I recommend differenciating between Increasing Black Volume and Decreasing Black Volume. Each represents an entirely different context with respect to your trade. One context, you should expect while in a short trade. The other, you'd want to avoid. Understanding not only the answers, but also the context in which the answers materialize requires a bit of focus on your part. You can locate the answers to these questions on any chart. - Spydertrader
We all arrive on Jack's doorstep with different stories, as in life experiences, and different stories, as in trading experience. To answer J. M. Hendrix's query: I am experienced. But of course you don't know that (how could you?). I do appreciate that there is some aspect of "How do I (you) even know if this goy knows how to draw a bleedin' channel?" Cool. Zero offense taken. I hate the actual act of annotation (typing shit out using QT's wretched capabilities in this regard) BUT not the necessity of annotation - not unlike the difference between mental stops and physical stops. Attached you will find a portion of today's YM and ES. FWIW, I have absolutely no difficulty identifying what I think to be FTT's, P1's, P3's, DT's and DB's, etc. The 20 SMA is fine for some but as I said before - not for me. It is one of the ultimate lagging indicators but is widely used by the herd and therein lies its utility, IMO. I spent many, many hours refining my EMA fan and will not be discarding it. There are exciting interplays between it and Hershey channels/indicators. For simplicity, dump the 20, 50 and just look at the 5, 10 and how the EMA's interact with each other firstly and secondly, how the 10 EMA interacts with price. A 5, 10 strip keeps you in a trend, until it doesn't. I am not trying to set myself up as practicing the method in a way that I think others should. Spyder has laid out a very clear set of "how to's" in the Futures III thread. Unfackin' believable the amount of work involved in what he did. People who don't understand what he said and did should become familiar with his protocols before attempting to iterate something. As for the "automatic" stuff with the offset. Sorry. I can't buy that for a minute and that may in part stem from my belief that the current use of STR-SQU is way below its potential. Way below. This being an "iterative refinement" thread I am attempting to make a contribution in respect of what I've just said - realizing the potential of the flapper. Like Jack, and I'm sure several others on these Hershey/Hershey-Clone threads, I am a quick study. I learned long ago that to hold onto a falsehood is a waste of time - if I don't understand something and tell myself that "I do" or "It doesn't matter -this thing, whatever it might be" is crapola of the highest order. So let me assure you that I do understand PV. The Jokari plays itself out countless times every trading day. Similarly you must know how to draw a channel. Period. If your channels are fucked then so are you. The governor on my drive to get into the futures market and start trading for real money is a statement Jack is said to have made some time past: "Don't think of reversing until you can make $150K a year trading 1 ES contract." When I think I can do this (make $150K/ES/yr = $600/day = 12 points/day) I'll start trading for real. lj ESH8 here and YMH8 in next post.
YMH8, demonstrating, amongst other things how FBP's and FTP's ONLY occur on non-doms. The dark blue lines are prior day H/L; the light blue lines are overnight H/L. Anyone who doesn't have these on a chart or written down somewhere, puts them selves at a huge disadvantage every day. They are one reason for those pivot point thingys. lj
Youre right but I should also point out that I have little to no knowledge of pennants yet. I currently just trade off the signals and my next real goal in the learning process is to translate what the signals show in terms of channels/guassians and/or PRV analysis. Basically Im cautious because I dont want to assume anything and then cement into my mind as the right way to do it when it may be either wrong or up for interpretation.
First Lateral Formation annotated - isn't. It is an FBO of a Pennant (not annotated). The Price action of this area cannot create a Lateral Formation as the FBO Bar (Big red) has a High or low falling Outside of Bar 1 of the Pennant Formation. In order to have a Lateral Formation, all subsequent bars (minimum three) must fallin within Bar 1 of the Previous Pennant. The third annotated Lateral Formation also isn't. However, this does represent Lateral Movement. Differenciating between Lateral Formations and Lateral Movement often provides significant clues to what must come next. In addition, understanding these differences sheds a significant amount of light on drawing Gaussians (not annotated) through areas which might normally appear unclear. Good Trading to you. - Spydertrader
I disagree. Today has numerous examples of Pennants forming on Dominant Traverses. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1741891>
A daily ESH8 beautifully demonstrating the Jacobian rule that: "an FTT is an FTT is an FTT". Additionally there is a nifty (and perfect) adjacent bar odd harmonic DT. lj