Hello Spyder, I have a few questions. 1. When using str/sq to enter you keep on monitoring str/sq during that same bar for signals in the opposite direction until the bar is over. Are we talking here about YM bars or ES bars? I suppose it's YM as str/sq involves YM and not ES. Just want to make sure. 2. Do you give any importance to str/sq during the opening? I was having values of +10 or more and no contra signals during this period of action today. As we all know we had a significant run up after this so I do suppose it is an indication. The reason I am asking this is that someone mentioned futures + cash have to synchronize etc and that str/sq values during the opening are not relialble. But I do not recall you mentioning this so I want to know. Regards, Ivo
I wait until the close of the ES bar. STR / SQU doesn't work until market sync takes place - usually around Bar Four. Until then, I don't even look at STR / SQU except to possibly find what looks like a better offset from what I had the previous day. It is because STR / SQU fails to work as an effective tool before market sync and after 4:00 PM that Jack only trades the ES during those times. (9:45 AM - 4:00 PM) - Spydertrader
Thanks. I'll try anything if it improves the results I know that I need to be able to identify each pt 3 sooner, without getting bogged down in limbs and leaves.
I apologize for missing you post the first time through. For price to move higher in an up channel, it must do so on Increasing Black Volume. For Price to head lower in a down channel, it must do so on increasing Red Volume. Increasing Volume refers to Volume as Price traverses the channel. In other words, (in an up channel) from the most recent Low (Price) to the most recent High (Price), Volume always increases as Price traverses the up channel from low to high - always. Similarly (in a down channel), from the most recent High (Price) to the most recent Low (Price), Volume always increases as Price traverses the down channel from High to Low - always. Both of the above examples represent dominant traverses - those where Price moves in the same direction of the channel. Non-dominant traverses occur in the opposite direction (and opposite color) of the dominant direction of the Price Channel. In other words, (in an up channel), from the most recent high down to the most recent low, Volume always decreases (and is red) as Price traverses back down to the right trend line. Similarly, (in a down channel), from the most recent Low back to the most recent High, Volume always decreases (and is black) as Price traverses back to the right trend line. Price can leave a Price Channel in two ways. When Volume continues to increase as Price approaches the left trend line, increasing levels of Dominant Volume (in the same color) cause Price to break out of the left trend line creating Volatility expansions - a widening of the Price Channel. As Price approaches a right trend, increasing levels of levels of Non-dominant Volume (in the same color) causes Price to Break Out (BO) of the trend - subsequently ending the previous trend. We measure increasing or decreasing Volume across the entire Price Channel when Price remains within the trend channel itself (including when Price creates Volatility Expansions thereby widening the channel). We measure increasing or decreasing Volume bar to bar when price exits the trend channel on a Break Out of the RTL (Right Trend Line). I hope the above provides the clarification you need. If not, please let me know. - Spydertrader
I continue to have a hard time understanding ftt's. I know what they are and I see them. I don't trade them usually but would still like some clarification. Last time I asked I was told to read the begining of the journal, which I did for hours and found many things helpful. I have no trouble with the channels and gaussians and being able to trade this method but could not trade ftt to ftt successful at this time. A few bars in question. 9:50 is see as a dip but at the time thought it was an ftt. 9:55 looks like the dip bar to me until the next bar was finished. Am I supposed to see the difference on the bar or wait for the next bar to confirm. If I wait til the next bar it would make trading the ftts much riskier at this resolution. 15:50 bar I thought was an ftt. Sometimes people note ftt's when vol. increases on the bar and sometime when vol decreases. I'd appreciate it if someone could provide some clarification. Thanks
Just so I can make sure we are all on the same page, you have: read through the entire Futures Journal, Reviewed the Building Channels Document, Got 'up to speed quickly' by clicking the link to Journal II to review how to spot an FTT (2 months of posts there), watched Bundlemaker's Video and Reviewed Posts I, II and III from the Journal beginning posts which also describe FTT's all in under two months? O.K. You've got the channels and Gaussians down well, and can trade profitably entering on a Point Three and exiting on a Right Trend Line Break (This is The Forest Level), but find it difficult to 'see' and FTT forming in real time? If so, this is when you should continue to trade on the Forest Level while monitoring the market to observe the Price and Volume changes which occur at an FTT. You'll make mistakes at first - confusing flaws for FTT's. Over time, you'll learn how to spot the differences and find yourself ahead of the class. When flaws begin, they look very much like an FTT. Hint: monitoring Volume provides a clue to whether you observe a flaw or see in FTT in the making. Dips occur over three bars, 9:45, 9:50 and 9:55. It is the 9:50 bar which looks like an FTT as it begins, but later we see that it was not an FTT. The 9:55 bar simple has us finishing the Dip formation and then continuing onward. Eventually, the differences between what is and what is not an FTT become clearer. Most flaws won't show their true colors until the next bar after the bar you thought was an FTT, so you won't know until later that you incorrectly viewed a particular bar as an FTT. I have discussed this before with respect to making errors (and I recommend you review once again) and how, "First by accident, and then by design" you'll see that errors are not to be avoided. Focus on quickly recognizing your errors, and then, immediately fixing your errors provides the road to success. On my chart, the 15:50 Bar shows a Volatility Expansion. This bar could not be an FTT. Perhaps, your charts showed you something different. Sometimes FTT's develop during high volume and sometimes they develop during periods of low volume. The Journals (and background material links) contain a wealth of information. Quickly reading over the posts often results in a less than complete understanding of the basic concepts. I encourage you to review areas where you may have overlooked the important fundamentals discussed. I hope you find the above information helpful. - Spydertrader
Thanks for the reply. I have read all these things, most of it more than once. I will review the links you mentioned again. Sometimes I'm a little slow at comprehending, thus I have to read things several times. You are correct on the 15:50 bar. Ensign time stamps there bars with the bar end time. I forgot to adjust that one when I wrote the previous post. I should have said the 15:45 bar. After the next bar I knew what it was. I recognize my short comings and have been trying to stay on a resolution level that matches my understanding of signals at this time. This has helped. I am still trying to forget what I knew and stay in a trade until I see change. I tend to take profits way too soon. It is like the exits don't match the resolution of the entries so at this time I miss a lot of the move. It is fixable
Pr0Crast has a review which you might also find helpful. Yes. I understand Ensign can be a real pain in the ass. Remember, this whole box of tools allows you to not go for entry / exit type thinking. Continuation and Change mark the signals for this methodology. On a Forest Level, Point Three's and Breaks of Right Trend lines require action on the part of a trader. The entire rest of the time, you sit on your hands. Feel free to monitor to train your brain how to spot FTT's but take no action until you arrive at another action Point (maybe a Point Three in the opposite direction, or a break of an RTL). It's important for you to internalize these fundamentals before attempting to profit. In other words, learn to crawl before attempting to walk, run or fly. - Spydertrader
1st chart post ! It is a great start, but don't stop here. I learned so much just by looking at my charts. Somehow I can see my mistakes AFTER I posted the charts. Talk about embarrassing myself. p.s. labeling the pt1, 2, 3 can help you to visualize where you came from, and anticipate where you are going.