For anyone following the narration on page 172 (forum default posts per page), around 11-17-08, attached is a YM chart for that period as sometimes it's hard to grab a chart on older contracts.
Geez, can't you guys give it a rest already? Nobody here gives a flying fuck about Mr jack hershey, his method or anyone else's for that matter. Fuck, find a new false guru to denigrate, there must be plenty around, and stop polluting the best forum here (chit chat) with your anti Hershey shit. Maybe he's a great guy, maybe he had a reasonable approach to markets, maybe not, just SHUT THE FUCK UP ALREADY about it.
collect some new stuff; part I Quote from JRL: [Hi Jack, Interesting comments, I agree that deliberate practice is the way to mastery. Thank you for this comment. This is a major item for the learning trader to recognize. The subject of learning is the markets what they do and how they work. Taking the market's offer in a timely manner is the result of knowing what and how market's work. This is indisputable and the core of being a successful trader. A few questions, if you don't mind: 1) "Purposeful drills over a few weeks" - would love to hear you define this further. What drills? All of these things are defined, put in a logical order and illustrated for six levels of skills and knowledge. Illustration 5 in "Dr Hu" shows the arrangemnt of the "substantive", the "routine" and the "trading" for the first three levels. In that illustration there is a reference to 11 specific drills. An overview called the "ten pager" has some of its pages used as basic references for the applications of the PEP (paradigm) to its applications PVT, SCT and SSR. (see clean page 2 and 4, in particular). The 10 pager is very comprehensive. Purposeful drills are designed to fill the mind with an organized stratification of the whole encyclopic aspects of the fully rational market which has no anomalies nor noise. It is like building a musical scale octave by octave and filling in each note of the chromatic scale. Also found is all of music theory which is oriented to a time base and the relationship of the frequencies of the notes of the scale. Music representations are universally readable as we all know. So are engineering drawings, architectural drawings, and mathematical presentations. So is organic and inorganic chemistry as is most of the organization in the sciences and languages of the world. Campbell also pointed out in his books how all cultural stories and traditions are from a common template. So are the markets. One pattern emerges from the logic of deductive reasoning. Placing in the mind an organized and complete resource requires that it be done in cooperation with how the mind works. The astounding examples of regular people doing very well in any intellectual pursuit is common knowledge to us all. More common are the examples of wasted minds and people who are Destitute regarding rational thinking. These people simply have no rational inference since their decision making destroyed that possibility permanently. Jerry030 has pointed out how that works within others and him recently. A drill is a purposeful repeated effort that is done with short term memory. At some point, briefly, the long term memory locations begin to build sufficient strings of neurons the reach a critcal mass in terms of numbers to provide a complete and renewable long term memory. Three primary areas are involved. the same ones for reading and for driving a car. Therefore, if you can read or drive, you can trade, if you go through the learning process. My primary use of ET is to measure other's failure to learn what and how the market works. Classic examples for me are Trader28, thunderdog and hypostomus; the reasons may not be obvious. Being correct is very important. Being "right" is just a prop for not knowing. Three operators of the mind dictate what and how to learn; they are: O1 spatial; O2 shape; and O3 Movement. Most people are good at watching TV as a consequence. If you can understand what is going on in TV, you can trade. Clean page 2 shows the cases for adjacent bars. Money is made through price movement. You drill to place the boundaries around the cases using O1, O2, and O3. Trading platforms can now do seven of the nine cases thanks to two years plus of working with plaform suppliers. We regard this as a major achievement and two priority items remain not including their starting over to completely overhaul their approach. The seven items handled exclude the two that are the money making items. So the manual drilling continues on bounding translation bars: higher highs and higher lows and its complement: lower lows and lower highs. By using thin lines on adjacent bars, a person learns to see the cases and he forms a scale of the nine cases in his mind. these simple universal combinations of adjacent bars show that finite mathematics is the foundation of logical trading. The two money making cases dictate the measure of the hypothesis set. They are binary vectors. Once the mind begins tobuild using binary vectors and the fintie cases in two sub sets, a person can trade successfully. No one posting in this thrad has that capability as you see by their personal statements. None of the authors mentioned or the subjects of those authors have this orientation and/or knowledge. What everyone does have is the traditions of the CW. Another thing most people have is frustration. They know they are incoherent. They know they have no mental recourse supplied to them in a timely manner. Pogo explained it to them. Considering my collegual relations with the Jung Institute and the Dept of Psychiatry at Michigan, I recognized the importance of purposeful learning to avoid incoherence and its by products that are stress related. The Bohr Effect and Lizard Syndrome being the most commonly man in the street recognizable destabilizers. Oxygen deprivation and freezing up are quite common for traders who do not know what is going on. They have no inference for the sensory input that is reaching thier minds. no inference means no perception. No perception means fear, anxiety and anger. 