Hi Spyder, You labled 13:15 to 13:55 as an HVS. Would you mind explaining which bar you saw start the HVS and how we entered the HVS? When an HVS is that long, I get a little confused
Sorry, just one more. Then I'll enjoy the weekend The 15:10 ES bar is labled as FTT of red channel but is this really tradeable based on the red channel? Its still 3 or so pts away from the Left Trend Line. I cannot see how one could take this trade based on the red channel FTT. However it is close to the RTL of a bigger up channel so I guess that comes into play as well. On my chart, I have the 15:10 bar slightly volitility expanding the left trend line of a channel starting from the FTT at 13:50, so it cant be an FTT of that channel. I can see how the 15:35 bar could be an FTT of that channel and that would make sense for getting long. Is there anything you saw, preceeding the 15:35 bar that would have led you to the conclusion that price would head higher?
Because I viewed the 13:50 bar is an FTT. Hitches look like this: (See Attached). <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1487747> The 13:15 bar starts out looking like an FTT. However, we know by the 13:20 bar (at the latest) that the 13:20 bar cannot be an FTT because we expected decreasing red Volume but have instead decreasing black. Since we do not have an FTT, we must have a Flaw. All that remains is for us to determine - what Kind of flaw. Again, CCC doesn't work (Too much Volume). Hitch doesn't fit (Price bars too volatile). At this point (13:25), we have Dip, Stall and HVS remaining. Decreasing Black Volume and Equivalent Price Bar Highs at 13:30 eliminates the Dip and we lose Stall the further into the HVS we go (Stalls last relatively short periods of time [one bar]) leaving us with HVS. After eliminating from consideration that which we cannot have (as time moves forward), we arrive at HVS as the only possible formation. As to how price entered the HVS, the 13:15 bar is a Volatility Expansion. price moves lower from there. Just in case you missed that coming in, the market provides you with an FTT at the end of the HVS - just for good measure. - Spydertrader
The 15:05 bar represents a Stall (See this post with respect to what we often see after a flaw.) In addition (what I had not annotated on my chart) the 15:10 bar represents an FTT of a 'Tape' (See Attached). Lastly, the 15:10 bar creates a larger Point Three Up channel (Blue on my charts). - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1487756>
spyder, how did it feel when you first realized (in futures) that you could make money virtually at will with no drawdown? (and I don't mean "when did you know that you could"? but rather, what did it feel like when that knowledge turned into actual facility in trading?) Because I'm sitting here on several days of time lapse replay charts that I've made where I randomly sit down during the day, synch up with the market PV/channels and just extract money. And I'm thinking, O...M...G... LOL! I never thought I'd "get it". Forget a light bulb turning on, it's more like a freaking lightning bolt splitting my head open.
ROFLMAO. Welcome to the other side of the hill. I recall exactly how I felt when the 'lightening bolt' hit. I let out a very loud, Holy Shit! - as I couldn't quite believe my eyes. Moments later, I let out another series of expletives as I realized how everything had been right in front of my face all along. I simply hadn't seen it. Welcome aboard, and please, do what you can to help bring others across with you. - Spydertrader
I definately intend to help in whatever way I can. drills baby. drills. drawing P/V channels both in hindsight and real time. over and over and over.
I am posting this because I know many following this thread use IB. I do not want to bash IB (I'm a happy customer for years) nor want to get the thread off track, but felt it important that users be aware that there are most definitely data problems when IB fills charts. In particular, the problem seems to occur most often during laterals and doesn't seem to happen often, but then again I'm not really sure either. I stumbled upon the problem because I'd get so frustrated sometimes because the gaussians during the lateral often had one odd bar that screwed up the whole cycle. So, in order to learn what I thought I was doing wrong I compared my chart to Spyder's, debriefing bar by bar. Low and behold, I'd find Spyder had a red bar on inc vol and my bar would be black on dec vol, for example. I use Ensign and can force a refresh with DTN and DTN matched Qcharts almost tick for tick. Not so with IB. I stress, this is not a huge problem early in the learning stages, but for me at the level of progress I have made I feel it important enough to cough up a few bucks to get the charts to be exactly right. I apologize for slightly off topic but I know some of you might be getting frustrated and it's not you.
Attaching p/l here. As you can see I am not making a living at this now, but I am humble and learning. Again all paper trades till I am confident and following everything learned.
I did some thinking about the DOM a while back and found very little on ET that answered my questions, other than a few gems from Mak and Jack. I synthesised my view of how it all hangs together in some slides which I hope others find useful. Read it in conjunction with Spyder's post above, it should help to reinforce his points. Comments welcome, especially on how to take it beyond DOM 101.