Do yourselves a favor and read Curtis Faith's interview in Active Trader and his book, especially the parts where he talks about new and unsuccessful traders unnecessarily complicating trading to their detriment. Yeah, I know Curtis hasn't returned -24% in a trading contest like Jack has, but did you ever think that he might have a useful perspective despite being eclipsed by Jack's claims of greatness? Maybe after you spin your wheels for a few years you'll realize that trading isn't really that complicated after all.
Ezzy - just a couple quick comments for now as it's getting late after a full day. You are correct - I normally start the ES chart at the NYSE opening bell, but on Friday I did start up earlier for the NFP. By doing so, it surely did affect the 20 sma, since I specifically had asked some others for their values of same during the session. But it still seems the 20 sma should be watched, as it does seem to "carry some weight" Also, according to Spyder's response to my question, and to your own comment - it seems the consensus is for beginning the YM earlier to sufficiently gauge mkt sentiment. Good to know! I need to question you more about R2R's and such, but will have to let that go until another time. Finally, in response to your observation within your later post concerning my volume rays - you are also correct! I had overlooked the inclusion of the other green line at the 9000 level, and a couple of the others seemed to need a bit more adjustment. Using Ensign software here, and they use a 'delete' and 'delete all' button for managing objects on a chart. A couple of times I have accidentally hit the 'all' button and wiped the charts clean - heheh. I apparently was a bit careless the last time I reset the volume rays. Thanks for bringing this to my attention! Best regards ...
bundlemaker - just wanted to give another quick thanks for your contributions here. I've surely studied (and appreciated) all your posts in Spy's journal, and am pleased that you have taken the time to also share your thoughts within these pages. You have that unique ability to transfer important insights to others. All the best ...
Thanks for your comments, Trader666. I realize you are positioned on the other side of the fence, and that is cool. I must say I am not familiar with Curtis Faith - so I appreciate the suggestion. Your quote above interests me, because at the onset of my PV studies, I was quite intimidated with all the lines and such. But as time progresses, I am starting to see the actual simplicity of this approach. The initial work lies in nailing down a few very important concepts, and the rest is merely putting in the required practice to drive it all home. Best regards ...
I will direct this question to Ezzy, since I mentioned last night to him that I wanted to ask something, but anyone so inclined is of course welcome to respond. As an example, let's say price is in a dominant upchannel, and an apparent FTT is presented. It is my understanding that we then look for the following: first we want to see decreasing red volume, then increasing red volume as price pushes below the rtl of the up channel. Once price reverses and begins to retrace, we want decreasing black volume as we anticipate a new pt 3 down channel to be created. This is the sequence I believed to have happened in the two previous chart examples I attached earlier for 05/03 and 05/04. But after debriefing, it seems that I am mixing up the resolutions, and I am taking the signal off of smaller R2R's and a break of the dom traverse tape. Today, I took this signal again, this time coming from the YM chart, but taking the trade in the ES. Once again, the R\/R happened in only two bars time, and I entered at what I felt was a logical place after seeing decreasing black volume as price was retracing. It resulted in a pretty fair entry on ES, 3 ticks below the extreme of the 'tree' pt 3. (ES chart not shown) When looking at the attached YM chart, can you tell me if this is considered a tree/limb resolution? My problem is, when trying to utilize this approach on the forest level, it often seems that by the time the R2R is annotated, a large percentage of the move has already transpired. I have added what I feel is the forest R2R as well here. I'm sorry for this very poor description of what I am trying to get at - too tired to think straight at this point. But maybe someone can discern what I am confused about here. Thanks for reading ...
Again, to be clear, all charts shown are in CDT zone, and the above attached chart snip is the 2 min YM. Results for Monday attached ...
The way I see that one is the increasing red of the R2R coming after the point 3, but I could be wrong. The top of the black gaussian should be on the 8:44 bar as that is the top of the move. That is being strict in matching the gaussians and channels. Because of the way the software is coding the bars, a couple of the red bars should be black, 8:50 and 8:52. As far as resolution, it's branches or maybe leaves. What it does do is give you a shot at getting in before the FTT shows up on the ES - pretty cool. Regards - EZ
Shortened session today due to other commitments. Doesn't appear I will be missing much. Looking forward to getting the FOMC out of the way, and hopefully, to the return to more normal volatility levels.