Spydertrader's Jack Hershey Futures Trading Journal

Aurum · Jan 5, 2007

Quote from Spydertrader:

I define a BO as price breaking through the right side trend line, and remaining outside the channel for at least one bar.

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Spyder's definition of a breakout. In the picture above, it's where the price crosses the RTL of the long channel.

Spydertrader · Jan 5, 2007

Quote from EstebanUno:

Spyder, wasn't the Green Up Channel broken very significantly by 10:05?
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Yes, and price promptly returned to that same channel later on in the day (30 minutes later). If price 'respects' these older trend lines, I leave them in place. For additional commentary on this subject, please review my answer to the same question in Journal II.

- Spydertrader

Spydertrader · Jan 5, 2007

Quote from C99:

I understand how an FTT makes a logical point one, but does a point one have to be an FTT? If we get a bar that extends fully to the LTL or even expands the channel and then prices reverse, can that be a valid point 1, or should the new RTL be drawn from the following bar that failed to traverse?
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Point One's do not have to be on an FTT. They may occur anywhere on a chart.

Quote from C99:

At this resolution, should I be looking at multi-bar volume trends, or intrabar pace changes? TIA.
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Both.

- Spydertrader

Spydertrader · Jan 5, 2007

Quote from dougcs:

My question is when I draw the new channel, do I use the FTT I drew, knowing it is a bar or two late, or should I draw the new point one from the actual FTT?
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My first response would be to draw the trendlines off the FTT, but I want to make sure I understand your question correctly. Can you post an example of what you mean (a chart)?

- Spydertrader

Ezzy · Jan 5, 2007

Quote from mikeytrader:

This may be of use to someone. I use 2 versions of the 5 min chart. First one is exactly as Spyder describes and shows in all his excellent annotated charts. Sometimes though I find myself missing the forest - all I see is trees i.e. zoomed in excessively with lots of channels/tapes.

By having a second cleaner version of the chart to refer to as well, I get to see a better overall picture of the day. On the forest chart you are concerned with a better quality FTT vs every FTT when it comes to a physical trade, your projected channel lines allow you to end up seeing more potent FTTs with improved clarity and nailing them in a relaxed mode.

The forest view shows the wider channels and they tend to stick until the next potent FTT which will result in a new channel.

To be clear here, this is only an aid if you find over channeling is blurring the vision. There will be more FTT trades on the table - this is merely an easy way to see a subset of the available superset.
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Your chart shows an important consideration. The day usually will have 4 major trends, your chart happens to have 5, bonus . Keeping in mind the day can have several variations, usually it will have some form of an "M" or "W". That may be helpful when drawing charts in real time and seeing the big picture.

Someone also asked recently about the four levels of channels. Look at and annotate the Quarter - a weekly chart, then the daily, 30min and 5 min. 60min and 15min for the last two levels if the market is slow. That should help with the layers.

Regards - EZ

mephistoII · Jan 5, 2007

Quote from Aurum:

Spyder's definition of a breakout. In the picture above, it's where the price crosses the RTL of the long channel.
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Thanks again, Aurum. Common sense was screaming at me that intersecting channel lines would surely not play into defining a BO, but both " BO pointers" sure seemed to depict that.

I shall leave no stone unturned - heheh. Duh!

Have a good one ...

Bearbelly · Jan 5, 2007

There are a lot of things about trading that I am still in doubt about but one thing I have finally resolved for certain is the question of volume. I have read many many posts on here debating whether volume is significant or not. There is no longer any doubt in my mind whatsoever that if you are not monitoring volume you are seriously missing the boat.

Ezzy · Jan 5, 2007

Quote from makosgu:

This is a months down the line type of thing... Snip. . . I have snapshot below of my solution that partially fixes the indicator you posted. As usual, I had to write new code to generate the following real time stream as captured below.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1060940>

This context is at Bid/Ask Pair resolution. Snip. . . But as the syllabus dictates, these are for later...

Regards,
MAK
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MAK,
I know this is not the time to go into this in detail, but I have a quick question. Is this chart a graphical representation of the Bbid/Bask (mostly the ask here) getting eaten up over time as it sits a bid/ask pair (the DOM bar)?

Thanks - EZ

nkhoi · Jan 5, 2007

I have a pile of print out of Q&A between DKM and Jack about gaussian. I printed it out because it looked interesting but I was unable to understand any of the Qs or As. Yesterday I read them again and I found out they were written in English, aha!

Spydertrader · Jan 5, 2007

Quote from nkhoi:

I have a pile of print out of Q&A between DKM and Jack about gaussian. I printed it out because it looked interesting but I was unable to understand any of the Qs or As. Yesterday I read them again and I found out they were written in English, aha!
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I think I recall reading those exchanges posted to USENET back in the day. Sometimes, all ya' need is time to allow the message to sink in - or a good Hershey to English Dictionary.

- Spydertrader