Market System of Operation

Discussion in 'Journals' started by llIHeroic, Dec 19, 2013.

  1. llIHeroic


    Please take a moment to understand the purpose of this Journal. The purpose of this journal is to learn the complete market system of operation by transference. In order to do this, we will create a positive learning environment. If you do not want to be part of a positive learning environment, save all of us some time and do not participate in this thread.

    VERY IMPORTANT: We will begin this journal with the assumption that the market system of operation is fully known, and can be used to extract the full offer of the market every day.
    THEREFORE: There is no need for any discussion of proof, or any dissenting personal opinions of the established purpose of this thread.

    If you are not willing to make a positive contribution, do not post in this thread. It is as simple as that.


    Now that we have established a framework which will allow us to avoid disruption of the learning process, we can begin to begin the transference. It will start from the beginning. It is recommended that serious learners archive, store, and organize the contents of this thread along with the required work in order to help the transference process go smoothly.

    Jack Hershey will be supplying content for the learning process from beginner to expert with a planned schedule of 20 days. I will be doing my best to perform organization and maintenance on this journal when needed, and to help learners in any way that I can. Participants with all levels of knowledge are welcomed.

    I think this is all for the housekeeping items. We will continue to adapt if obstacles are encountered. Thank you to everyone reading this.
  2. llIHeroic


    Here are four breakthroughs that have been given which will save us time in the process of learning the market system of operation.

    1. All variable in the market are granular.

    2. Two important market variables have a significant relationship with each other. Volume is the independent variable, and price is the dependent variable.

    3. It is an established truth that if the independent varible, along with an equation is known, then the value of the dependent variable will be computed.

    4. Price change creates the ability for money to be made in the market.


    We will be doing work in order to transfer the conscious knowledge we obtain into the unconscious mind in order to become an expert.

    The first piece of work to be performed is to draw all the possible positions that two adjacent price bars can have in relation to one another. Please note that all attempts are welcomed. The exercise will be reviewed and the terms will be defined at a later time in order to provide an opportunity for participation.

    More content will be coming shortly.
  3. Thank you so much for starting the journal. It will be a pleasure to support the transference of the sytem of operation of markets.

    I will deal with the substantive content of markets, the tooling needed and the routine for participating in markets.

    The exchange is that you all will help solve local problems of your choosing.

    OODA is the CW routine. BF suggests that iterative refinement may be used to perfect plans, strategies and routines. "BF or BS" is a good read and it is found on the home page of Behavioral Finance (BF) website.

    Switching from betting (OODA) to "anticipation" can be a challenge. BE DO HAVE does away with the challenge. BE an expert. DO as an expert. We will transfer the system of operation to you. In 20 days the HAVE will be yours as you work as an expert.

    Minds cannot be erased easily. The biochemicals are available but the process of their application is more difficult than doing a work around on the garbage tht is already in place.

    you will be constantly sensing three things: space, shapes, and change of shapes. Your eyes focus on these things and your retinas funnel the information obtained by the optical nerve to your brain where you built mind operates.

    We will build the mind so the long term memory helps you out.

    Let me explain.

    Two bars present themselves in a rectangular space. This space is a place that bounds what we look at. It is our focus.

    The bars are creating a shape. As data is delivered in real time one of the bars is active.

    We observe. The shape is built and it gets finalized. That is we watch the shape change.

    With respect to the mind, in it there is long term memory (LTM).

    Read this: OODA CW BF BS BE DO HAVE LTM.

    OODA is explained by John Boyd.

    Conventional Wisdom is what the world uses in the financial industry.

    behavioral Financel is a field of study.

    BS is well known to you in your long term memory (LTM).

    Verbs abound in language. I use three to transfer and to make your processes work for you.

    We are going to use one equation for everything.

    Perception (100%) equals sensing (10%) plus inference (90%)

    Perception is "knowing that you know"

    Sensing is space, shapes and change of shapes.

    Inference is LTM. Go look up LTM if you do not perceive LTM is long term memory.

    You're an expert so you know you know all of the above.

    Reread his printed post that is on its own page in your three ring binder. Reread it fifty times in the next few days.
  4. We will use a routine that replaces OODA of the CW.

    We will use a space and Monitor the space.

    We will analyze the space as well.

    As we look at the space we will add to it. We will use:

    a. color.

    b. annotations in the form of:

    1. letter groups,
    2. shapes with color.

    c. arrows
    d. containers
    e. rays

    By adding things we are better able to detemine relationships. We add math degrees of freedom.

    The theory of relativity is well known. All systems are organized.

    Notice how neat the american flag looks. Go to a space containing an American flag. Find your specifc star of your state. Or put your flag in the order of its appearance on the correct staff at the UN.

    Did you kindergarten teacher draw the rainbow upside down?

    Why did God spend the seven days in the order he did. He used relativity.

    As we use the system of operation of the market we enhane it to always "know we know" all of the time.
  5. Lets throw a variable out of the space.

    throw time way.

    We will count bars on the five minute. there are 81 a day. On the thirty minute use will see bar numbers too. they "count" by sixes.

    We will swtich to orders of events. we will do piecework.

    Review the periodic table. As you see it is organized in an orderly way. The periodic table is finite. Everything in the periodic table is GRANULAR.

    You will be given the periodic table for the system of operation of the markets. Just as in chemistry, it is possible to use the market ingredients to make things that serve a purpose.

    Elements are used to make useful molecules.
  6. Lets review.

    OODA is what is used by most market participants.

    we trade with anticipation so these traders push us.
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  7. we have agreed that the market moves in cylces.

    Here the cyle is shown using three market variables: price, volume and Accumulation/Distribution.

    A lot is to be learned from this chart.
  8. Again lets look back at at our "perception" equation and the flow chart for information.

    Our 20 day objective is to build the mind so it has a complete spectrum of facts for the "inference" of perception.

    What this means is that when in a space, shape is seen, then the chape changes to a trading context we "know we know" the context in 10 to 100 milliseconds.

    We monitor and analyze and then we decide and then we take timely action. the M to A to D to A is our routine. MADA.
  9. Vocabulary drill.

    On the illustrations I will be posting, pairs of bars will be put in boxes and the boxes shaded with colors.

    These are boxes that explain the statistical significance of the last bar in the shaded area.

    For any shading of last bars in boxes the last bar has no statistical significance.

    In trader terms, this automatically lightenens the work load.

    The work requirement is to log the bar as a WAIT event. You have a 300 second wait on your hands.

    Attached please find the 10 cases done as a book illustration. They have letters assigned and next to the assigned letters you can find a unique name.

    Two make money and 8 are waits.

    I will post the math for adding the boxes to any chart.

    Notice every bar every day oncerns you and you have to know you know for every bar. Your computer will work on every bar for you. In turn, you log the bar name on the 81 row log. I will post the blank clean 5 minute log which is a landscape five pages long.

    I any readers are watching who log. please post a current page of your log and, if possible, post a clean 5 minute log to save me the trouble.
  10. llIHeroic



    Thank you for choosing to act and assist the purpose of this thread.


    Also, here is an updated log that I have created two days ago in case we would need it soon.
    #10     Dec 20, 2013