take a break at close and come back in 2 1/2 hours and trade the K200 to finish out your day.
    #56     Apr 14, 2010
  7. AllenW


    Obviously a retrace and resumption can occur after a given VE but I would only "expect" it to happen with a close beyond the LTL.
    Am I mistaken?
    #57     Apr 14, 2010
  8. AllenW


    Yes---it did get turned off---thanks!
    Does the pennant and the IBGS reset the context?
    #58     Apr 14, 2010
  9. hi frenchfry.

    Think about the drill of annotating charts from the bottom up.

    You will see most fast fractals go through four moves on volume and they have three moves on price that are related.

    There are messy times. So keep making messes.

    As you do, then you will begin to see questions from your mind to answer. Getting the answers is what you are doing as you annotate.

    As you find ftt's you will recognize these are points on the trading fractal.

    you have to treat internal cases of two bars as one bar. Since your platform doesn't do the cases as yellow boxes, you have to "box them too. Pour some yellow in the box. This way, you are "looking for yellows".

    For ATS coding the yellow box is a logic circuit. Programmers will recognize that the logic is used for timing when other logic functions get done in the ATS. Programmers also see the number of "recods" that are bui;lding and they also see the heirarchy of records. All of these things are logic functions that deal with market timing and one other function in prgramming an ATS. Obviously, this is why the work of Lo et al didn't work. In his pattern research example you saw him generate 17 OB's in 77 bars. He was out of the ball park from day one. He averaged 7 signals every five years on daily charts for patterns. not having the ability to do ATS coding, is a serious handicap at MIT so far.

    So in the past few days I've graduated from a walker to crutches to one crutch. There is an agreement that in 1954 the guys who set my left leg fracture set up a situation that can cause spurs on ankle bones later in life. Eyewise I only have three more weeks of steriods....and permanent regime of adding atrificial tears. LOL. My eye stroke (their term for extended lack of O two due to body temperature being lowered for a while) in the fifties, caused some rather tenuous retina sensing in one eye. LOL....

    Anyway, frenchfry you are making progress. All the drills mentioned in the response to Allen apply to you. as you report your charts daily, you will be able to see the improvements really setting in. As you do, I will focus on getting repeated errors critiqued and eliminated.

    We dealt withVE's today and did not deal with the associated acceleration. we will bear down on that as the nested fractals get in synch with each other.

    acceleration occurs on increasing market PACE usually.

    extension occurs when the pace is MODERATE and after the PACE has slowed.

    Fanning occurs in the lower PACE ranges and at tyis time you will be experiencing a high ratio of internals compared to translation.

    By now you see that making money goes on continually and you can be in the market making that money as long as you know that you know.

    As you review the 9 tables of the Sweeps Chart you see that it isnot necessary in Analysis to go any farther than getting CONTINUATION which is almost all the time on a MADA cycle.

    You are also finding out on the rows of your log how a bar mutates to its final relationship to the prior bar. by this effort, you seehow calming doing MADA is and how mentally, thye market is streching out more and more. Translation: you are finding that you do have time to keep knowing that you know.

    FFF, so far in your annotating, you have not done enough drills to be able to annotate in real time.

    real time annotating is how trading is done. The right third of the chart is where projections of the annotating is done. during annotation you are looking for P's and T's on volume. 12 seconds into a bar the PRV shadow tells you the volume realtionship to the prior bar.

    as you watch the actual volume accumulate, you see the gap between the shadow final volume close more and more. as you watch you see either surges or luls in actual volume accumulating. there is a direct connection to the price bar's rpogress in muyating as the bar forms.

    All of these rhythmic things will begin to remove the suddeness of trading from the picture. You will go about your annotating and logging with plenty of time to begin to looki at other indicators, especially the leading indicaotrs of price.

    by setting up your displays on a constant scaling basis you mind will begin to calibrate itself. This is a smoothing factor, mentally.

    On the three fractals only some many parallelogram patterns are completed in a day. The ratio, fractal to fractal, we now know is three to one. This is not a time measure but it IS an order of events measure. s you see volume provides the market's PACE. Acceleration, extension and fanning are a consequence of the market PACE zones.

    trading follows the daily catenary of volume. streching the order of events happens as volume PACE declines. The oder of events squeezes as volume PACE increases.

    reading my posts is relatively meaningless. A potential trader has to do gaining of experience in the most earnest way he can.

    drills create inference and inference is what matches sensing to know that you know. Messing up chart after chart is the name of he game. when you do your mind steps into the picture and raises questions. these are the gaps in inference. they get filled rather rapidly as you do drills. weekends are great for doing drills.
    #59     Apr 14, 2010
  10. treat bars that are internals as one bar.

    do annotations accrdingly.

    the first 8 bars are: sym FTP, FBP, and sym as taken as pairs of bars.

    It is worde if you do the adjacent bars out to bar 8.

    look at bars 1-2, 2-3, 3-4, 4-5, 5-6, 6-7 and 7-8.

    this introduces translation, stiches and OB's in between the fist mentioned set of pairs going to bar 8.


    1. draw boxes and see how the boxes overlap.

    2. learn to treat yellow boxes as one bar instead of two bars.

    Your result will be a major break though in following the market.

    I am not sure these are five minute bars since you do not have time on the horizontal axis.

    the fist step in trading is to be able to see the market.

    If you copy the boot camp of past years with NEOXX, you get 1,938 printed pages to put in a 3 ring binder to go through. For k200, we want to compress that trip.
    #60     Apr 14, 2010