Spydertrader's Jack Hershey Futures Trading Journal

YM chart

 

I had a couple of questions with my attached ES chart. First, as you can probably tell by the volume levels, I had not rolled over to the new quarter. Is there a general rule to follow on when to rollover?

The second question I have is regarding some of my channels - specifically the dark purple, white and olive channels. I noticed that these channels where absent from Spyder's channels. I wanted to get clarification whether this was due to resolution level (trees instead of forest) or because I incorrectly drew wider channels that do not have significance.

Any other comments, of course, are also welcome.

Thanks,
-A

 

Missed point 1 of the down channel and waited for point 3.

Noted the wall and FTT on the retrace. This was a very late entry due to the PRV volume. I was not convinced that the volume would support the resumption of the dominant trend. When volume came in on the next bar entered short.

The 1:45 bar was on extremely low volume flagged as flaw and held. Exited when red volume continued to decline during the 1:50 bar.

Video: http://et.pr0crast.com/bi9_12172007_trade2_edit.avi

 

see second answer
http://www.elitetrader.com/vb/showthread.php?s=&postid=1713615#post1713615



http://www.mypivots.com/articles/articles.aspx?artnum=10
there are 9 pages to the article.
click on Next Page >> to read more detail.

 

Spyder,

I have the 10:35 bar creating a lateral formation that lasted until 11:35. Incorrect?

 

I had them in place until Price formed its first Point Three Channel early in the morning. I then removed the carryover channels in order to avoid adding confusion with the chart labeling.

- Spydertrader

 

Trade going long on point 3 entry with BO of down channel

Exited when YM was showing change.

Video: http://et.pr0crast.com/bi9_12172007_trade3_edit.avi

 

Ok, gotcha, thanks.

 

From a 'purist' point of view, Price on the 10:45 AM bar broke the High of the 10:35 AM bar. Therefore, one would not annotate a Lateral Formation here. However, Price (at 10:45 AM) also closed back inside the boundary formed by the 10:35 AM Bar. As such, one could 'see' this price action as lateral movement. As a result, we have lateral movement but not a lateral formation. For the purposes of differentiating continuation or change, however, the difference probably represents one of semantics. One could choose to hold in both situations.

- Spydertrader

 

Good point. Lowest volume levels of the day.