Towards the end of the equities journal II, Aurum posted a doc for doing a PRV drill. Start at the bottom of the sheet and track the PRV through the bar. You get to see the surging and retreating of PRV. It's a good drill to go through and you can visually see what MAK was referring too. As well as the scenarios that TUMS posted. - EZ http://www.elitetrader.com/vb/showthread.php?s=&postid=1294283&highlight=PRV#post1294283
Check page 48 of the Channels for BW pdf. Somewhere I read that the ES levels were originally set by eyeballing the chart, and MAK's speadsheet coincidentally confirmed them. For example in equities, instead of using a formula for DU, FRV and Peaking volume, you could eyeball the chart and put rays on it instead. So you would look at the chart and see at or above what volume levels the trends were operating at, what levels there were no trends, etc. Hope that helps. - EZ
First you take the trade (because it looks like FTT). Then you find out it's a flaw (based on PRV) so you know the trend will continue (but you don't know when yet). As soon as you find out which kind of flaw it is you can trade accordingly. For example a HVS is traded different then a hitch or dip where the trend resumes relatively quickly compared to HVS in wich case you can decide to reverse immediately. PRV can tell you but why do you even care? If you think it is not possible to know this before the end of bar then do wait for the end of bar and take action then. (exit or reverse if you took the trade when it still looked like FTT). Why trying to determine if it's a flaw intrabar if you think this is not possible. Just do what you think IS possible. Doing things of which you are not sure if they are possible is simply guessing. Am I completely missing your point here? regards, Ivo
Every cloud has a silver lining. This little family squabble has been very informative for me. Many times I do not understand what Spyder is trying to say the first time, sometimes even the second or third time but eventually he states things in a way that I can understand so these exchanges are good.
You've given me so many different sets of things to do at different times that I truly am confused as to what it is I'm supposed to be doing with what data at what times. Let's get something straight: you are willing to share but you certainly aren't teaching. Handing out information how you want when you want is NOT teaching or caring. I misunderstood your intent at the very beginning. Instead of accepting that your teaching technique/style may be causing bigger challenges than they curb, you just blame the student. Your philosophy of letting the student figure things out is great to start, but after awhile, for those of us not good at Rubik's cubes, we just get more and more frustrated and negative progress is often the result. Recall this whole thing started when you denied that you told me "you can only know it's a flaw on the bar after the flaw". You did tell me this. It's burried in a recorded 2 hour telephone conversation and in my notes. I wrote down EXACTLY, WORD FOR WORD what you told me. Within seconds after your post, a TUcson group member PM'd me with the date of the post you said something that to most of us meant the same thing. Your first tack was to blame me for putting words in your mouth. It is the COMMUNICATOR'S responsiblity for good and accruate communication. You haven't been doing this, period. And, How am I jumping ahead?
It helps immensely. It assists the student in seeing the big picture. It assists the student in understanding how the pieces fit together. It assists the student not wandering off course. It provides confidence. And more. I have instructed in the fields of sports car racing, salesmanship, various academic subjects, and more. I know of what I speak. One of the tricks of the trade that I've used since I was in school was to take the text book, and READ IT FROM THE BACK TO FRONT. I found that I wasn't the only one to do this. All of the very best students did this. Why? To know what comes next each step of the way and to get a different vantage point. You're constatnly suggesting I take a new vantage point. Every time I do that you shoot me down. I'm a child lost out in the woods. I'm alone. I had someone helping me who is gone. I like this person, because, well, I just like him. Always will.
Spyder is teaching, but definitely not spoon feeding. I can see his teaching style: He gave a map, shown us the direction, told us the landmarks along the way... then we have to make the journey. For those who missed a turn along the way. You can wag a short cut to the main trek, if you know how. Or, backtrack to where you went astray, and start from there again. Staying cool is the first order when you got lost.
ok i just got caught up with the thread for the past few days and i had to comment on the above post. bb, i think you need to take a step back. ok this is what i see in real time (only using prv, not dom, s/s, etc.). step 1: you have a potential FTT so you take action (lets say it's long). step 2: i'm long and i'm just watching PRV. PRV is constantly changing, but in my mind i already know what i need to see (vol levels ST already mentioned before) for a FTT and a potential flaw. scenario 1: vol closed at 80% of previous bar, so at this point i'm thinking vol looks good for a FTT and now what do i need to "see" next for cont or change. scenario 2: vol closed at 40% of previous bar, so now i'm thinking the last bar could potentially be a flaw. now i watch the next bar like a hawk to see what i need to confirm a flaw. most likely i will see increasing PRV red vol and price heading lower. if i do i exit (more exp you might reverse), now if price starts to head higher i will just hold. like you said in 1 of your post some of these low volume bars will result in FTT's. It's tough to say (using just PRV) - ok i see 40% PRV vol of previous bar i def. have a flaw, let me reverse. you will have to wait to "see" what the next bar does to see if its a ftt or a flaw. just sit back and let the mkt tell you what you have. don't guess. Spydertrader is giving us the tools that we need to trade the ES, but we have to use some judgement.
Donât lost sight of why we study this method. To make money of course, grant that it's not in the huge amount as one would like to see but plus P/L is always better than minus P/L, anyway you look at it.
I have some experience in training too, people who want to fly before the instructor knows they are ready, usually crash. If it takes a year to learn these tools and process, so be it. It will be worth it in the end. Reading a book from back to front reminds me of the term bass-akwards, let the people who are already there tell you how to get there. They know better than anyone what is important and what is not.