Spyder, i know in futures you use strech/squeeze, DOM, YM and a few others to help in seeing an FTT sooner. I was wondering if there are any other leading indicators for us to use in equities other than price, volume, and channels. Also, i have read a few times that a flaw has a different volume level than an FTT. From what i understand, a flaw tends to have lower volume than an FTT. Could you give a brief outline of what kind of VOL% levels would indicate a flaw and an FTT. I know this will be different for every stock, but i am only looking to get an idea of what levels we would be looking for.
Keep in mind that Equities trades off a daily time frame. Dropping down to a lower fractal, and applying the same techniques used on the daily time frame helps to catch 'the turns' so to speak. Gooch87 traded this way on a five minute chart before heading to work. I recommend reviewing some of his posts to 'see' how the same tools (channels, formations and gaussians) work on all time frames. Again, we trade equities on the daily - entering and exiting intraday in an effort to maximize profit. In futures, trading on the 'Forest Level' resolution (equivalent to entering on a Point Three in equities), flaws do not exist. As long as price remains within the channel, the trader takes no action. When price reaches the right trend line, only then does the market require some action on the part of the trader. FTT's and Flaws begin to appear on the 'Tree Level' Resolution in Futures. As you point out, volume plays a key role in differentiating Flaws from FTT's. In futures, a trader simply continues their 'bar to bar' analysis to the next bar - looking for the signals of continuation or change. In equities, the next bar doesn't materialize until the next day. As such, the use of 'steeper' Point Three Trend lines offers one solution to avoiding the confusion often experienced when determining which mode (continuation or change) the market currently signals. Another solution involves focusing on making the highest money velocity. As one begins to 'see' the rate of price improvement slow, one moves to another equity. Jack uses this technique to insure making the most money per unit time. Since it is not yet the appropriate time to begin a discussion of flaws (in either Journal), I do plan to link to the discussion once the time is right for concerning ourselves with 'flaw' differentiation. Until then, keep focusing on gaussians and making sure they match your channels. The Gaussians can provide a trader with the opportunity to 'see' where an FTT might occur, and avoid making decisions without looking at a complete set of data. - Spydertrader
Hi, Sydertrader, I am wondering if you still keep the following in your Final Universe? Because they lost their rank a while ago, if my tracking record is correct. FTEK HWCC RATE SIRF XING thanks, -- UriKai
I hadn't yet deleted those stocks when I posted my Final Universe last time. I have since deleted all symbols without rank. - Spydertrader