Wow, your journal of learning has covered a lot of ground in the past few days! Sorry to read of your poor health this year. As I recall, some time ago you wrote of a serious, long term recovery ahead for Liz. Best wishes to both of you for a sustained recovery. The quotation above is taken from post #148. For those of us working through to understand the Essence flow chart, would you consider posting a series for the ten boxes and a series for the sentiment from a recent day? -river
Jack, I have a question on post #154. When you refer to jumping fractals with Triads while trading, is it correct to conclude that by doing this, we override the three-tick early exit criteria and hold the triad trades even when price leaves the pink area as long as the triad hasn't failed? Thanks again for all of the content you've posted.
You wish to see a chart that deals with: 1. the trading platform flow sheet decision making (essence flow sheet) and 2. the market sentiment. On the right I keep the set of flow sheet boxes. As time passes and an independent variable EE comes up, I assign the trading decision at "lock in" which is usually before the end of a ber's forming 300 seconds. To get this straight I use the blue DOJI line that begins on the bar afer the prior 30 minute bar ends. (see bars 7 13, 19, 25, etc. A five minute bar's end is either long (above the blue) or Short (below the blue). Being conservative, I suggest to most traders that they only trade with market sentiment (go with the flow) and that they do not trade during nondominant times. In trading, entering and making a dominant profit segment often in volves locking in profits and wiating for the next signal. It is also possible to take a re entry if the domince returns. after an early exit. Also it is ture that you can take an early opposite entry ahed of the EE type signal. On this chart you will find "hold thru's when it is possible to trade from a dominant move and hold thru the non dom and then take more profits on the next odd move.
As a person leans aand beomes more skilled, then it is posible to loosen the three tick rule a little. This is done in two ways: just go to more than three ticks and use hold thru's that come from the triad rules and the 30 minute component rules. For me, I "know I know" about what is going on , often implicitely from over a half century of trading. Therefore, I know to sideline when no real money can be made. I also have the choice to be in the market ALL of the time and carve turns skillfully. I never do revenge trading or get into a greedy mood. As it turns out, most of the time you are concerned with giving excess money away anyways. After a while, as part of knowing you know, you recognize the market information flow has swung to an adjacent fractal. When you can see it, go with the flow.
Jack,may i ask you a couple of questions?Your paradigm,is it scientific or rather philosofic?And the second question regarding laterals sideway movement.You happen to watch the price move from right to left,where is the right and left in the laterals sideway? Thanks
Science and philosophy have a large intersection. Both are based upon reason and orderliness. I used the Scientific Method and the facts of how the market parts fit together. To discover a system you need to look at the smallest parts and assemble them into a complete system. A lateral is moving insignificantly as the future comes into the Present, the onlt place where measurements are taken. Bu looking at making money, you consider the market sentiment established by the 7 interlocking fractalts. You observe the Right trend Lines in each fractal.. the parallel lines of sentiment are tipped either positively or negatively. The bounds of a lateral are horizontal (take into consideration all degapping required. Thus as the futrue comes into the Present the latteral "walks out of any trend. Since the trend has either doninant or non dominant movement, in the lateral case the movement is from the left towards the right. The lateral always hits the RTL.
Thanks,since the laterals non domnant it always hits RTL,that`s clear. One moment,please.You always says that the parallelogram is the only possible geometric figure in the market.I can only see it as an effect.Can you please explain the cause,explicitly?I`d be greatly appreciated! Thanks again!
By nature left to right moves are non dominant. Dominant moves are the opposite. There re many many discussions of market behavior and most are incorrect. I do not participate in threads that have screwed up logic of ways of trading. An example is a thing called "The Combine" and it is a contest that has a very flawed context. Often people challenge others to do the contest to "prove" something the challenger wants to find out. Actually, some people see it as a gateway to employment in the financial industry. It could be since the finacnial industry does not make money through trading prowess. Lets look at your view expressed last. You mention effect and probably you also deal with cause. The market is a very solid structure. A process goes on in the structure. The process yields results. This is what a system is composed of: structure, process and results. In a nutshell, the whole system is a complete finite composition that is built from the smallest component into a whole. As the market moves forward, it can be considered to be a complete system, BUT it is also true that over time the behavior has to fit into a properly concieved complete system. The system is a "cause" and the behavior is an "effect". Please consider two themes in ET.. One is arbitrary and not a system. What I espouse happens to be a system. The up/down construct cannot handle market sentiment. The left/right construct fits into the system of operation of the market. Below you get to see how this incompatibility caused strife in the minds of the non system users. Trends operate in triads: dominant to non dominant to dominant. A market cycle is composed of two opposite trends. The up/down erroneous construct just uses pairs of opposites. To understand how a market cycle is constructed, a person has to be able to deal with the period in which trends overlap. A trend ends on a dominant move (M3). Then the next trend begins on a dominant move (M1). Move three is from point 3 to the FTT of the trend. FTT stands for Failure To Traverse (a right to left failure). In the independent variable, this is an increasing volume period where volume goes from a ttough to a peak. the new trend begins at this peak and goes to a trough and then to a peak. The trough occurs when the overlap of trends ends. It is called the BreakOut of the prior RTL. Move two is a retrace and in the independent variable goes from a peak to a trough. Move two is called a retrace and the Move one is called a "reversal". Both begin in the same manner, BUT the reversal continues as a single move going forward to a peak in the independent variable. as all of this is examined it becomes clearer just what the underlying is. It is market volatility. Trading cycles can be considered to be constant volatility cycles. The sawtooth wave is often a descriptor. Recently, a mistatement was made about the relative performance of longs and shorts. They actually work in the opposite money making characteristic than was presented. No matter, there are many myths pronounced in ET. For a long I use shorthand B2B 2R 2B to symbolize the three moves. A short is R2R 2B 2R Two parallelograms overlap to make a complete trading cycle. Each has an overlap beginning at the FTT and ending at the BO of the prior RTL. All move one's go peak to trough to peak; all other moves have a one to one correspondence of price points and volume extremes. The actuality and requirement is only achieved with parallelograms that overlap. In science and philosophy, this creates the key added benefit that exists. In markets, the elements that form the system of operation have an intrinsic Order Of Events as an effect. Look at these two columns (columns are not capable in ET; I edited to an lower case vertical list followed by an upper case list) that depict the market cycle: up ...............DOM down.........NON DOM up................DOM down.........DOM up.................NON DOM down..........DOM From this you can see how drawing lines to depict S and R does not work. BUT drawing RTL and LTL's does work. An RTL and its LTL give a place within which the FTT does occur. Parallel lines afford the ability to introduce constant trend volatility (the constant separation of the lines). Just as in chemistry, the Periodic Table shows the orderliness of the constituents. So do the lookup tables of the SCT show the orderliness of the market cycle. Both are finite and both are depicted as RDBMS's.
Can you reveal the difference on how a person reads the Market,from right to left or up/down orientation?