perfect. put it on your refrigerator. add in another shape: the OB. Look at your instructor's sheet where he shows an OB in two ways on the right side of the top row. We will be using his convention for color. notice he adds alot of extra stuff. An RTL often appears. This is the sentiment sloping line. the slope makes it a vector for us and in our minds.
Price cases determine when you can measure the independent variable. If the second bar is not translation, then it is one of the 8 cases where you may have to wait to measure. We are using a five minute parcel of information since most traders do. Assume the display encloses the two bar cases that are "wait's". this means you do not do further work as you monitor and analyze for about 50% of the 81 bars. As this time is perfectly known, you will find the emotional shift beginning as a day goes by. since you now know you know 50% of the time, your mind recognizes it is going to enjoy making money while trading. So learning the cases is done by your platform and each case that occurs is there showing and you use this moment to WAIT. Lets concentrate on the caveats for the above. the log has several groups of columns and 81 rows. the cases are placed by name in the Form column. you have sensing operators and you use the shape one to see the form and you know the specific case name. you fill it in. caveat 1. when the second bar of a WAIT has a larger volume than the first bar of a Wait, you write UL in the arrow column. UL means Use Larger. If you have a UL, then you measure volume just as you would when an XB or XR transition bars occurs. I want you to place the UL on the first bar of a wait as well if it applies. then you draw and arrow up to the UL and draw a line through the volume columns and place "Wait" in the second bar row. this is doing mental push ups to remind you that you always know you know. so this post is very important and takes your mind and its viewpoint to a place called "you always know that you know". there is a thraead going on now about how tomorrow begins. all kinds of bullshit answers are being posted by people who DO NOT "know that they know" all of the time. You are now going to go from a mystery state to a knowing state Trading is a place where no one can bullshit themselves but most everyone does.. Three of us know we know the ten cases. OS100, you and me. You fill in a row on the log for every bar. You always know that you know. This is day 1 of 20 days. There are two market variables. You now know how one variable works. you know the ten cases and you can write the form of each one in a row in the form column. Your display works to make boxes and fill them with colors that show the kind of WAIT case is formed by a shape. We drew the long and short translating bars. These are price moving bars that make money. Then you drew a hitch and modified it over and over to get the other cases. We added the UL caveat. This is as complex as it gets. when you wake up tomorrow morning, your unconscious mind will have worked all night to build you mind by merging the unconscious into the conscious. this is the main work of the 20 days that happens at night between the days.
Find the five pages of the log that someone will give you the posted reference for. Buy mechanical (0.7mm) pencils (HB leads) and get a ruby eraser.
A word about laterals. they were defined and they are known when the third bar forms with the other cases. I color the three bars in their box. after that I just put the lateral bar number above the following bars. I put a 3 in volume to wake me up on the third bar. In the log I write lat 3 in the form column. I draw an arrow to the written UL in the row or two above. I draw a line through the volume colums and then place a W in the event column. So more of the day is eaten up by laterals. they can last as long as they wish. On lateral 4, a caveat occurs. caveat 2. write retro in the cloumn to the right of the event column. Fill in the names of the voume bars in that column. for now you just make the column. You have completed 20 % of your training. It is important to not begin to invent super ways to improve making money. On monday last you more than doubled your capital. This is a good enough level of TA non descretionary trading.
The trading log sample can be found here: http://www.elitetrader.com/vb/showthread.php?threadid=203194
outsource100 knows what you know and he is getting ready to teach you a lot. 80% remains and it invloves mostly annotating volume and then looking in four one page tables for what to write in columns and rarely to do a money making reversal. Lets do the first trade of the day. You enter on bar one using the carryover instructions you wrote on the bottom of page 5 of the log. Roughly this means you are making money from the first minute of the day onward. On bar 77, you exist before the close of the bar. The reason is that the day margin is going to change to night margin and you cannot trade as many contracts and you are holding before bar 78. During all of your holds, you are using 94% of your buying power. Two principles are involved: 1. you know always that you know, and 2. to make money in markets you have to be IN the market. Up to now you never knew that you knew with 100% certainty. that changed today. Now you are 20% of the way through training and you also know that you know all of the time.
WOW!!!! We are on a roll. There is still steam on the launching pad. Thanks so much, OS100. Jered thanks you too. We can make a 30 min sitcom like "Rules of Engagement". All jokes will be doubles. One for volume and one for price.
WOW! I am making sure I am buckled up. Thoughts about what is to be learned are consuming me, which I really like. Headed to get the pencils now. Thanks!