Whoops... missed this one. <img src=http://elitetrader.com/vb/attachment.php?s=&postid=2121001 width=640>
Adjusted the log format. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2121037> Now Volume has separate columns for Pace and EC (Elevation change). Pace is denoted by a letter, and left empty when pace is unchanged. Elevation change is marked with an arrowhead, and colour-coded according to the existing colour scheme of the volume bars. Price also has two columns now; the first denotes Dominance or Non-Dominance, and the second is for tapes and formations. With tapes, an arrow will indicate the direction and angle of the tape. This column will be colour-coded according to price bar colouration, thereby supplying the necessary vector information. I believe that replacing the letters L(ong) and S(hort) with the simple colour scheme will improve efficiency and clarity. I'll post daily photos of my logs. On Wednesdays and Fridays, I'll also post my realtime charts. Is the above acceptable, or would you suggest amendments?
Summary of my learning points from this weekend so far: 11th October 1) Non-dominance represents the default state until the market indicates dominance. 2) Logging is a record of CRITICAL THINKING; record PV in VECTOR terms 3) Debrief ON the log 4) Indicate whether price dom/non-dom 5) When drawing a new channel, guess position for point 3 in advance 6) Spike bar = hammer/morning star/hanging man 12th October 1) Flaws only develop in Dominant traverses 2) Use debriefing to reinforce lessons learnt 3) Look for WRB (wide-range bars) to break through SMA 4) Note bar close in relation to itâs H/L 5) IBGS â sign for change 6) OB â sign for change? 9) INTRA-bar pace -a. Acceleration = continuation -b. Deceleration = change 7) When context changes, WMCN changes, so BE AWARE OF CONTEXT 8) Increasing V within a pennant --> change 9) V drop-off at open suggests M/W day? 10) 40-60% V threshold for flaw 11) HVS --> decreasing levels of oscillating volume 12) Looking for P3 up, but falling price and IRV --> change in market sentiment -a. P2 becomes P1 of new down channel 13) V doesnât always rise right ON P3 itself
My SCT timeline... Started reading the material â 19th September 2008 1st hindsight annotation â 23rd September 2008 1st realtime annotation â 30th September 2008 1st realtime logging â 3rd October 2008 1st realtime papertrade â 8th October 2008 1st Real tradeâ¦
here are my comments on logging. As you said you are new to trading. It is best to start out with doing the PVT until you are competent in trading stocks. For logging the ES we will take a look at what a log is and how it changes as skills are acquired. The image below starts the process of getting acquainted with what markets are and how they work. I will begin at the beginning. Look at the illustration just below and read the comments and soak up what is on the table.
The beginning: The P,V relation is what is used to make money. Here is a log that is not formatted as yet but it has some places to put things. So fill in the volume and price key boxes, 1 and 2, for kmowing what the market is doing in terms of the PV relation. I am asking for a thing to be put on the left column ( blue box 1)that measures the volume vector that is mentioned in the PV relation. For Example, the I/D notation could be used. I stands for increasing and D stands for decreasing. What would the symbols be that could become the vocabulary for the I/D column?
As rows are filled in the volume column tells a story. The story is the Gaussian story that is related to the PV relation. The purpose of the log is to make notations of the routine, MADA. I have suggested that a trader can be a hiker on the Gaussian mountains where a trail is being followed. The I/D column under the volume part of the M of MADA could be used as a hiking description using symbols that relate to the PV relation. As a person new to making money in the markets, it is EXTREMELY IMPORTANT build your mind with places to be able to know that you know what is going on. The log is NOT a lab sheet for doing the scientific method in order to be able to build a graph from data points and form the data points be able to derive a relationship form the variables shown on the graph. We have the relationship and we have an unfolding graph or chart as it is called. We are trying to fill in a column with information that is USEFUL at all times for making money. In boot camp it was okay to do as you wished to make a log. The first week of bootcamp lets you know that you do not know what is going on even though the markets are throwing money at you so strongly that a parent with 50 contracts rolling could get 250,000 dollars made for her son's college education by trading a couple of hours on a few days last week. Today we are makng the connection between the log and making money and the log and the PV relationship. We are starting from scratch all over again. We NEED symbols to put in a log with a pencil. If we put in just I and D, then we get a typical lab sheet. We are interested in making money. What entry goes in the volume column when a profit segment is being taken? Make that a symbol. What symbol(s) go in the volume column when the market is making money for you? Make that/those a symbol(s). On the trail, as you hike what other happenings occur? Make all of those symbols. Now you have one column done and you have the vocabulary for the columns.
