Thank you very much for your help, always appreciated. Attached is the script I think you are refering to. I am at half of the Exact Science thread. It takes me time to read all JH's posts, there are a lot in this journal. By the way, all he develops overwhelms me quite a bit. I notice all this is more than anything SCT oriented, and not RDBMS. I mean, I see many vocabulary of SCT method, but never some things explicitely related to RDBMS terms. It appears at the moment to me as a parallel zone of knowledge that does not fit to what I am searching for. I have to reorganize a bit my mind by the way. I am ok with the RDBMS. I know I need OTR chart (I don't understand nor know what is is yet), YM 2min, ES 30min, DOM and T&S chart, in order to be drill a bit more until carving thr turns to the tick and thus, extract the full offer of the market, am I right ? That's what I understand at the moment. Recently, a new piece tot hat has been added : PRV. I know how to calculate it and I must add Pepe's script to TV which is not the kind of task I am good at. Anyway, I'll manage to do it with or without help. I hope this will not take me too much time. As I said, I'm a bit of saturated with the Exact Scienc thread at the moment as I don't manage to see what in this journal, is important for the elevel I am at currently. Therefore, I will not dwell too much on this journal and before going back to it, I will now re-go on Spyder's JH's Futures Journal and the litterature about T&S and DOM charts. I understand what YM2min is, although I'm not sure how there is to use it. Anyway I know what is missing me, at least, before extracting the full offer every day is : - T&S - ES 30min - YM 2min - OTR charts (on ES5min and YM2min) - DOM - PRV I have cleared up a bit the PRV concept and its calculation. Great, but I don"t know yet concretely how/why/when to use it. I am at the same point with YM2min. I am clear with what 30min ES chart mean, although I don't know either when/how to use it. Where I am at zero knowledge nor any understanding are OTR, DOM and T&S. As I find myself blocked with further and deeper comprehension about PRV, YM, ES30min, I think the good thing to do is to go on another field that must be unlocked too and those areas are OTR, DOM and T&S. Once I have made some progress on those three items, I will surely have already unlock some pieces of the PRV, YM and ES 30min, and so will I be for sure able to end the Exact Science thread and find more sense to chat is developped in this thread. I may add that the flow cycle sheet and the 11 sheets that follow with the story of nodes and links etc seems hard to me, I don't get what's the link with RDBMS. I feel like if those items have a bridge with RDBMS but I do not see it. I need to improve somewhere else before going through this again, thus why I choose for next coming days, to pause my work on it and to enter into the last items that has been presented to me as requirements for drilling from coarse to finer view of the HRE : DOM, OTR and T&S. Any comment or interaction is welcome, thank you for the support. Effectively @Sprout , it's good for the state/area I am at the moment, to have hard skin. It's been a while since I lived the work so testing.
I'm done for today. It has been a full day reading. That's the most relevant I've compiled as for STR/SQU for now. Page 332 of Spyder's Journal. STR/SQU With the arrival of April (and oddly enough, April Fool's day), we move to the next portion of our syllabus - Stretch / Squeeze. What is Stretch / Squeeze (STR/SQU), and how does it work? Why does STR/SQU create a dangerous situation for those individuals who choose not to use it correctly? How does one calculate STR/SQU? To understand STR/SQU, one must first understand how the futures and cash markets interact. In a general sense, STR/SQU seeks to provide a 'signal for change' based on fair value in relation to the premium. For Jack's explanation of STR/SQU, see this post. For a detailed discussion from last year regarding STR/SQU, review this discussion. STR/SQU creates a dangerous situation for a trader who fails to use it correctly because doing so places the trader on the wrong side of the market. As I discussed in this post, a trader on the correct Resolution Level only monitors change at certain 'Action Points' throughout the trading day. Just as we have seen with all other tools, we also need to use STR/SQU only at those same 'action points.' In other words, using STR/SQU at the incorrect time can cause negative results. To calculate the STR/SQU we use the following formula: ((YM07M -INDU) -'offset') Several methods exist for calculating the 'offset' value. Some have chosen to use the 'premium' value from indexarb.com, while others, choose to simply use the offset created by the difference between the YM and the INDU to 'zero out' the formula. In this fashion, one can chart the STR/SQU value over time (using a one minute chart of Histogram design). Mak