Jack Hershey, Question??? You talk about trading using the 5 minute charts with the future's market. Could you explain "why" the 5 minute chart? I've traded the 1, 2, 3, and 5 minute charts. I prefer the 2 minute chart myself. But, I would like to hear all your reasons for using the 5 minute charts, especially using volume. thanks... snarlyjack
but if a mechanical system continues week in and week out to produce high quality entry signals that either produce many positive points or makes cutting losses, which are seldom seen, very short, why do I need p/v..s/r......oscillators, etc?
If what you do is producing those consistent signals and profits, then you don't need anything we are discussing here. Good trading to you. And since the rest of us are trying to assist others and all you want to contribute is sarcasm . . . we don't need you here.
For what I do (SCT) and on the charts I use, volume leads price with respect to the signals that my display gives me. I extract money from the market continually by reversing at the time the market changes the sides. The 5 minute chart fits nicely into the frequency of my data collecting. It is more or less common knowledge from past prints that my maximum reversal activity can reach three times in one 5 minute bar. I do a routine that invloves four separate mental processes, one of which is collecting data sets from my display. I have posted my screens and the way my eyes move to do that. From these, you can see that I start at a place and only take data until I have enough in the set to do an analysis. The general two classification subsets of the analysis conclusion are the components of the MODE of the market. During most of the day I look and analyze and the mode is CONTINUE which stands for continuing to make money on the right side of the market as price moves with the trend. I monitor three levels of trends on the display. This is foreign to most people as a principle or concept. About 20 to 40 times a days the MODE of the market is CHANGE. Here at these times I carve off the end of a trend and the beginning of the next. A reversal trade is what is done. You do not do reversals; you enter and exit and do not take data while you are in a trade. For me the whole day is one of relaxation and being comfortable since most of the time I am continuing to accumulate profits. 20 to 40 times a day I take segments of profits and my print grows longer with each new row. There are 81 bars (5 min) in the day and you can see that dividing 81 by either 20 or 40 shows you that my periods of time for the segments of profits normally varies between 4 and 2 bars or 20 to 10 minutes. You were in the market for 6 minutes today to make some money. That is two bars and there were 79 other bars to trade also. On volume I have a bouncing ball. 10 seconds into a bar it appears at the value the volume bar will reach in the next five minutes. This means I see the bar forming and I see the ball and I see the gap inbetween the ball and the top of the bar. These three volume values are always available to me so that I can see how the price bar is forming as I continue to make money. I also have about 17 leading indicators of price movement on the 5 minute price bar. They take two screens to depict. Most are pictograms that are each like a 1000 words. My job is to do what the market tells me in the present called NOW. I care not about anything else but NOW. The market is always correct and it always gives me a moving price and I just stay on the right side of the trend. I do 81 bars a day and every bar affords me the opportunity to make money every day of the year. I montior by sweeping things on my display, a lot of which are coded from the data feed. You have not had several experiences that would be important to have. I hope in the future you get to see the market operating. So far you do not have a display that is an excellent one that allows you to see the market. This is very common for most people. They tend to "invent" what they want to look at. This denies them the opportunity to see the market. You also have never gone through working with someone who can see the market, narrate it and trade it day after day without flaw. Believe me it is an experience now that the PC and the web has been invented. You also have never had the chance to go through the process of looking at 6 and 1/2 hours of trading in 40 minutes where the video is stopped just as the 20 to 40 actions come up for reversing. Here you would get to see all of the leading (17) leading indicators fall in place and then see the tick chart (range 1 tick) go throught the 2 pair phenomena at the time the trend ends and the new trend begins (on the appropriate of the three possible trending levels). Volume exhibits formations and patterns just like price does. These volume formations lead the price formations and in combination they visually demonstrate the P, V relationship flawlessly. I posted an excel spred sheet on how much money is made per day for practitioners on three levels of expertise. Before beginner a person goes through a process of looking the markets over. I call it assessing. You may begin to look the markets over at some point. But you have to have a way to do that. You still do not have a way to look at the markets so none of this will be very helpful to you. On page 130 of the futures journal is an attachment that a person working on SCT made as a consequence of organizing all of the posts in the journal for the first month. He also attended the four days training in Tucson in late January. He also attends the IBD MeetUp in Tucson and is a full time student at UA. He will be 21 soon. He is looking at the markets daily when possible. He will be teaming up with some of the people that have moved to Tucson for trading purposes. They trade together at this point. I am not very mobile at this point but I will drop in occasionally. The reason I responded to your question is simply, once again, I am taking the trouble to paint a picture around the place you may actually look at someday. We use volume as one of the measures to determine how many cars to have at play. 10 ....20 ....40 ...50... It is a case of knowing the pace of the market as determined by volume. It is how wide the pipeline is open to flow money into your trading account. We also use volume to determine the sentiment of the market. Sendiment tells you which side to be on. A 7 point run today on the coarse level of trading for 50 contracts in ES would net a few bucks for that particular segment. This net gain in the account for this brief segment is just 100 times what you made today. You have a writeup on this available to you on page 130 of the journal. It has a table of contents and you can punch it into a three ring binder. It is in color. The chat room discussions that were done are there too. They are illustrated in the chat dialogue by what was going on in the market during the chat. You are at a time in your life when you can still learn, I think. You have a choice of learning repeated failure or learning how to be a very wealthy young man. Don't let the opportunity to learn along with others (by just listening in your case) pass you by. See if you can get over "inventing" and BS'ing for about 6 to 9 months. This is a good thread...don't foul it up.
Jack, I appreciate your response to my question of the 5 minute chart and volume. So far I have studied the 2 indicators that I know you use: 1). Stoch 5-2-3 and 2). Macd 5-13-6 Along with volume bars. I can see when the stoch crosses the 50% line that you would reverse your positions from long to short and vice versa. I have counted the points on the (YM 2 minute chart) and it could be very profitable system. Next week I'll set my computer system to the 5 minute chart and trade it for awhile and I'll let you know what I think. Also, I did get rid of my "OmniTrader platform" for several reasons, and I am currently using E-Signal charts. For the SMA3 + 2 horizontal shift capabilities that I really like. However... ***I am looking for suggestions for a better "trading software program" if you would like to suggest one???*** I hope your health is holding up and we do appreciate all your help and history of the markets and trading. There are not many people out there with 50 years of trading experience!!! Once again, thanks... snarlyjack
This guy is nuts... "I will talk down to you and you will kiss my ass because you hold out hope you will understand my method and be beholden to me."
If you are calling Mr. Hershey nuts, and truly believe that, you have a high probability of failure in this business. I personally wish he would quit giving the gold so clearly. Simply put, he is giving away real trading systems that work all day everyday. Most here, don't deserve what he provides, as they would stab anyone in the back to gain a dollar. Jack Hershey puts it in words, if you can't see it, then your loss. Every bar all day...get it..? by the way, prof i paid as much to be here as you. ignore button works very well....for you and lamont sanford
His filter is 80% effective in normal populations, apparently. On ET it is more like 95% effective. Where have I seen that number before?
--------------------------------------------------------------------------------- I suggest you don't walk around the street with your eyes closed, you might just miss the good things in life!