Notice the symmetry between legs of the olive up Channel. Each leg consists of one Traverse, and none of these 3 Traverses shows either a Flaw or a VE. Then look at the symmetry of the legs of the grey lateral Channel. Each leg of this Channel is made up of one Traverse, and each of these three Traverses shows a VE. (As I was typing, the ES created a Chubby Tape up after the third Traverse of the grey Channel.) Edit: Also note how the two dominant Traverses of the olive up Channel formed their Point 2 to 3 retraces. Both were formed by LM on DBV, without a single red bar.
Hi, I remember reading about the equities method a couple of years ago, where you take a list of stocks that seem to cycle in 6 months, and when the go from dry up volume to .... (can't remember) I've went through the thread to find links on exactly what this strategy is and can't seem to find a link that isn't dead. I was wondering if someone knows of a valid link? Thanks
Another helpful bit of symmetry: in the grey lateral Channel, both of the dominant Traverses show exactly 2 VEs. So when we get the VE with a close off the low at 12:30 EST (close of bar), we can look over and see 2 VEs in the first dominant Traverse of the Channel. This helps clue us in that we should anticipate another VE before the current Traverse ends. The 2nd Traverse of the grey up Channel (green) only shows one VE, followed by an LTL touch. Is this a problem for us in terms of symmetry? No, because we don't expect the non-dom Traverse to be as strong as the dominant Traverses. I've been noticing that the non-dom Traverse, while frequently coming close to ideal symmetry with the other 2 legs of the Channel, will often show one fewer Flaw or VE or fanned Traverse. And sometimes, of course, the non-dom Traverse is so weak that it doesn't form an up or down Traverse at all, but rather a LF or LM instead. I'll attach the same chart as my previous chart so you don't have to scroll back looking for it:
Heres my attempt at the ES annotations so far today. Wanted to get it out before Spyder did. Feel free to rip it apart if you want and explain any weaknesses or strengths you clearly can find.
Post 4 on cases, etc. This post will cover 6 topics: three for the mind and three for trading as a parallel development. the topics are: modules, the heirarchy, and change. So far you have seen a tading group forming a module and how reading as a module has three areas of the mind that are at work. Modules Below is a general module which is presented so the parts are understood. Basically we are processing information and the processing is done with some aspect of knowledge that is available as a resource. Below, under change you will see how these resources are manufactured or delivered. I will give you references for any resource or its basis as we go along here. Information is provided sensorily in most of the work I will do here but on some occesions itcomes from lookup tables which are either tangible or in the mind. I will do seeral additional illustrations regarding these six topics. So far.I have only figured out how to do one a page if they are new. Hierarchy The heirachy of the trading is well articulated and the levels are named for many parts and the knowledge and skill levels go from beginner to advanced beginner, beginer internals, intermediate, advanced intermediate and expert. These are building blocks each composed of many modules. What I am doing here is a parallel development of the hierarchies of the mind and the trading. As time passes I will keep several planes in view to show the heirarchy where the seven cases and reading are the vanishing point on the distant horizon where it all begins. This construct is easier than the onion model with shells that is used in the periodic table of elements. In the mind we will use use locations, operations and connections to describe things. Localizationism will not be a theme, however. Of particular importance is how short term memory can be conducted to long term memory and just what prevents this and why. The mind has operators and three of them work together to do many kinds of unrelated jobs the mind does. The operators that work this way to multitask are: spatial, movement, and shape. From this you can see why the 7 cases were chosen as the seed. Spatial deals with the relations of things. Movement is change in spatial relationships. Shape deals with what something looks like and how it is identified. All of these things are abstract information. Charting is an abstract information system. There is much more to the heirarchy of the mind; I will fill in details as we go. Change The process of learning to trade is a process of change. Learning to learn is a process of change. "We see with our brains, not with our eyes." --Bach-y-Rita is a good basic quote to begin to see how change works. Trading requires that the mind be built with regard to knowledge and technique. Both of these are what pours down the vertical input of the modules we will use. Resources that are long term must be built so we have fnctionality. and "technique" is similar; our minds need to be able to do the right thing at the right time. Look at reading. See how trading can be thought of as reading. we need all the reading ingredients to read well and comprehensively and to have long term memory of our reading. Today a blind person reads at 340 words a minute using auditory modules in his mind. You cannot hear at 340 words a minute (three books a day is the pace). Here you will do the equivalent of trading at 340 words per minute as if you were blind and accomplished. MADA is the chosen routine. It provides repeated closure and "knowing that you know", the certainty proposition. Drills contained in the heirarchy affect the changes in the mind that afford building the mind. We put things in your short term memory and allow them to become long term memory resources that can be steered to an focussed upon in a taimely manner at all times. You must recognize your potential and conduct learningand trading to realize what is offered both by the markets, and, in my opinion, moreso, in the passing forward, that you have and are being given. Change in the mind comes in several forms. In learning and behavior modification a lot is going on. We will deal with four types of neuro plasticity (Grafman) and four types of plastic ideas (Freud). Neuro networks are built, modified, enhanced and destroyed. they form complex heirarchies. The SCT was created to be parallel with the mind's processes and how the mind does networks. You will actually see wholesale shifts of topicgraphical area usage as the mind builds in its effectiveness and efficiency. Change takes time and it is non linear. I will present tables of examples I have compiled so that learners can identify with the properties of their mind's rate of inprovement as compared to other purposeful learners and repairers. You will learn what aha's AHA's and religious experiences are and why they happen the way they do. Thinking that things are unbelievable and astonishing happens in some minds. You can see why this is so as you go through not being in that place as a consequence of exercising and building your minds. It is proven that if a person knows what is wrong withhis mind, he can repair it very quickly no matter how long the gap between injury and beginning repairs. The same is true for mind building.
