Alrighty then. Before I jump headlong into a detailed explanation, I want to remind everyone about the dangers of moving along the trading continuum (beginner, intermediate, expert) before the appropriate time. Fail to follow this advice, and you do so at your own peril. One simply must build a strong foundation developed from many hours of chart review before one can expect to profit at more advanced levels of trading. I continue to recommend thorough reviews of Journals One and Two, not out of ego, but rather, out of how the repetitious chart review builds the mind to 'see' and then anticipate what comes next. Having said all that, the decision to move forward remains a matter of personal evaluation. Some traders move along quicker than others, while some need additional time to internalize the process. Absolutely no one should feel 'behind the curve' or pressure to move ahead. Each individual progresses at their own pace. Remember, the market cares not if you arrive prepared or if you don't. O.K. then. Now that we have that out of the way, here we go. MACD: When we look at the MACD we want to see divergence (the lines separating) in the direction of our trade. In the example of GROW, we entered short, and therefore, want to see the lines pointed downward and widening further apart. Sometimes, we want to see the lines cross (a few bars later MACD Histogram goes from red to green) creating a possible signal for entry or reversal. Stochastics: Again we want to see the lines pointed in the direction of our trade along with divergence. Ideally, we want to see 'inter-twining' take place above the 80 line (for longs) and below the 20 line (for shorts). In Jack's 'High Noon' clarification, he discusses how 'inter-twining' Stochastics (14,1,3) lines provides a 'hold' signal (on a higher fractal). Money Flow Index (MFI): The MFI isn't a part of the Hershey Methodology. I use it as a measure of 'extremism' in the marketplace. By that, I mean, MFI measures extreme movement, but not necessarily direction. High levels of MFI may indicate a 'top' has formed. A high MFI could also mean you have latched onto a rocket. In other words, you could win big or lose big. I do not recommend trading based off of MFI levels without a great deal of study. Concerns mentioned: Keep in mind that I monitored the ES throughout the day, so I wasn't constantly checking the charts. As a result, I wasn't looking when price went against me. However, someone actively trading on the five minute fractal could have 'slalomed' back and forth from short to long and back again by following price (within channels), volume levels, as well as, MACD and Stochastics levels. Second, one should never look at a Profit / Loss statement when trading. You should remain focused on execution. If you execute successfully, the dollars take care of themselves. Anticipation vs. Prediction: Although the difference between anticipation and prediction seem slight, significant differences between the two words do exist. We do not 'predict' where price plans to head by the end of the day simply by looking at indicator levels in the early morning. We 'anticipate' price movement based on the input of data sets (price location within a channel, volume, MACD and Stochastics and most importantly - experience). By reviewing the charts every day, your mind begins to learn to recognize both price and volume patterns, as well as, sequences of indicator levels which often foretell price direction. These sequences occur on every timeframe - on every fractal. You already experience this when you look for 'Bruno R' set ups and monitor for 'Rockets' blasting off from the launch pad. What I describe is no different - I simply remove the directional bias. If you still experience difficulty, take a step back (move to a higher fractal) and try to look at the 'big picture' in an attempt to slow down the decision-making process. With Qcharts, one can draw in the trendlines on a higher fractal and have them remain in place when moving to lower fractals. Lastly, All indicators generate their levels based on the fractal monitored. I do not create indicators on higher (or lower) fractals for use elsewhere. If you find yourself unable to determine direction based on the data input currently provided, no problem. Take a step back. Relax, and simply watch for a while. Remember the lessons you learn from the monitoring. One does not learn how to trade by reading books (or even Journals). One can learn the methods needed from the books (and Journals), but to learn to trade, requires experience. The necessary experience comes from reviewing the charts. I hope you find the above information helpful. - Spydertrader
Anyone else having trouble with the WL site? I've been trying to run chartscrips and scans since last night and now this morning it's still updating only until 9/8/06. Is this just something that happens once in a while or am I perhaps doing something wrong? Thanks
Ever since I travelled to Tucson (June Trip) and looked at my first futures charts (ES & YM), I realized I had the ability to trade Jack's Futures Methods in the same fashion I traded The Equities Methods. Peak Volume, 'Bruno R' Set Ups, Rockets appear on the ES charts just as they do in Equities - only much faster and with greater frequency. Within seconds of watching a chart projected onto a screen, I started calling profitable trades from the back of the room. In an effort to gain consistency, I have studied the ES each day since. I'll provide you more than a hint. I posted an ES chart in the "Rawket Rohlout" thread (linked earlier above). The same Indicators (MACD Histogram, Stochastics) used in Equities, I use for the ES. In addition, I use the five minute timeframe for the ES (Two minute chart for the YM). Occasionally, The Wealth-Lab.com web site fails to update their data by Market Open the next day. I recall a similar situation occurring last year. - Spydertrader
Careful with CBEY. When it signaled, more than half of its volume was in a single 40,000 share trade at 9:51. I passed on the trade, but it's up from 23.98x24.00 to 24.43! Ah well. Congrats to those that took the trade, and I hope it stays strong for you.
I saw the block trade foible, but thought it was worth the risk in a simulated account... . I got in at $24.24. We shall see....
I have a question about the stop offset method. The trade I just made with CBEY was @ 24.24. According to Wealth Lab, my stop offset is 0.95. As I understand it, this 0.95 needs to be subtracted from the most recent low, which was 22.10. this would make the stop offset price 21.15, or 12.7% from my entry. Is this right? Or do I continue to use the 2% or below yesterday's close as initial stops? Cheers, Adrian
I downloaded the videos from the new website and just want to make sure I'm not missing anything. When I downloaded I got the meetup video from the meeting in Tucson in July (i think) that was previously posted in about 20 small size downloads, and then I also got the meeting that Todd spoke at. Are these the two videos that are on the new site or are there more that I may have missed. Thanks, I just want to make sure I have everything.