has used a third method for STR/SQU comparing the ES to YM while adding some IF1IF2 logic for good measure. Determining which method to use for each individual trader, best results by, determining which method works within a specific charting platform (or Excel). For Qcharts users, Place the following formula (copy it exactly) into a quotesheet, and create a one minute chart of that formula (in Histogram Style). See attached screen capture. ((YM07M -INDU) -72) <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1420617> Please, remember to recalculate the 'offset' value (at minimum) prior to the beginning of each market day. On occasion, one will need to recalculate the offset intra-day. When you see the STR/SQU values 'skewed' to one direction or another, you'll know it is time to recalculate. I calculate the 'offset' value using the close of the 15:58 PM Eastern Time bar for the YM and the close of the INDU. I recalculate during periods of calm (e.g. CCC or no price movement), when noticing my histogram skewed away from the zero line. In an environment where the futures lead the cash, we say STR/SQU provided a signal when we see levels exceed +2 (Stretch) or fall below -2 (Squeeze) on our chart. In other words, STR/SQU provides both signals for continuation and change. When STR/SQU falls within the -2 to 0 to +2 zone, we say STR/SQU sits at neutral. By example, if a trader had just entered short, a 'Squeeze' signal (below -2) on STR/SQU provides continuation. However, had the same trader entered long, the same 'Squeeze' signal (below -2) on STR/SQU, provides a signal for change. Keep in mind, we use STR/SQU only on our 'action points' as determined by our individual Resolution Level. To monitor STR/SQU manually, feel free to use this log file. O.K. So where do we go from here? Spend some time monitoring STR/SQU through the day. Learn how it can provide two different signals within the same bar during periods of High Volatility. Note also, how such a fine level monitoring (Bug Level) currently sits far beyond our current focus. Take some notes to 'see' how STR/SQU acts around FTT's, Point Threes and Spike Bars. In other words, spend some time learning this new tool before working it into a regular position within your monitoring paradigm. Lastly, If a trader has not yet spent the appropriate time monitoring the YM and the ES, or if a trader hasn't yet mastered PRV Volume, Price Channels and Gaussians, then one should not add STR/SQU until completing the previously mentioned tasks - and practiced to an appropriate level of proficiency. Stretch / Squeeze provides a signal for continuation or change. 3. As I indicated in this post, one should not look for STR/SQU to provide a signal for change or continuation except at the Resolution Level action points. 4. In order to seek a correlation between STR/SQU and ES Price, one needs to use a combination of STR/SQU the DOM Levels and Wall changes, as well as Trend Lines and T & S. When no information exists to indicate continuation or change on the other tools (ES, YM, PRV, etc.), we look to the STR/SQU I look at STR / SQU only in the now. Remember, STR / SQU does not represent the 'silver bullet' of indicators, or the 'end all be all' of signals. In addition, STR / SQU does not represent a 'confirming' indicator. STR / SQU simply brings the trader a step closer (with 3 steps left to go) to the point at which change occurs in the market. I started using STR / SQU on a 2 minute time frame running the STR / SQU chart underneath my YM. While discussing several topics with Jack (in his kitchen), he noticed my display and instructed me to change the STR / SQU to the one minute time frame. Just as a stronger move in the STR / SQU represents a more pronounced move in ES price, so too does a 'sticky' move (one that seems to linger) allow us to anticipate a more sustained Price move compared to a STR / SQU 'quick pop' which immediately returns to the 'noise' area. In other words, sustained and big are better than quick and small. Many things in life seem to mirror this same paradigm. Depends on the context. If I held a long position, and watched STR / SQU jump up to +10, we have continuation. On the other hand, had a held a short position and observed the same +10 jump, I'd have change. We look for sufficient data sets. As such, we do not make decisions off single data elements. Now, if you alter the question to say, "If Price was sitting on the left trend line of an uptrend while you held a long position, and you saw a -10 on STR / SQU would you immediately reverse?" The answer would be a resounding,Yes. Now having said that, Once a trader uses an Intra-bar tool, they must stay with that tool (continue monitoring) until the bar closes. The reason we do this stems from the fact that multiple Intra-bar signals (in opposite directions) can occur within a single bar (due to the volatility you spoke about). In other words, we continue to monitor Intra-bar to make sure