http://www.invest-store.com/cgi-bin/elitetrader-bin/moreinfo.cgi?item=2243 http://www.invest-store.com/cgi-bin/elitetrader-bin/moreinfo.cgi?division=books&page=title&item=2106
Trader28: Interesting thread to read along. I also try and trade off of something as simple as I can make it and use MACD and moving averages. Thanks for sharing. I had a question unrelated to this thread so could you PM me? I do not want to sidetrack the discussion.
Telegraphing. This chart shows how you have leading indicators of price. Here you know at least 10 miutes before you hit the sell price and you know the sell price in advance. You also know it is a reverse into a short. This last post is a segway to the SCT trading elsewhere. This is a YM chart for the current front contract. Snarly is still trading after the roll over on the 2006 contract or he isn't trading and doesn't know about rollovers. This is a beginner annotation to just get some lines on a chart. As suggested I drew in the channel that is done on the 60 minute. It is a wide channel and it's left channel line is, of course, the current R. It is labelled on the chart as a limiting value, known in advance that price can approach and hit. I drew some channel of medium value. This is as good as a beginner can do. It is just a warm up for SCT trading. The heliotrope vertical dashes show the bars where the channel points 1, 2, and 3 originate. FTT's are shown as well and they become either points 1 or 3. FTT's begin channel overlap and point1 is where you trade to make money. Beginners are just doing low risk trades so they just take what comes along. The Simple Profitable Method is a beginner type trading plan. For SCT trading bar 4 breakout is about the only entry of the day and it is the first entry because the offset of the cash and index is set by then. See indexarb.com for the premarket established offset that will prevail a bar 4. Today the trade was telegraphed about 10 minutes ahead of time by Stoch 5,2,3 crossing the 50% up. See the annotation that would be made in advance. This is the use of stoch 5,2,3 to give a leading indication of a trade by the fast line crossing the 50%. The traverse in green is a channel that starts the day. You can see the volume rays (3 of them) that tell you the market pace (how fast you will be making money.) You are told the first trade makes money fast. As the volume goes to the highest level you are told that the channel volatility will increae at bar 6. This event tells you the sell price of the trade and that it will be two bars later. See the intersection of the green left channel line and the 60 minute left channel line. So, in advance and and at specific price you see the future trade (a reversal for SCT an exit for all ET people.) This is a market trade in all cases. As a note, the people who lose all the time in chop are setting limit orders on bets they make and they are way down in the que for getting excuted after the limit order becomes a late market order and price hs slipped away from the limit value. Tough for them. For SCT traders you can see these treades they place as the "wall" that is not passed on the DOM stalactites. There is a post in this thread that narrates this failing chop strategy. At bar 8 a new point one appears and a short side of the market is the place to have to knock off two rapid trades and beginners sidelinefor this. The volume tells beginners to get to the sidelines until the afternoon BO. SCT traders trade all traverses of the channels shown. They only sideline when the tick spread gets too thin to make nets. This index is a leading index of ES so it is not a good index to trade. monitor and annotate this index and trade the ES as a lagging index. This gives you time to always have a correct reversal after you get past beginner. There are two journals for getting this type of trading understood. Do the stock template first and get to expert there. Then begin to learn to trade indexes. If you look at his chart for quite a while some things will become available to you as understandings. Do not expect much from this chart because of your past and present orientation. It is tough to move away from gambling to optimizing making money. Stopping the betting orientation is very difficult an it is mental work to learn to substitute making money for betting.
What happened to the thread? I got up to page 70 and turned to see how everything was working out today, yet everything has changed entirely. Jack, is this weighted channel methodology a variation on Spytrader's Jack Hersheys Method? It seems to be more complicated in a sense, and most people will just give up after reading it.
Jack, I spent the morning playing with "omnitraders" drawing tools. Good News!!! I can draw a channel, trendlines, etc. Now I don't have to throw my computer and software in the river. Thank God for small favors. snarlyjack
Started reading Jack's post then saw this: "This last post is a segway to the SCT trading elsewhere." Segway ? I had to go and look this word up, and I found this: "segway noun (trademark) a self-balancing personal transportation device with two wheels; can operate in any level pedestrian environment WordNet® 2.1, © 2005 Princeton University" Now I may be a bit thick, but what is going on here ? Are you just choosing words from the dictionary at random ? More confused than ever.. Mo