1. What ever happened to rockets, I thought new traders were supposed to start off with them before moving on to more advanced SCT type trading? 2. Considering this is already the most popular thread on ET, I suspect a lot of folks are going to be trading this method so I suspect there will be a lot more 'flaws' to it. Can we expect more CCCs and HVSs? Interesting thread btw Spyder, thanks.
Lordy, lordy, lol. Can we clear up the distinction between a tape and a channel. I assume a tape is a series of bars of the same length so to get a channel we need a bo of the rtl of the tape which creates a point 3 and then we have a channel?
Hope you do not mind my jumping into this thread. A big thank you for this thread and the others you have done in the past. I have been following and reading everything for the last 2+ months and learned a lot. I am still struggling with the ftt to ftt, BO, and FBO concept. I have drawn a lot of lines but haven't mastered this yet. The recent posts on this thread has helped me a lot. Some of the fog is lifting as I now understand BO and FBO a little better. For an ftt to go to another ftt, I assume we would have to use a different channel then the one the ftt occurred in, is that correct? Anyway, a big thanks and HAPPY NEW YEAR.
I have attempted to use a different paradigm with respect to how learning to trade the ES (under the methodology discussed by Jack) should unfold. Under this new paradigm, a trader begins as far away from SCT as possible. While some might consider this a simple change in vocabulary, I prefer to view the paradigm shift as focusing on the individual components (or tool set). In other words, one may choose to never progress beyond trading FTT's, and still, find a great deal of profit. However, eventually (first by accident and then by design) a trader will make their way further down the path to SCT. Gravity alone will drive the transition. An increase in the number of traders choosing to trade these methods would actually decrease the numbers of CCC type flaws - as CCC results from sustained abnormally low volume levels. In addition, considering the FTT's work on any market, one would simply need to pick another market (as many have already done) to avoid the potential "madding crowd" you foresee. Good trading to you. - Spydertrader
A tape is a channel which uses the first two bars to form the trend lines instead of three bars needed in a "point three" channel. In other words, the skinny lines on my charts. - Spydertrader
Correct. You would need another channel in the opposite direction of the channel where the first FTT occurred. - Spydertrader
I was just trying to be responsive to you. Spyder is suggesting the route and his advice is, as they say, priceless. People can choose. For me, were I you, I would just not get anxious about keeping current and following the suggestions of Spyder. Spyder (Todd) is a very special person. It is not hard to explain why what he says has the stongest basis you will ever see imparted by a person. He is a person who is devoted to the well being and success of others and he has been through what he is speaking about. Simply stated, you are not going to see anyone else connect with others in the manner that he does and with the concern that he has for giving a person the "fix" that is called for. You are a positive contributing person as well. Communication here is only so effective. Stick with this and proceed. It may be that someone lives near you (see profile). I was at a brunch this am of 16 people who are part of Tucson IBD. One of the members hosted. It did not matter who was next to whom, there was some exchanging going on about something or other. We broke up at 2:30 after a 10:30 beginning. It is hard to say to you at this point, but all of these people a while back were just starting out. Now, most of them are in the category of passing it forward. As you work through the information that Spyder put up front, always be sure to ask about anything that comes up. My main goal was to help you see that annotating price and volume would put you, immediately, in a place of being connected to the markets. We all are so glad that you are getting involved and everything will fall in place fairly rapidly for you. EDIT: Spyder posted while I was formulating this response. In particular he explained the "paradigm" for learning under way here as compared to the Rocket>>iceberg>> sct older route. Both are low risk strategies and ,personally, I find that the FTT route has as the drug industry would say, less side effects. The emphasis on things rolling along and then the FTT coming into the picture is, again, priceless for "no side effects" in considering continually the main event. As MAK says this is a tag team event here and someone will pop in and help with whatever comes up.
I am sorry, but I have couple of questions. If I understand this concept correctly (maybe not). You enter when FTT occurs. SO you enter when the trend line is broken? And last but not least, when do you exit? After the FTT occurs again....so meaning you change your position with a trend? Thanks and Happy New Year.
Entry would be at the time you identified the FTT, which is before the "right side" (trend line) of the channel is broken. The breaking of the trend line is what we are calling the "break out". If a break out occurs, you continue to hold your position. If a break out doesn't occurr, then this is a "failure to break out". An FBO means to exit for beginners. In order to identify an FTT you can't just use trendlines, you MUST be using channels.