no other signals develop prior to the bar close. We then move to bar-to-bar tools (PRV) to make sure we see what we need to see, and finally, we move back to the Coarse Level tools to continue our 'sweep' of the data ("What do I need for continuation and What do I need for change?") Combine DOM with STR / SQU and Volume which shows decreasing red and black bars, and you have all the information you need to stay on the right side of the market. Channels, Gaussians, ES, YM and STR / SQU should provide all the requirements needed for profitability. DOM, T&S and Tic Charts simply permit 'carving the turns' much closer to the actual 'signal for change.' In other words When Jack traded these methods (on hand drawn charts, mind you), he only had the S&P Futures, The DOW Futures, Channels, Gaussians and STR / SQU as his tool set. He did not have 20 SMA, MACD, Stochastics (of any flavor), DOM, T&S, or Tic Charts. As a result, it only stands to reason, that we should be able to do the same.
Comments within quoted text. Within the script, you have to update the referenced ES contracts to the current ones. With the PRV script, add it to your favorite scripts, add it to your chart. Save chart. It'll show as a separate volume pane.
STR/SQU is an advanced topic. It also will be difficult to implement if you do not have programming skills.
I am ok with the RDBMS. I know I need OTR chart (I don't understand nor know what is is yet), YM 2min, ES 30min, DOM and T&S chart, in order to be drill a bit more until carving thr turns to the tick and thus, extract the full offer of the market, am I right ? No. You seem to have an expectation that once you have a particular aha, everything will fall into place and you can easily be in the market, steer and turn to stay on the right side and extract it's full offer. It might be that way for you, I dunno. I do not have any expectation other than if one follows every step and item exposed by JH, one will find him/herself condemned to be able to extract the full offer of the market at any time. I am not referring to what I think or believe or expect or hope or anything of the kind. JH states once one can properly ID PCs which is 10% of the knowledge, perform the VTP and ID the correct volume element and/or EE, then the correct turn on the MT, then whether a move reversal is there or not on the MR table, and finally have the three arrows on the log, then one has nothing but all the reasons to be in the market at any time and on the right side of it. I am referring to that. AND I am also referring to you when you said that by incorporating OTR, DOM, YM 2min, T&S and 30min ES chart, to what I am already capable of and skilled for, then I would be one click away from drilling up and down from coarse to finer detail. This sounds great for me. I know it is. So to avoid any confusion, I don't have any expectation of a given Aha that would lead to be easily exctracting the full offer of he market at any time, except if you implicitely think that the given Aha is the last. Being as no JH's student has had the exact same path, logically all of them (talking about those who finally reached the end of the comprehension path and extract nowadays and since several years the full offer) had a different sequence of Aha's in a row, until the last one gathering it all and leading to advanced expert level on RDBMS, which as you rightly say, is a refined SCT. Thus, I do not think there is ONE Aha in particular that will lead me to what I want, I just KNOW once I have it all understood, the final Aha will just be the last one in time, not necessarily the most powerful one. Am I understandable ? Until you start paying for a datafeed, the YM, DOM and T&S won't be accessible I know that. And I also know it's not because of not having the OTR, DOM and T&S on the display that I can't study them in theory. I have been, in private, clear to you concerning the money I have for living and what I can let myself spending. The time for datafeed and a funded account will arrive in next January. Thus why I only have the choice the be patient until January comes, and in the meanwhile I study all I can cause that's what my determination and stamina tells me to do. As you redraw the Dominant Segment Cycle 1 - flowchart; first by expanding it (I use 2 11x17 shts) so that you can become familiar with the distinctions as well as to draw a 2-3 bar visual example for each node that requires one. As you drill through the 3x5 cards through the flowchart, you'll see how RDBMS was a natural extension and refinement of SCT. You'll see how BO,T1's and BM,rev's and PP!'s get processed through the flowcharts. With RDBMS you've explored patterns, now the focus is on cycles that operate within those patterns. With Jack, the journey is the reward. Each step when taken reveals the next and one progresses quite naturally to trading live. What's important is reading for comprehension and doing the drills. It's my task now. Understood.
