Spydertrader's Jack Hershey Futures Trading Journal

Discussion in 'Journals' started by Spydertrader, Dec 30, 2006.

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  1. Seems like CCC..?
     
    #891     Feb 5, 2007
  2. Just noticed your post..thx..

    "Market Place lines"..?

    I have low vol marked by white line on both..is this what you refer to..?

    No offence taken..bring it on so to speak..please highlight anything I do wrong..

    Yes appologies for the VolFootprint stuff...other studies going on too..

    Thx

    FilterTip
     
    #892     Feb 5, 2007
  3. Imagine looking at one derivative instrument traded on 2 exchanges A & B. The underlying cash for the instrument is traded on a third exchange C. On exchange A, the minimum trading increment is set by the exchange to be 10 cents. On exchange B, the minimum trading increment is $1.00. On exchange C, the minimum trading increment is 1 cent.

    If one is watching the quotes on exchanges A,B & C it will appear that B leads A. For example C is going lower by a penny at a time until it is nearly 10 cents lower then suddenly B goes lower as well. A does not move. B goes lower by its increment of 10 cents per trade till its nearly 10 increments lower. Suddenly A goes lower 1 increment. It appears that B leads A.

    In this example the cash index is changing by 1 cent higher or lower as it trades. Exchange A is limited to a 1 dollar minimum move. Exchange B is limited to a ten cent move. As the cash changes B will move first because it more closely follows the cash than does A.

    In the real world of comparing YM to ES consider the following:
    BASE price ES 1451
    BASE price YM 12685

    1 tenth of 1 percent move= .001

    ES = 1451 X .001 = 1.45
    YM 12681 X .001 = 12.68

    Minimum increments
    ES = .25
    YM = 1

    Number of increments in a 1 tenth of 1 percent move

    ES = 1.45/ .25 = about 6 increments
    YM = 12.68/1 = about 12 increments

    So as you can see, the YM entails nearly twice as many increments in an identical percentage move as the ES. It is "easier" for the YM to move first because it tracks the underlying cash more closely than the ES tracks its underlying cash.
    Conclusion: Seeing an index move ahead of another index is not "proof" that 1 leads another, but may indicate that 1 tracks its underlying cash more closely and its quote reporting is more continuous as opposed to discrete.
    Granularity.
     
    #893     Feb 5, 2007
  4. nkhoi

    nkhoi

    market pace lines, see the pencil
     
    #894     Feb 5, 2007
  5. Highlights the "ambiguity " of the larger channel for me...can't say I'm displeased with the smaller red and green traverses so far ,between the blue lines though, although it took a while to see those too..
    it's only been this last green that's not looked quite right. although it still read the FTT and FBO's correctly, or at least to say the "NOW" action has kept things on the "right" side so far..


    Best

    FilterTip
     
    #895     Feb 5, 2007
  6. nkhoi..thx..

    No I can't see the "pencil." ?


    You procrast and me each have diferent larger channels so far but have all stayed right side of market..interesting ..

    Ps...Oh... the pencil..:eek:
    yes I see it ..thx.

    got used to seeing vol thresholds on Footprint..
    but I'm about to disconnect that and put it away so I can't mess with it..:)
     
    #896     Feb 5, 2007
  7. Maybe the VolFootprint and the "other stuff" you monitor have distracted you from where you need to be looking. After all, others seem to be 'seeing' what you fail to grasp and they don't use all that 'other stuff.' :D

    Of course, your mileage may vary.

    - Spydertrader
     
    #897     Feb 5, 2007
  8. ETL That is pretty much the way I was thinking too. Smaller timeframe appears to lead the larger timeframe but I now believe there are other factors involved. For one lets assume smart money hits ES and YM at the same time. It takes much less volume to move YM than it does ES so the smart money there causes YM to move before ES catches up.
     
    #898     Feb 5, 2007
  9. I annotated yours with how mine looks. I threw in the blue since some annotate that way too. I do mine because of dominants. To each his own as long as you keep to the right. Beyonce says to the left to the left. We say, to the right to the right...


    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1350582>

    MAK
     
    #899     Feb 5, 2007
  10. See Red, Blue and Green Lines in Volume Pane of this chart.

    - Spydertrader
     
    #900     Feb 5, 2007
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