Good question. 1. Use a channnel offset. There are many ways to do this, choose whatever is comfortable for you. 2. Wait for a second close outside of the channel. This is what classical TA would suggest.
Now the question is how does the trader operate within the channels ? Here are some channels posted by JH with trade locations notated by the yellow dot. Oddi: Would you please explain what triggers the trade at the places marked by the blue circles if you know ?
I think many of us would like to know why all the negative comments from a person who obviously couldn't be bothered to learn the basic rule set? Steve
Jack, Won't you think it's about time you rise from your but to calm down these heated discussions? Make a few trades against Trader666 and reign like the king of ET. Given your unbelievable amount of pages at ET's - some think perfectly useless crap - you owe it to all of us to do something about this. As you know yourself, lill' Oddi is of no use in all this. CREDIBILITY
It seems to me that JH picked out some trades that are not logically explained by constructing channels or using indicators. Trades 3 & 5 lie on bar extremes which coincide with a previously drawn trendline. That seems a logical place to trade and is a reasonable explanation for why those trades would have occurred there. Trades 1,2 & 4 lie at a bar extreme not on a previously drawn trendline. Since indicators are usually calculated on bar closings, they will never indicate a bar extreme exit unless the bar closes there. Points 1,2 and 4 do not have such bar closings. And on this chart there are no volume or indicators anyway. Unless someone explains how these trades occur at bar extremes, I think its reasonable to conclude that the trades were picked with the benefit of hindsight.
CL, you asked a simple question, and I gave you a simple answer. Now, I am not really concerned with going up the road that you are trying to go. If you believe the trades were selected with the benefit of hindsight, that's fine with me. I really don't care to that degree. Jack teaches a lot of things that have to be used as an integrated system. For those that can do that, money is made. For those that cannot do that, they should try something else. There are many ways to extract money from the market, and it is becoming clear to me that Jack's way of explaining market behavior may not be for you. That does not make you dumb, nor does understanding what Jack is saying make any of us smart. Sometimes things just do not resonate with people. There is another nice system that uses keltner channels and a chaikin oscillator. Bill Williams uses a MACD and an Elliot Wave combination. WDGann uses confluence points between price and time. Connie Brown uses RSI and a stochastic of the RSI as far as I can tell. There is also a good thread about trading hammers. Maybe Jack is not for you CL, I detect that you are more interested in being advarsarial, and I am finally growing weary of playing the good samaritan. If you wish to continue to learn Jack's methods, I must insist that you gather a baseline of information regarding the methods, put on some real time trades and then we can do after action reports on your trading day. Best Regards Oddi
Jack showed a chart with very advantageous trade points marked. In fact every trade is a bar extreme. On the chart he notes that no trade requires any wash action at all. Yes there are many ways to trade successfully. I know and practice a few of them. I have never known of a method which picks so many perfect trades. Jack says using channels in a logical manner will produce that result. In fact here is his quote from the beginners rocket thread to me about using channels and specifically referring to the chart I have been using on this thread: "attached is the graphic with channels and trades annotated. This illustrates the advantage of annotating channel ASAP and being able to see each and every FTT that begins the new channel while inside of the existing channel. This concept which is foreign to you is like changing trading skills from night into day. You definitely do not know how to draw channels before or after the fact. All trades were longer than any of your posted stuff with one exception. These trades have you IN the market about all of the time. you can see that for each of your trades noted that you said you did, there are several trades accomplished with the use of three tools: 1. projecting channels to see: 2. The FTT that starts the next channel. 3. Reversing on each FTT. Note very well the risk of reversing (taking profits and reentering simultaneously. see how many times after a reversal that you have to exit to have a wash. Can you even get wash trades to work if you are reversing on FTT's? What would it be like if you had to do a drill that said do washes where all entries are on FTT's? how hard is it to draw channels using two adjacent bars and project? How hard is it to reverse on a FTT within the channel you have drawn? How hard is it to wash after an entry on a FTT? IMPOSSIBLE!!!!! ROCKETS ARE SIMPLY FAST PACED CHANNELS OF THE SHORTEST DURATION OF THE TRADING FRACTAL." "If a person trades price only and wants to limit himself he can use this chart as a sufficient data set to produce a mechanical system that spits out a multiple of the daily high low." That is the road I am going up. Oddiduro, let me ask this another way : What identifies a point JH has marked as the FTT in that channel before the bar has ended? Isn't it logically required that a FAILURE is given the entire bar to develop before it is pronounced a FAILURE ? Until the bar is over anything can happen. If you are just plain weary of this, no problem. Thanks
Question :What identifies a point JH has marked as the FTT in that channel before the bar has ended? Question: Isn't it logically required that a FAILURE is given the entire bar to develop before it is pronounced a FAILURE ? Until the bar is over anything can happen. Answer: Prorata Volume.