One great thing about day trading (with real money) is... there is minimal wait time for results, good or bad. One terrible thing about day-trading (with real money) is... there is minimal wait time for results, good or bad.
"Well, at least, we have a market now defined by a few principles that can be integrated and keep a trader in the market all the time and on the correct side of the market. Here are the principles: 10 cases of adjacent bars which afford a person a consistent measure of the first derivative of the two market variables P and V. A single pattern (parallelogram) which covers the market at all times and is invariant. An interlocking arrangement of the pattern so that the patterns are nested as fractals in a specific invariant ratio of events. So many things can interfere with thee principles; usually a plethora of artificial aids overwhelm and bury the essential principles of trading. The combination of principles into an integrated powerful system is done using a deductive reasoning approach that is most common in Science and comes as an application of the Scientific Method. The market variables are integrated into a whole and measured according to the most rigorous standard. The whole is called a Hypothesis Set (Paradigm) and the precision measures are called parametric measures. Para, a prefix, is found throughout this foundation and the building blocks built upon the foundation. Because of the human nature of making money by extraction, there has to be a way to touch base when anything can be amiss. The human notification is human negative emotions: anxiety, fear and anger. When things are right on the mark and proceeding logically, then the reinforcing emotions are support, comfort and confidence. Maintaining a trading partnership with the markets comes from a loop of ingredients. The bottom line in making money is using the correct facts in the order of events of the market. Market facts are normally known as 'tells'. They arrive in the space all the time. Clearing a path for information in trading is very difficult. It becomes less and less possible as time passes during the potential learning phases. The door gradually closes bad decision after bad decision. As a potential trader begins to learn, he HAS to ACCEPT the 'tell's of the market. NOT accepting is not a possibility. ‘Tells' come from the market if a potential trader is watching the market. Most traders never get to see the market as we just found out. ‘Tells' begin the loop. Opposite is ACCEPTANCE. Further along and going toward the next 'tell' is a small tiny beginning thing called trust. By going around the loop, trust becomes more noticeable. Ultimately, a person learns the market is always correct. A myth of CW is that, if this ever happens, it takes about 10,000 hours. The alternative path is to get it straight on how the partnership works from the very beginning. What disappeared as this loop was traversed sufficiently to get things straight? anxiety, fear, anger. What was discovered to NOT be in the space fairly soon? Probability was NOT there. The principles and their integration brought about the mathematical basis of the system of the market and trader. Binary becomes very evident immediately. MORE than binary is the gerund nature of the parametric measures. Adjacent things are compared only. As time slips out of the picture the order of events become the milestones in lieu of time intervals." -Exact Science post 582 In addition, for more insight into the DOM; https://www.elitetrader.com/et/threads/what-kind-of-techniques-do-heavy-scalpers-use.91543/ posts 106, 107 As well as if you can find PointOne (member) "Futures Markets: Supply and Demand Dynamics" which he posted sometime in Feb 2007. are supportive. Also doing some searches under Grob109 will yield lots of gems. There's really no way to just skim over Jack's writings and derive productive meaning. They are informationally dense and as you are aware, every subsequent reading (with an open mind and willingness for personal DD) yields greater insights into the underlying principals of the paradigm that he advocated. Truth builds on truth to build a foundation of clarity when one builds their perception through drills as Jack proposed.