I am getting my butt handed to me on a daily basis!

I will get to work on the channel system I use this weekend. I have explained it before so I will dig it out and attach segments that fit into ET and are old Word type docs.

The 30 min does have one channel fully annotated today. Annotations were done and the market proceeded.

 

Will you share the 30min?

Why do you annotate channels in 30min but not in 5min?

Why do you sometimes seem to start to draw channels in 5min but then don't continue?

 

Found it.

But now the question is:

Why don't you use the volume bands on 30min as well?

And in general... Why do you use bands instead of gaussian lines?

 

Thank you for the detailed annotations on yesterday’s 30 min ES.

As the day unfolded, I viewed the 30 min as continuing an upward sloping traverse that began at the low of bar 9 (the bar ending 2:00 pm EST) on Tuesday and continued throughout all of Wednesday. Although our nomenclature may differ, and your chart was more thoroughly annotated, I was reassured to see that my chart was very similar.

I have a couple of questions about two of the comment boxes on your chart. The box that reads “On VE move….” appears incomplete. Is there a second part to the comment shown? There is a box that reads “Short move 1 to 2 busted” and points to bars 6 and 12. (On my 30 min chart the areas in question are both just after a retrace completed.) Is this box intended to point out that a “normal” dominant, non-dominant, dominant type trend failed to develop, or does it refer to something else?

In an effort to refine my application of the channel methodology and eliminate any inadvertent inventions of mine, I’m looking forward to a close, careful study of the channel system you use.

-river

 

jack hershey:

Quote from frenchfry:

I`d say,i mean if you don`t,be ready to see the fire.The beautiful,colorful fire.But,don`t worry and don`t be afraid when you`ll see it,-it`s not harmful,it`s purifying.There ain`t no any ''tunnel'' out there.Just the fire your dropping in-play with it.In churches,they ain`t light the candles for no reason.You should light the candle while your still alive and kicking,not afterwards.So light the candle.

My grandma has passed away last year,she`s from 1933(i`m suppose as you are).I`ve been nearby for more then 6 years when she was chained to her chair.That generation,you couldn`t break her with the bulldozer.Strong,straight, firm people.I admire your generation and follow your example.

 

Just in case you really want to learn...............

1. daytrading is very difficult. Accept that, embrace the failure rate, and try anyway.

2. Buy The Logical Trader by Mark Fisher and Trading in the Zone by Mark Douglas.

3. Read The ACD thread on here from start to finish. Do everything you can to internalize the method, and make it right for you. Lot of work, but worth it.

4. Read and more importantly think about everything Maverick74 writes. He is a real trader and it is very rare that someone with his skill set pays it forward the way he does.

5. Stick with simple setups generated using the ACD methodology that suits your personality and style. Stick with them until you know them by heart before adding new layers.

I have traded retail, worked on the floor of the CBOT, and hung with some really great short term traders. the above advice will help you beyond measure. No more reaching for trades. No more hoping and wishing and guessing. Just rational bets day after day based on market reality. I mean really, pretty much anyone can draw a channel, how much edge could be there? Laugh all you want, but a lot of really, and I mean really successful traders have used opening range methods and volatility along with traditional PA to do pretty well for themselves.

Friday in the E6, I got long after a failed A down signal, took almost no heat, used the 30 day ATR to set a reasonable target, and made 64 ticks in a market that has a average daily range right around 90. Not bragging, but pull up any commodity and you will see tons of these trades. Winners breed confidence, they help us be more disciplined. Success breeds success. I mention this because read in your posts that you seem to not trade with an anchor.

Good luck

 

Okay I have nswered the Q's in the space by going to where you are.

A lot of readers will be departing as recommended by a person who has completed his vision of the first 5 steps of ACD.

also there ar other channel threads. As pointed out this is a lesser version of just my system of channels.

Here is the foundation.

1. trading is easy and anyone can be successful if they obey precisely what the market is dictating. The market is always correct. a trader partners with the market and follows the partnership agreement. (Reread the one you have in effect this weekend)

2. Learning to trade can be accomplished in 20 to 40 days. you have to know two things: how to learn and how the brain works.

3. Repetition is the key to doing purposeful learning to create long term memory in the mind. Long term memory is what provides inference in the perception equation.

4. Perception (100%) = sensing (10%) plus inference (90%).

5. the market has two variables: the indipendent variable (volume) determines the dependent variable (price).

6. Stupid people use price only, the dependent variable.

7. In trading, context is important for optimizing making money. Price shows the sentiment context of markets. sentiment is a RESULT.

Here are some other small requirements for optimum trading.

a. Market are not continuous; markets have granularity. the variables can only have certain values and not any value and in continuous functions.

b. statisitics do not replace continuous functions; finite mathematics replaces continuous functions.

c. all elements that are part of the system of operation of market are defined precisely in terms of fintie matheamtics. All elements must be defined to have a COMPLETE SYSTEM.

d. In channels it is simple:

price has 15 elements, volume has five elements, channel boundaries are four in number.

For price use the ten cases plus points 1, 2, and 3 and FTT and BO of RTL.

For volume use Peak 1, trough 1, peak 2, trough 2 and Peak 3

For channel boundaries use the beginning and ending bar and the right and left trend lines. Channel variables involve events and left to right and right to left movement. Dominant movement (trending) is a right to left movement (odd movements) Non-dominant movement is a left to right movement (even moves). Two categories of non-dominant movement are found: retraces and reversals. Both are differentiable.

All aspects of channels involve Orders Of Events (OOE's)