Spydertrader's Jack Hershey Equities Journal II

Attached is my chart; note the subgraph labelled, "JackGaussians" is volume.

Also, for my intraday trading on Thursday, I was using a 30 minute basis to select the top 5 candidates, but was trading on either 5 or 10 minute chart.


Doug

 

The price and volume action of ASEI described in your post provides a perfect example of the infamous Block Trade. Jack described the occurrence of such trades as resulting from overzealous and inexperienced fund managers. Jack advised avoiding these trades like one would avoid the plague. I recall several occasions in Journal One where avoiding stocks with significant numbers of block trades kept me from losing money.

Looking back further in time at a longer term chart for ASEI, I notice the current price sits very close to the most recent high (2005-12-02). Experience tells me to expect a pullback followed by a few runs toward breaching this area of resistance. If you wanted to ignore the 'Block Trade Rule' and open a long position anyhow, I would try entering on the pullback with small size. If after two or three attempts at breaching the resistance, price fails to move higher, I would consider exiting.

As always, your mileage may vary.

- Spydertrader

 

Thanks.

My inclination is to sit this one out for now but my initial impression was to jump in until I saw what happened. We'll see.

Mike

 

Thanks, Doug. Our graphs look vastly different.

Here is my WL code for these calcs. Do they somewhat match yours (ignoring the langauge differences, of course )?

Thanks and take care.

--------------------------------------

{$I 'T3'}

function Dot(series : integer) : integer;
begin
var factor : float = 100 *(390/BarInterval);

var diff : integer = MultiplySeriesValue(MomentumSeries(series, 1), factor);
var htemp : integer = OffSetSeries(series, -1);

var divide : integer = DivideSeries(diff, htemp);

Result := divide;
end;

function DotDot(series: integer) : integer;
begin
var x : float;
var tseries : integer = T3Series(series, 6, 0.7);
var htemp : integer = OffSetSeries(series, -1);

Result := SubtractSeries(tseries, htemp);
end;

var pdot : integer = Dot(#close);
var pdotdot : integer = DotDot(pdot);
var vdot : integer = Dot(#volume);
var vdotdot : integer = DotDot(vdot);

var panedot : integer = CreatePane(60, false, true);
var panedotdot : integer = CreatePane(60, false, true);

PlotSeriesLabel(pdot, panedot, #blue, #thin, 'Price 1st derivative');
PlotSeriesLabel(pdotdot, panedotdot, #blue, #thin, 'Price 2nd derivative');

var panevdotdot : integer = CreatePane(60, false, true);

PlotSeriesLabel(vdotdot, panevdotdot, #blue, #thin, 'Volume 2nd derivative');

var Bar : integer;

for Bar := 0 to Barcount - 1 do
begin

if (@pdot[Bar] > 0) then SetPaneBackgroundColor(Bar, panedot, #GreenBkg)
else SetPaneBackgroundColor(Bar, panedot, #RedBkg);

if (@pdotdot[Bar] > 0) then SetPaneBackgroundColor(Bar, panedotdot, #GreenBkg)
else SetPaneBackgroundColor(Bar, panedotdot, #RedBkg);

if (@vdotdot[Bar] > 0) then SetPaneBackgroundColor(Bar, panevdotdot, #GreenBkg)
else SetPaneBackgroundColor(Bar, panevdotdot, #RedBkg);

end;

 

No. Gooch87 is just an alias that was available at the time I signed up on this site. Gooch was already taken so I added the 87, and ...

I look forward to reading the results of your study using the short interest ratio.

 

2005-02-06, Monday - Dry Up Stocks (5)

BOOM ENG MTEX NGAS PETS

I also plan to watch GROW, LMS and TIE

- Spydertrader

 

bdolnik - you are not going to find free backfill for QT unless you happened to have an account at another firm. However, you can get a $20/Month IQFeed subscription which would take care of all your backfill needs. Not free, but still way cheaper than lots of other options. I know MB was talking about adding backfill. I will check with them about it.

 

Spytrader I have followed both your journals from start to the last post. I have truly enjoyed the entire threads and wish you continued success in your trading. I never quite got how to implement it properly and i have moved to a different trading method I hope all your trades break even at worst and gain double digit percentages.

Disqplay

 

Thank you for your kind words, and I wish you tremendous success with your trading. Should you have questions regarding the Hershey methodology, feel free to post them here.

Good Trading to you.

- Spydertrader

 

Same list here