this is a pic of the Modrian Table. the size is larger than one page, but we do use a one pager inside the transparent cover of the 3 ring where we keep related stuff. On the back cover of the 3 ring I keep a table of additions. Today on bar 20 I saw a n-1 to n turn that contained two consecutive PP4's that come from OB's. Consecutive OB's are rare. The context was there for dealing with a rarely occurring opportunity. I shall do some posts to cover the general aspects of using an approach that is based upon the system of operation of markets.
Most trading comes from a subjective orientation. See the list on the left side of the ET home page. A lot of threads are posted which explain how subjectivity works. Up to the point where irreversable damage is done, it may be possible for a potential trader to take steps to convert from subjectivity to objectivity. Also glance at a post in the channel thread that shows a trade using a 3 minute ES chart. A target of one point was handled after a presumed channel breakout confirmation. Lets consider a rational objective process that a person can undertake if his mind is not past an irreversible subjective belief system development that has gone on too long. The basic kernel of potential trading comes from facts. One elemental fact is that, through price change, the potential trader CAN make money. Market owners make this possible by allowing traders to participate in their market. If and when a person builds his mind rationally, then the person can partner with the market in a harmony that allows the person to take the offer of the market. All markets have participants. Enough participants cause a market to become liquid. When liquidity is always present, it is possible to objectively deduce the system of the market's operation. Once the system is built anyone can use it to extract capital by taking the full offer of the market. Our trading room has gone through observing how taking the full offer happens. Now, we all know we can double our capital on a weekly basis.
Our trading room focusses on three things: 1. Purposeful learning. 2. Understanding how our minds operate. 3. Making use of a system of how the market operates. Everyday we annotate and log the market incoming information as a team. Everyday we use a trading platform to process trading signals we create.
The system of how the market operates was deduced by reasoning. We observe that the liquid market is always correct. The market participants are very reliable with respect to the behavior. therefore, the tennets of Behavioral Finance are always at play and always work as in the statement: The market is always correct." Building the system of the market's operation requires that the iterative refinement of behavioral Finance be used in the deductive reasoning process. The foundation of the system has to be a deduction whereby no other simpler solution is ever going to be available. In rational deduction there is a theory devoted to this concept. A pragmatic consideration also drives the deduction that drives the seign. The trader is important and there must be a harmony in the partnership. This is incorporated by using the equation for PERCEPTION. Sensing plus inference equals perception. Three sensing operators include (in order of primal importance): space, shapes and the change of shapes. Thus the inference spectrum is BUILT using the sensing attributes. INFERENCE is a long term memory spectrum built by the mind's operation. the trading room's purposeful learning is a process of doing repitition using one complete set of facts. since our purpose is trading, we simply skipped building a complete set of facts and we just using the exisitng set on seven pages.
For most of my transferring stuff to others, I asked them to repeat the experience of creating the system of operation of the market. It does not work. My better alternative is to give away the set of facts on the seven sheets. People are not interested in doing creative work; they are more tuned to using an effective and efficient system.
Jack- just wanted to say thanks for all the help. here is Jacks 10-07-13 chart with PP1' s highlighted in yellow. A catalog of the Pre- Primary Volume Band Sheet is something I am working on.
The market has only so many pieces. This is a fork in the road whereby most people go away from looking at the market's makeup and then they resort to the mathematics of their choosing. Quite beautifully this separation make the market work more simply and it makes it more reliable which leads the more effectiveness and efficiency for the minority. The elements of the market have to be deduced. This is how the PeriodicTable came into being. Everyone working on the table thought the same way. Children learn all about the preiodic table. They also learn how languages are constructed. Go and look at what the majority does by reading the threads on the left side of the ET home page. By reasoning you get to see that bars form a simple geometric form that can repeat. The form has three parts: a beginning a middle and an end. Thus by using just a few bars a person can learn to constuct the cycle of the market. The cycle has two identical geometric parts. The beginnings must be done perfectly and so must the endings. For a cycle to work both parts of the cycle must FAIL. They do fail in the same way. All of the geometry of trading begins with the fastest fractal and the fractal interlock. This post contains too much information for the average person to digest. As a consequence most traders do not use any logic when they trade or make money.