Here is our chart using volume as an OOE. As you can see we were bouncing around at that point. Congrats on your cool trading.
Yes, I recall a twenty plus minute hold and wait before the retrace became a reversal. It was predominantly a calm wait, except for few moments at the beginning of bar 25⦠Given your admonishment to me over the weekend to throw away my definition of retrace (albeit it was before I stated my definition), I was hoping you would take a few minutes to address my retrace/reversal questions. I wasnât looking for THE answer, per se, but I do value your input. Regardless, your admonition prompted me to review thoroughly the retrace/reversal definition implications of my M-A-D-A. I find my definitions work best, for me. Thank you for yesterdayâs chart. -river
Hello again⦠Mr. Hershey- I was hoping you could elaborate on your three tick rule. Does this basically mean that when you set a BM, you allow the market to go 3 ticks 'BEYOND' that BM before actually taking the turn? Or do I have it backwards and you're using it to help facilitate the best entry at the next turn? Thanks for your time in explaining this...
I trade in the fast lane with market orders in a hold/reversal context. Anticipation is where an event (turn) first comes into view based upon Orders Of Events (OOE's) OOE's are deduced once and for all. Then together, they create a complete system The system is cast in stone. As you look a BBid/BAsk pairs and think in market order reversal terms, you see that the reversal (an exit followed by an entry , all market orders) involves paying a penalty for a priviledge in any market (Being in the fast lane) This means this type of trading has a tolerance factor all based on market operation characterisitcs. Excellence is a good standard to set; I work towards taking the full offer of the market. To do this I pay a "priviledge tax". All in all working to a three tick tolerance, enables an early action with respect to WMCN (What Must Come Next). It is a cosey place to operate with feelings of support, comfort and confidence. THe secret ingredient seems to be gatting people to conside how to gain "facility". A sort of I've seen this movie before and I know the words in the script. As Tonto said to the maskman on the white horse: "We?" as a tribe of warriors approached on horses. In another thread some guys are saying the majority controls the market; so far they have not seen markets in operation. Will they ever see a Wall on the DOM; will they ever seen just when price changes by a tick as one side of the DOM where the minority is) dissolves?? the minority allows price to continue to trend; The majority stops the trend cold. Carving is done appropriately within thre ticks of the extremes.
I know I am two replies behind: 1. dealing precisely with retrace. 2. Showing the basis for having an automatic "tape reading" of the Dom, Walls, T&S and DOM games (adds and pulls strategies).
Hi Jack, I have another question to add your backlist regarding laterals; Laterals are on a different fractal to your trading fractal since RETRO is done in hindsight, why not use the most recent EE (prior to the lateral formation) and compare that to the lateral ending EE on the Modrian table. Why not just call all the turns inside the lateral P3P and wait for the breakout? What am I missing? Thanks
RETRACE In trends, even move 2 is a retrace. Even moves above 2 can become reversals. So all even moves above 2 have to meet the clean page 4 test (TRUE result) OR they are just retraces. Clean page 4 is a complex regional analysis technique. All even moves above 2 are subject to fanning. A BO left to right after a fanning can allow a clean page 4 region to be True and thus a reversal.
For item two see: http://www.elitetrader.com/vb/showt...0057&perpage=6&highlight=hershey&pagenumber=9 In particular, note how easy it is when the measurement becomes significant. you are looking at a BBid/BAsk pair that has become lopsided. the small side is dwindling (in limit orders) faster than the T%S is moving (movement is a measure of velocity) The T&S wins since the adds cannot match the trades. I use 200 contracts on ES e mini as a count to be the trigger to concern myslef with hitting "T".