3700 parallel neuron chains assure long term memory. "Use it of lose it" applies. Glial paths provide new replacements to anyone of any age. The fire poles of the brain. Two opposite trending annotated boundaries of adjacent spatial elements provide points 1, 2, and 3 of the next larger, slower Fractal. Nesting is like sentences form paragraphs forming sections forming chapters in written language. By working with three nested fractals in a drill of annotating, the single pattern becomes evident to the worker. As the pattern (a shape) leaps out of the picture, it becomes part of something traders can have. Red neck continually explains this absence. I am glad he does. What the something is is a partnership with the market. A trader can make a partnership agreement with the market. Several things are involved. By doing the drills knowing the cases of adjacent bars, the trader goes through the first step in establishing a partnership. In legal and psychiatric terms it is called "acceptance". In CW this is not part of the big picture. "Control" is substituted and no partnership is possible. the trader "accepts" what the market is "telling". This happens in personal relationships. People in supreme relationships "accept" the others "tells". As we see in ET some people do not have "significant others" so they fuck chicks. They control instead of partner and "accept". (See Section A Social Support in âMy (Our) Heart Ownerâs Guidebookâ 18 NOV08, pages 28 through 31 (including 14 book references). The consequence of forming the partnership and having tells and acceptance is that cycle after cycle allows "TRUST" to appear in the relationship. The lingo of "hey I'm macho and what happens happens" is that absence of a partnership and the absence of TRUST. Drills engender trust and the single pattern emerges. I like the filter that says "this guy is full of shit". It eliminates a lot of questions from people who cannot form partnerships in business. The pattern is B2B 2R 2B for long and R2R 2B 2R for short. Two adjacent translating bars exhibit the pattern. Test yourself by seeing which bar point 2 is on and why. Since volume leads price it is a good idea to annotate it on at least three fractals as well. most platforms do not have global variables to work with so volume is usually anchored to a horizontal line for keeping the CW traditions alive. Do a work around on a pane above volume. 2) "Posting a fully annotated P, V chart every day". I know what P & V stand for, but what exactly do you mean by this? Physically drawing out an equity/index movement? I segway'ed to this Q in the answer above. On your annotated chart with P and V in their own panes, you see the pattern on three levels, its overlap periods and the ways in which the pattern pace picks up or slows down. As a trade writes out his partnership agreement, these charts play a large role. the annotated charts have no noise nor anomalies and they provide all of the information for answering th three questions that need answering each moment in time. the answers assure that the trader always "knows that he knows" which is the job of his partner the market to supply to him. Thanks in advance. [/B][/QUOTE]
part II ... Since there are leading lagging relationships among markets and their information, as the trader progresses he adds drills to address these issues. One issue is the 7 of 9 cases where the market is not in translation on a bar by bar basis. The cyclic nature of the markets extrapolates to the order of events in cycles. Hence the three questions and the use of the binary vectors in a deductive HS and PM. By introducing drill after drill, a foundation appears then upon the foundation all the building blocks are laid. As you say this is effective and efficient. Most people will not do this and a lot more cannot do it. All of the rational reasoning associated with this exclusion relates to past character building decisions and specifically thier consequences. The pragmatic examples of these limitations are well and detailed in expressions of those who blow off this approach. almost anyone can go back and note the milestones that preclude his following a CPM to trading expertise. I have used ET to collect the entire litany of this successive diversion people enforce upon themselves as a consequence of the decisions they make. Why Toni Turner can't use volume is an interesting chain of events. Read Covel's âTrend Followingâ to see how those he writes about blew it all off. Especially read the front end where people establish a standard of 20% a year for stock trading. People are at choice up to a certain point. This post is a good one for figuring out which side of the line in the sand a person is on.