Under Price we need to get the first column of Price (See box 2)done. It relates to the PV relation precisely and specifically. Price is used to make money. We need to know that we know what price is doing. We need a label for the column that relates directly to the PV relationship. We need a vector set of vocabulary symbols since the PV relationship is stated in terms of price vectors. As we saw we came up with many volume vocabulary symbols. It is not going to be any different for Price. In the PV relationship the expressions are in terms of WHAT? Trends. Yes TRENDS. Skip the coloring of columns; that is bullsh*t because we have our hand filled with a pencil (think of the log as a crossword puzzle: do NOT work in ink) and the pencil is moving across the row rapidly and automatically to complete a MADA routine like taking a national sample over the telephone (the time interval must be short to have usable information within a degree of accuracy). Boxes 1 and 2 give use the PV relationship data so we can pair the data with an Analysis subset data answer where a one to one relationship ALWAYS EXISTS and it is ALWAYS the same subset. Lets label the box 2 with a T which stands for TREND. Do we have names for trends. You bet. What fractal are we talking about? This is the beginner fractal and it uses the channel as the fractal. Boot camp is difficult. It may become noticable that money can be made using channels. Channels are always there and they can be named. Think of the two most common channel trend names. Use a symbol for the trend names. Try L and S as a starter. With columns 1 and 2 (names by the box numbers first used and made a part hereof). With two official columns we can move on to the Analysis results of the PV relationship. Almost. We first have to consider timing as it relates to Price. We did it for volume and got some additional symbols. Put these symbols on your vocabulary list for Price. Reminder: what fractal do these symbols refer to for beginners?
Let's review. We have two columns under Monitoring for the channel fractal of beginner trading. they relate to the PV relationship. How does the MODE of the A of MADA relate to the PV relationship? directly is the science and math term. There is a direct relationship. We are building our minds. by having an assortment of volume and an assortment of price symbols we get a finite number of combinations of the subsets of the V and P columns. In A there is an answer for each combination and that answer is UNVARYING. THERE IS ZERO PROBABILITY AT ANY TIME WITH RESPECT TO THE PAIRINGS OF SUBSETS FROM M AND THE ELEMENTS FROM A. A one to one corespondence exists. What happens to a person who uses this algorithm to trade? He trades all the time with certainty. Does this person have sufficient information to know that he knows all of the time? He does once his mind has learned to log the two columns of the M of monitoring. What else does he do to reinforce this learning? He annotates. So why didn't the first logs show the PV realtionship? The PV relationship wasn't known to the mind of the person who made the log. What else did that person skip doing? He did not think critically. That is he insisted on makiong up a log that was a data sheet of the chart he was looking at instead of a data sheet of the PV relationship. My comments continually fall on deaf eyes. The sensory input of my words merge with a person's inference so their perception is 90% what they already believe. Think about this. You will enter the market as it opens more or less. you WILL BE ON THE RIGHT SIDE OF THE MARKET. Also YOU are entering the market and staying in the market (a requirement for making money). With the two columns and the MODE column of A of MADA, you as a beginner have sufficient information to BE on the right side and Be in the market. There will be very few changes during the day of the channels of the channel fractal of the market. The market is always right and you place on rows the state of the PV relationship as you fill in the rows. How many rows do you need to do this? Not many. What is the overlap symbol in your Price vocabulary? So now we have found out what trading the markets really is. It is rading the markets. Why then do we do logs in boot camp? Answer: to learn to read and develop a vocabulary. Why do we write out a log? Answer: we do not have the capability in our minds to NOT need a log. From this point on, I will add some thoughts to the basic system that has been manifested. A system is a structure which has a process gong in inside the structure and the process gives results. HERE IS THE FIRST THOUGHT ABOUT THE PRACTICALITY OF THE SYSTEM. [The system of fractals is built from the smallest (fastest) up to the slowest. Three fractals are involved. Where is this building done? It is done on the charts of P and V. Tapes become traverses and traverses become channels. It is possible from the entry near the open to know the trend of the channel. If the trend of the channel is known, we have sufficient information (in binary vector form) to trade the channel as beginners.