Combine what you have gleaned from Jack's posts with these posts. See if that doesn't clear things up a bit for you. Post One Post Two Post Three Good Trading to you. - Spydertrader
Mozart wrote his first sonata at the age of 4 and composed his first opera at the age of 12... thats a genius... the rest of us are just trying to sound smart and hoping nobody works out we are making the big words up
Did you read that article about Traderbot and its many clones. They have computers that catch any price descrepencies and recently moved closer to the exchanges in order to save a few thousandths of a second execution time. Scalpers are competing with these people. Im moving back to larger time frames and going for larger moves so I can relax a bit.
When I say scalping BB I dont mean the diff between bid and ask... in whacky Jacky terms I would call it accelerated quantum trading with macro tendencies
Spidertrader, I read your posts and totality agree with you. Now I am kinda a "nubee" here so be easy with me... When I use the Stochastic and macd indicators they make sence to me. When I draw in the channels (just started playing around with them), I can see the paths. In other words, your on a train...when the train changes direction, you jump on/off. The trend change could be short, intermediate or long (who knows). It's not for us to know but for us to react to the change in trend. So...what us "nubees" need is a good old fashioned "How to Draw Channel's Correctly Class"!!! I can make some educated guess's on how to do it, but at best it would end up as a guess on my part. Do you know of anyone qualified to train us "nubees" the secrets of "Channels"?... Thanks snarlyjack
Jack describes the channel drawing process, step by step (complete with easy to understand .gif files), in DbPhoenix's Determining Trend Thread. If you still have difficulty, you might try the Channels for Building Wealth v2.2.pdf. Good Trading to you. - Spydertrader
Jack or Spydertrader, Let's talk about volume for a second. I have noticed that Jack watches volume very closely. In my system there are: (1). Volume bars, at the bottom of the screen that turn green or red depending if the price bars are going up or down. They change every bar, red/green, red/green, red/green. It would be tough to time the trades using my bars. Or... different indicators and systems. (2). Accumulation-distribution crossover. (3). On Balance Volume crossover. (4). Volume Price trend crossover. I've tried my volume systems in the past and they don't really move like the macd or stoch. When the macd and stoch turn up/down the market will turn up or down pretty quickly. Within seconds...But my volume can be above the zero line and prices will go all over the place and the volume will stay steady. Could a person time the market (ym) using volume indicators and volume bars? I know it's a weird question, but thanks... snarlyjack
I've read over a fraction of the hundreds of pages of Jack's writings and he does talk about volume being a leading indicator that can somehow be used to time entry into a market. As I understand his writings Jack states that increasing volume suggests that an existing trend will continue (up or down) and a low or decreasing volume indicates an ending trend. What I struggle with are that (1) volume itself doesn't often seem to "trend" for more than a bar or two and (2) how much of a volume change is significant enough to make an entry decision on??