If bar 4 is P2 but held inside P1 then it's like having a smaller fractal with bars 2 and 3 within the lateral boundary? If bar 4 sticks out like it did here but seems to have shifted gaussian it provides an ending event to the previous trend (traverse)? I'm not sure if I'm understanding it right. This is the first time hearing anythig about rev chron and retro for me lol
Yes. Not sure what you are referring to about bar4. Jack methods are encapsulated in PVT, SCT, SSR and RDBMS. Each have concepts that build upon each other. RDBMS was the last iterative refinement of his methods which defined volume in exact terms. RDBMS is also known as JHM 2.0. Rev chron and retro are part of the VTP which is the core of his RDBMS implementation. The VTP requires degapping (mentally or with software) and logging bar-by-bar. By doing drills and focusing on annotating price tapes/traverses/channels and the OOE, you are building the skills and toolset required to understand what Jack was all about.
Can you point me to the right documents or posts regarding JHM 2.0? I'd like to have the basic idea of what they are all about so when I do drills I have something to build on. I thought I feel like I'm missing something, although I've been reading SCTlearning from scratch thread and market system of operation thread and read something about RDBMS in there somewhere. Bar 4 I was just relating to the same example you were providing.
@Sprout: I appreciate your knowledge of JHM, but "requires degapping"is NOT true, and should not be presented as such. 1) Jack referred to (time-based) bars as "bundles of data". The "bundles" idea can be applied to ANY OHLCV chart, time-based or not. 2) Jack did not believe TIME to be a factor of market operation. Yet, in many areas Jack makes reference to clock time as periods when specific events or occurrences tend to occur. If clock time periods can be recognized, then by default, duration of those periods is recognized. Time is, or it isn't a variable. Jack has presented time as a dichotomy, both sides of which can not be simultaneously true. 3) In an effort to create "continuous" bundles, bar-by-bar degapping was introduced. Degapping bar-by-bar does create a more continuous look at bundles, AND/BUT time is still present within the bundle. A 5 minute bar is a 5 minute bar, regardless if OHLCV variables have been altered or not. Degapping perverts the Y-axis of a standard price pane, making price non-usable for trading (what dependent variable?), while maintaining the X-axis. And since volume is not altered by degapping (which it should be to account for volume created by the price alteration(if any) up or down), the independent variable (along the X-axis) is not reflective of the matching price pane bar. Non-time-based charts remove the time element completely. Why did Jack choose time-based? And then adulterate the Y-axis? Jack wanted to trade with volume alone. In his attempts, he could ALMOST trade with volume alone. I leave the reader to decide the meaning of ALMOST in that context. Back to trading.
I suppose “No need to do anything” means do not simtrade on the first stage but monitor and differentiate continuation VS change although I didn't "get it" by now, my obsevations are: 1. better to monitor 2 identical charts 5min ES RTH, first chart with global channels, the second with intraday channels. No need to hit spacebar and lose focus. 2. try to grasp point 3's of traverses and channels as soon as possible and consider that points as points of continuation, and therefore points of stepping in market. 3. try to grasp FTT’s of traverses and channels appearing as peaking volume bars and consider that points as potential change. Therefore do not reverse but exit the trade if in position. Am I on the right track? Go back to market replay drill…
Doesn't the time based chart give a better organization of volume "pace" compared to say constant volume bars? For example, peaks and troughs by definition sort of needs time based interpretation to locate. Plus time based chart also tells you the money velocity that Jack mentions by ranking volume levels at the moment until pace changes with ve or something.
I appreciate the discussion, follow your logic and would agree with you (pvt, sct). However for RDBMS: 1) I've tested the concept and logged bars both ways to understand the difference. My statement comes from my own due diligence and verification and would encourage anyone to do the same. 2) Jack, in his own words
lol, in re-reading Jack, I'm always experiencing "how did I miss that?" You know you better than anyone. For me my progress with the material started when I printed out threads and associated charts, put them in separate 3-ring binders and marked up the pages with my understanding of the concepts with personal notes. In wasn't the volume of content that made the difference, it is the diligent processing and integration of the concepts. Jack describes it as building a resource. For me, finding keywords, combination of keywords and dates supported relevant search results. Building a map is super useful. The next ramp up in understanding was doing the 20days to expert drill by actively logging bar-by-bar. The logging makes such a fundamental difference, it is the reason why Jack promoted it so much. Making different logs to explore the relationship between variables also supports differentiation. The heart of MADA is observation combined with logic and deduction coupled with decision and action on every bar. It's a mental gym. As for bar4, a posted chart would make your question clearer.