Thanks for the reminder Sprout, it's been years since I last read PtPT and it's time to re-visit it. What I spend my R&D time over the Christmas holidays is starting to narrow into focus.
E mini's trade using Jack's Method, multiple timeframes are used to create regressions or lines/trendlines. Random orderflow or directed orderflow will throw the ES into one of the channels. ES respects those channels in terms of mean reversion or it doesn't and shifts to the next channel/trending. Its very versatile system. I do it manually but my resolution is not into the sub 240 tick timeframe. If anyone wants to code it/automate it, I'll give you guidance. regards, Chris
Hey sprout. That was a great pdf you posted. Thanks. I have a few of questions if you don’t mind. 1. Would you be able to elaborate a bit more on how Jack came up with the percentages used in the unusual volume table? Where did he come up with that distribution of percentages as in 16% for the first 30mins, 28% for first hour etc? 2. I thought dry up, FRV and PV came from an eyeballing of volumes pre, during and post breakout versus using a percentage of the 65 day avg. or a Decimal value of the percentages from the table? 3. Are the values in the unusual volume table still valid?
Question as I continue to study. Reading Spydertrader’s journal II and I’m wondering does one use the low band DryUp/DryUp average combo in conjunction with the unusual volume table? Seems like it would be redundant to use both? Secondly, just thinking out loud but this all seems to me like it’s just a measure of volume pacing. Creating landmarks to judge the rate of volume. So my mind is thinking why use low volume measures? Why not use a higher volume measure? I do understand that using dry up volume is sort of a pro rata level for FRV but why not just use a percentage of FRV or some higher volume calculation? My idea is why not calculate the average of the volume decreases from the prior day over let’s say 6 months then scan for stocks that are below that average with decreasing volume. Also calculate the average of the volume increases from the prior day over 6 months and use pro rata levels of that average to trigger the breakout. If price maintains a certain percentage of the average increase we would expect the average increase to be hit EOD. Just some thoughts.
Thank you @Sprout for taking the time to reply. Final question for the moment before I dive deeper into studying and observation when the market opens tomorrow. Does one need to calculate the actual dry up value for each stock or could one just use the percentages of the 65 day average as per the unusual volume table? I’ve been playing with both and I think I like just using the unusual volume table.
I’m channeling my inner Jack. He liked channels. I too like Channel #5 . It’s like a tree in the woods. If nobody is there to smell you, do you really smell? The paradox to the paradigm is to realize the box holds the key to the dime. Don’t get caught without one, you cannot make a call at a phone booth. We know Lincoln didn’t care for Booths so he didn’t carry a dime. In a parallelogram you look for acceleration on the right. The left is for passing, so you fan. Much like the girl I met once, an Asian girl with a fan. She waved it, so I knew to slow down. After all, stage left is for fans, much like at a concert. That tells you something before the crowd is aware and the band hits the platform. You know the first song before they played a note. You’re ahead of the crowd, you’re aware. You’re prepared for what’s about to take place. You recycle the trip into the first move into a new house. You’ve arrived and it’s black. The only way is up. You know this, you read yesterday’s paper today. I enjoy the comics section. There’s lots of distractors that make me laugh. I’m in it to win. Sunday comics are my favorite. You are on your way back down. This is where distractors get fooled-they continue. You have already taken the fork in the road they were too busy to see. Too bad for them … at least they will coast into the shoulder before they break down. You- You’re well on your way across the state. Check out the rest stop is a blast, it goes sideways. You knew this was coming, you read the paper. I delivered papers on a bike when I was 9 . Do you understand the importance of 9? Three x three equals nine. Those who know, understand the power of three; they will be successful. Containments contain themselves within three. It’s s a fascinating route. I had a paper route which I still adhere to. It’s time for me to read the comics, I enjoy the laughs.