Nikkei Gaussians Another example of Gaussians telling you what is going on. Note the Swiss ball that formed underneath to support the price action.* The first FTT circled on the long in the steep channel was inevitable and you learn to be patient - the prior bars all showed characteristics of strong continuation, then we saw peak volume, continuation on decreasing volume, then the FTT on increased volume. This is all in the steep channel. So now you are looking for R2R which comes on cue at BO of the steep channel. BUT you have still not had the FTT of the shallower Long channel - you can therefore anticipate a second top as this is tested again - forming the second FTT shown (the bar was green until the FTT then change occurred intrabar). Then there is R2R and free fall, peak volume occurs again as the shallow long TL is broken (which confirms your channels did have great significance to a lot of traders). It's funny how it works out this way even in Japan. Have a great w/e all and relax, it's all coming together and there is no rush. (*The Swiss Ball is just a little joke.)
thank you for breaking this down Spyder... I should have used the word <b>transaction costs</b> plus commission costs where the transaction cost would = the B/A Spread... instead of the word 'slippage'... If a trader can find ways (Lease a Seat), etc... to cut his commission costs down his Channel Trading will have a higher profit per trade outcome with no extra effort on his part... and when trading other contracts besides the ES using the Channel method he should take care to watch the BA spread on those contracts as that is one of his important base costs and therefore will effect his equity curve... thanks... cj...
Here's mine for the day. Usually I do well with the Gaussians, but here I had a lot of trouble with them, which means I had trouble with the overall context. I felt comfortable with some of the pt 3 to pt 3 moves, though. It's a more relaxed way of entering than going for the FTTs. It looks like I'm identifying FBOs too soon, since a couple turned into BOs. But if you wait, you're often too late, so I'm not sure how to improve my practice here.
Candles tell me way more than bar charts. In fact, in most cases reversal candles appear at FTT and give me better indications as to what kind of volume we have. I have been using candles for a long time and they tell me quite a bit at a glance. I wil not recommend them to others as that point has already been made, but for me the candle tells me more how the bar is forming as the color and body change over the 5-minute period. Since I see them naturally they do not distract me or take away from the chart. Remember it depends on the individual and their comfort level. Candles just give me more visual info than bars do.
This is My EUR/USD forex chart.....seems that Price Range can be used instead of Volume in forex markets...:
It makes the annotated charts easier to see with bars but Spyder uses candles on his stock charts so he must not have anything against them.
Well you cannot be against a type of chart for other people to use, you could just favor it over the others for your OWN trading .
The saying 'You can't teach an old dog new tricks' comes to mind everytime I bug you about something you are doing 'not in order' to the Jack/Spyder "prescribed" SCT doctrine is concerned In his book, The creative process in the individual, Howard Troward writes "order is heaven's first law'. Meaning that getting things into it's proper order is the great secret to everything, including the unbelievable or unimaginable yet. I now Jack and Spyder understand this very well as I am sure there is a good reason for bars for this fractal, but as you point out, success at the individual level is what matters either way. Let's keep rolling !
What I meant, is that by the time a reversal candle actually forms it's too late according to where we are going.