Attached, please find today's annotated ES Chart. Icons added on request. Many of these trade set ups were discussed in the ET Chatroom today. See Chat Log for varification. - Spydertrader
Spyder, I was reviewing today's chat logs and you mentioned GMXR as an example of using volume to confirm a FTT. 11/24 is an inside day on rather light volume. Then, on 11/27 is a down bar on increasing volume. This is a great example of how I get screwed up with volume analysis. I see the down bar on increasing volume over the previous and understand this to suggest (according to Jokari window principle) that the market should be going down further. Which bars were you looking at (and how) to confirm the situation as a FTT. As usual, thanks so much for your ongoing help.
Hi Bundle, Just a quick comment - I had the same thoughts on the 24th as you do, until I remembered that: 1. It was the day following a Holiday 2. It was only a half day 3. It was a Friday After thinking on those things, I pretty much threw it out as being valid for volume purposes. Of course, I could be completely wrong in my assessment... HTH
Would anyone be able to provide me with a list of stocks traded this year following this system to the letter that you feel best represent the perfect setup? My background is in data mining and data analysis of very large datasets (terabytes). I will have some free time this weekend and I believe I can fairly easily pattern the intraday behaviour of any stock considered a perfect setup and a match of all of the criteria detailed here. I will only be looking at the intraday setup as I believe the initial universe, followed by the various watch lists can only be done by manual visual inspection. I believe 10 - 12 stocks should do the trick. In return I will post my findings here.
The stocks are changing based on rank and fundamentals. If you go back a year in the Journal and work through it from there, you'll find all the stocks traded as Spy and others have posted their universe lists.
I follow what you are saying and per my earlier posts I read the entire first journal as well as up to April on this journal. In addition, I took notes all along. What I'm looking for are stocks that people here feel best represented the setup. I would imagine the suggestions would vary slightly and that each person can think of at least one stock and the trade date. Or, are you saying that every single stock traded here every day best represents the perfect setup? I can't imagine that is the case, but if so then disregard my post. I want to study the 5 min and 30 min chart on the date that a stock was considered tradeable. I have various studies and systems I've developed utilizing my machine learning background and I'd like to see how my studies line up with this system. This helps me to understand what I am learning. I don't need every stock traded, just a handful for modeling purposes. Knowing the 1 or 2 or 5 or 10 that best exemplified the setup would save me a lot of time.
For a moment, forget we had that half day of trading which created the short black volume bar. Imagine, if you will, a much larger volume bar - slightly higher than Monday's Volume Bar (and most likely also red instead of black). You would then see decreasing volume (red) over the four days with decreasing price. In fact, if it makes it easier, eliminate that trading day entirely. Can you now see the decreasing volume on GMXR? We know when volume begins to decrease, we can expect the trend to change. What we don't know is if it will change the next day or not. We can only anticipate the FTT causing a trend reversal. The volume trend (in this case, decreasing) confirms the FTT. Price opening up with increasing volume provides the additional confirmation. Jack has written many posts about the Gaussian Formations of Volume. These posts might aid your understanding further. As Aurum pointed out, its the Post-Holiday Half Day that has mucked up the works for you here. Hope that helped. - Spydertrader
Type any symbol from the Final Universe into The Hershey Chartscript and look for the thin blue lines in the price pane. Each blue line represents a 20% (or more) price run. These would also represent the 'best' opportunity. Also, you might check the end of Journal One. I listed all trades from Journal One attached to the second to last post. - Spydertrader
Exactly what I was looking for. I believe this will do the trick, so we can close this request. I'll let everyone know what I find out.