Again note the beautiful symmetry between the first and third legs of the maroon down Channel. They both begin with a shallower red down Traverse, then both of them steepen to a pink down Traverse. Also, I forgot to mention earlier: look at how nicely the slopes of the Traverses within a given Channel match up. I realize that all of these concepts have been discussed before, but I'm only now beginning to appreciate them more fully. Recognizing these relationships between Channels and their component Traverses, as well as between the Traverses within a given Channel, has been leading me to a flood of Aha's. I hope that sharing these Aha's will help those of you who are still struggling to see all 3 levels simultaneously. I hope I'm not cluttering the thread; if so, then I'll be glad to ease off on my posting frequency. This stuff is hitting me in waves and I keep wanting to get it all typed out before I lose it...
post 4a This is the seven cases module. The mind has the 7 cases in it as a resource. These got there as a consequence of doing channel drills on level one. The goal of using the cases is to have a trend and Sentiment value in our minds as a consequence of doing the M of MADA. We process bars and we operate withing bars. As you will see from the 9 pager we start with the Seed and use it as the core for taking complete data sets of M to go to A to find the pair of subsets of M and A which match. The match gives us a value drom D when we match the A and D pair to get one of five answers that are certain as a consequence of the binary nature of the elements in the M subset. Algebra base 10 is used to draw the channel lines as parallel by usung a common m (for slope) and an offset to give channel width. Thus we have b1 and b2 and their absolute difference is the width. The channel width is a volatility measure and it goes into lookup tables for various uses. We will run into those as the heirarchy develops more and more planes of operation.
post 4b The reading module As you see there are three operations going on in reading. Doing reading inculcates the language the vocabulary and the symbols for each word. neurons that fire together stay together. doing reading is an exercise that keeps the neurons firing togther. The use it or lose it rule also applies to neurons. If you do not use them the neuroplasticity competition will nudge those neurons into a new and more useful use in your mind. You also supply neurons to your locales as a consequence of usage. Prolonging the lifespan of these neurons is important too. This is done in two ways: maintaining health and always engaging in learning. In trading engaging in learning is the principle activity of the trader. This is true because as you learn you find out more and more THAT THERE IS MORE TO LEARN. There is one exception to this. The exception occurs when learning is an endangering exercise. The field of psychoanalysis is devoted to correcting the results of endangerment that occurs with people. In OCD, which also involves a triad of module components, one of the components no longer may be turned off and it causes a cycling among the three components to continue unabated and the mind and the bodily energies becomes tied up in the looping. In MADA which is an intentional routine we bring closure each lap by the Action component of the MADA. The Action is most often Continue which is not behavioral in the sense of an outward behavior. An action copletes a routine and closes out the stepper in the routine since step n is attained and we know this. Thus we claen the slate and are free, mentally, to go on about our business. Taking data sets that are complete is another sub routine thatachieves a mini closure. This prevents rexamining the display to get to a place where acting on a single elelemnt of in[put is a possibility. the single element acting is a REACTION and leads to the very common freak out nature of edge trading which leads to repeated failure. We move purposefully by engaging our minds in routines in the opposite direction of freakout REACTIONS.