Yes, by either observing in realtime or by seeing how the faster timescale built the bar. One could be defined as the path of least resistance and the other as the path of greater volatility. From my pov, whenever the close passes the open as a momentary doji, has the current bar be 'more like' greater volatility. To stay on the current timescale one would have to 'pencil in' trendlines and bookmarks as the bar goes through a sequence of transformations and erase these at EOB to get the chart from getting too cluttered. That's why having the YM 2m up with the 5m ES supports the effort of extracting the market's full offer. It's like a goldilocks zone.
More or less. More with SCT and less with RDBMS. As nir suggests, best not to get caught up in terminology. BBT's are a helpful distinction which (from what I could tell) came about in response to struggles at a particular moment in time. They were very helpful to me in getting past a particular crux when first understanding tapes/traverses/channels. Even though there are many paths up a particular face of a mountain, a particular face has a commonality of slope as it relates to ridges and ravines. In pursuing 'extracting the market's full offer,' the natural tendency pulls one to explore and get distinctions around faster and faster fractals. All the concepts overlay each other as layers, with any particular layer coming to the front or receding to the back as a bar and sequence of bars builds. Currently, what I refer to as tapes in this thread, calling them BBT's would work too. If one chooses that translation then what's important is to maintain the distinction and apply it consistently.
This frequency of trading is informative and supports understanding his systems in general and RDBMS in particular. It was a focal point for me to unlock some puzzles as it relates to sequences of FS's, Routine, Complete, Incomplete trends and how they function together when linked by turns.
The biggest "stumble" for me regarding BBT's is that they (primarily) do not show as gaussian-like or even as container-points volume. Therefore I have maintained a "pre-tape" disposition to them. RDBMS changes that "somewhat", but only in the context of the construction of the tape. In practice, much of the time, I look at the tape as my trading fractal... BBT > tape > channel. It's a very comfortable trading resolution for me... in opportunities, risk, and number of trades. But of course, that is dependent on the methodology, container points and gaussians -OR- RDBMS -OR- a combination that is being employed at the time. Volatility matters too. Trading, like life, is dynamic. I think it's my Spyder and Mak upbringing... their trading did not/ does not SEEM as "hyper" as Jack, to me.
On the subject of trading tapes, recently came across this chart, here is the prequel by Jack; Quote from tradingjournals: Any area of study has laws. What are the natural laws of trading? I suggest the laws be numbered to support ease of reference and discussion. You are correct. the markets are a system of operation. Systems have three facets: structure, process within the structure and results of the process. There are 56 unique pieces that form the whole system of the market's operation. Each piece is precisely defined as unique. Two theories bound everything about the system of market operation. One is Keynes's algorithm theory and the other is Carnap's logic theory. From these it turns out two hypotheses (HS) fully define the market system of operation. Their parametric measure (PM) is the vector. A person can become expert in taking the full offer of the market in 20 to 40 days, if he builds his mind from scratch and has no erroneous beliefs about markets. He learns the laws in this order: 1. The psychology of the market is unchanging and based upon human nature. 2. The market has two variables: the independent variable is volume; the dependent variable is price. Most mathematics works with two such variables. 3. The system of numeration of the market is granular and not continuous. Thus the mathematics that has utility is dictated by the resolution of the PM of Keynes a vector and the granularity of the variables. 4. Information in markets is handled in bundles; timeframes are common. Bundles are commonly called bars. 5. Each bundle is relative. Therefore a RDBMS is of highest utility. 6 All timeframes allow at least three interlocking fractals to be observed. 7. Markets ebb and flow and cycles are formed. The fundamental cycle is an alternation of two vector oriented trends. 8. Trends have three parts: beginning, middle and ending. Trends overlap out of necessity. 9. One two variable pattern emerges to show the cycle. (The Pattern) 10. The logic of the system of the operation of the market can only be handled by Boolean Algebra. All pieces of the market are defined in Boolean terms and expressions. 11. The market can be fully automated using the logic of Boolean algebra. Thus, the market is fully described in finite mathematics. 12. The flow of the market can be shown as an integrated set of Orders Of Events (OOE's) since time is NOT a market variable. There are five ranked functional OOE's. There are some neat facets: a. Price has 10 unique RDBMS cases. b. Volume has 11 such cases. c. There are 35 unique End Effects. Lower level significant details include: d. There are three type of turns in markets. e. There are four types of trends in markets. I'm sure everyone knows and uses these things. There is nothing new about markets. <snip> https://www.elitetrader.com/et/threads/natural-laws-of-trading.279359/page-2 This is a bit of a rare chart in that there are annotations regarding trading states. Furthermore, as anyone working out the method there are differences in the personal application of it depending on their developing spectrum. The thing to note is the preponderance of FS's and that instead of it being interpreted as a misapplication, it's a sign post that one's on a productive path.
Another one attached. Log Page 1 Attached, I will re-post Jack's chart also in order to access it easier. https://www.elitetrader.com/et/threads/market-system-of-operation.280654/page-21#post-3921502
I've been reading up on some of the Jack's book recommendations, currently, Conners-Hayward's work in Investment Secrets of a Hedge Fund Manager. The research led me to this thread: https://www.elitetrader.com/et/threads/are-there-indicators-that-help-spot-breakouts.132707/ In it is an exchange with one of Jack's longtime critics - trader666. It's been a post that I've been looking for in terms of Jack's response to trader666 backtesting results of the PVT method. The thread had these following SCT charts, but the thing I found the most value are the diagrams that interchange other components in the structural model of perception - space, shape, and movement posted later in the thread. Enjoy! Advanced beginner trades w/day Intermediate w/day traverses Advanced intermediate - trading tapes of traverses
Hi guys, My cousin recently showed interest in learning how to swing trade as his buy and hold method is not working in this market environment I told him I don't recommend trading because we all know how painful it is to learn and I didn't want to be the cause for his first account blow outs. He was kind of adamant about learning at least how to manage his portfolio so I figured I might as well point him to the PVT stuff. My question is, where should I point him to for starting? I personally haven't traded PVT on stocks (focused on futures SCT and RDBMS) so this seems like a good opportunity for me to learn it as well. From my reading of Spyder's thread, my understanding of it is we first select high quality stock list (EPS, floats, price, good moving cycles, etc.), score the stock according to trend location and indicators, wait for the stock to have B/O volume higher than DU on PRV in the morning, enter and set your targets and stops. Does this sound about right? I think Spydertrader exited if the volume at the EOD didn't reach expected amount or stopped out at a certain percent move against entry. Targets were around 10% if I remember correctly.
attached is Sprout's amazing work on the road map for the different applications of the method. some of the websites discussed in the equities threads are not operational anymore(wealth lab,stocktables etc...). kudos again to Sprout for his effort and for sharing this