a brief synopsis; Quote from jack hershey: We use a hierarchy of nested fractals. Within each is a P, V pattern for annotating trends. The pattern is symmetric whether long or short in sentiment. As unusual as it may sound, the moves for P are three and the corresponding moves for volume are four. Volume leads price. Here is the hierarchy: name, line weight on V, Line weight on P Channels, thick traverses, medium tapes, thin, thick BBT, dotted, medium sub, dashed, thin sub sub, dot dash The patterns are B2B 2R 2B for long R2R 2B 2R for short. Trends overlap. The B2B stands for B overlap from point 1 to RTL (non dominant declining volume); 2 is BO of RTL; and B is dominant increasing volume move to LTL. 2R is the non dominant volume move to the RTL point 3. At this point the trend is drawn as a parallelogram using pts 1 and 3 for RTL and pt for LTL. The last dominant volume move is to the end of the pattern, FTT also point 1 of next pattern. FTT stands for a geometric occurrence. Price Fails To Traverse to the LTL on a relatively high volume. What most traders seem to fail to reason through is how and why the pattern is the only possible pattern of P, V movement. It is done with logic in a Scientific Method setting where deductive reasoning is used for a Hypothesis Set and its Parametric Measure. The SM uses a null hypothesis approach. The uniqueness of the HS and PM lies in the market dictated units of measure: binary vectors. The market dictates this requirement. It is difficult to reason through this requirement. Occasionally the pattern has to deal with nuances of reasoning. VE (volatility Expansion of the container is one of them. If a person cane recognize that volatility can vary over time, then he is able to handle its increase and its decrease. We use a logic solution for each. The decrease appears as yellow containers. The increase appears as a new wider parallel LTL (only on the LTL side). Both of these matters add degrees of freedom to the system called the Pool Extraction Paradigm. Trading for us is just a means of extracting capital to solve other problems. Problem solving has a financial component and eliminating it as a restriction is self serving. There are many depictions of the pattern that are available. Constructing it from a word description is possible once a person is oriented to the appropriate market measures. In addition to the VE LTL annotation, when possible the RTL is accelerated within the non stationary window. the three terms in my quote were: BBT meaning Building Blocks for Tapes VE meaning container Volatility Expansion (which is a money velocity increase) X B meaning translation Black. In trading two cases of adjacent bars advance trends: higher high and higher lows is translation long; lower highs and lower lows is translation short. ere are 7 other cases and they go in yellow boxes. These cases change as time passes within the yellow bow or in a series of yellow boxes, then translation begins again. Basically PEP and it applications answer three questions at all times in the Present. Having these answers from a Routine called MADA (which is in a deductive contrast to the inductive OODA) allows the trader to have emotional feelings of comfort, support and confidence at all times. In a word, he "knows that he knows". MADA stands for Monitor, Analysis, Decision making, and Action. Most often the Action is HOLD. We do not use entry/exit orientation as is evident from the three questions; which are: 1. Where is the market in the cycle (pattern)? 2. What is next in the pattern? and 3. How fast is the pattern changing? As you see this is in stark contrast To the CW gambling orientation explained by OODA (See John Boyd). There are many people here who have determined that the above is not for them (4 out of 5 reject it immediately). There are others who feel more strongly. They feel people should be protected from this approach. In some ways I agree with them. If a person is looking for a short cut for making money, then this is not useful. If a person is unable to reason using logic, then this is not for them. If a person is not able to build his mind to a differentiated state, then this is not for him. The people who feel the strongest, negatively speaking, assassinate my character daily with their creations; ET allows this to go unmoderated as you will see from the fall out of this post. I've only been in this orientation for 53 years so far. Four generations of people have used this approach successfully. Many people have proven that this approach does not work for them. This does not mean that they have proven the approach is unworkable. there are also many people who have adapted part of this approach to their approaches to improve them. There are many many approaches to trading. There are a lot of descriptive measures common to most systems. When these measures are applied to our approach, the values attained are not in the usual range of values with one major exception. If the measure is the market's actual offer for any given period, then with skill and knowledge and purposeful experience, on any fractal, the performance effectiveness and efficiency approaches this market based limit. because there is little overlap with PEP and its applications with the CW, it is sometimes a challenge for people who apply the CW standards to PEP to obtain whatever they thought they were going to get as a result. "unbelievable" and "astonishing" are two of the scientific descriptors these people use. They are correct in how they get those results. If you are a visual person, make a list of several nested fractal orders of events from the pattern description. If you use channels to BBT's as the nest you will have a list of about 135 lines generated on an Excel. Doing it by hand a few times allows you mind to get differentiated rapidly. Then you mind supply what you need as you sense charts forming the pattern. The list is how the market flows and can be used as a cheat sheet when you are trading. An alternative is to draw the geometric nesting for a complete cycle. I email each day's activity with chart and/or some focused discussion and always the carry over for the next day's open (including news for the next day).
shoot. i never knew 2 simple actions (buy low, sell high) could draw out so much controversy and complexity. you can even switch the orders the two events occur. what could be simpler?
Quote from jack hershey: I continualy mentor others. We begin with stocks and add commodities soon after. It makes the pattern more relevant. The self selecting goes as illustrated. the tasks in learning are processes where drills are done. The person making 6K on 27k over six weeks did Initial Analysis of many stocks. He learned how they work in terms of volume and price on a pattern. He traded 7, 6, 5, 4 on the scoring 19 times and made profits 18 times and washed once. He has two things understood: timing and how to pick stocks. He used the Universe the team built from their IAS sheets. They determined the Weekly Batting order and used it to enter and exit stocks according to a sheet that included the volume signal for entry and exit.
Quote from jack hershey: Here is the core element of the paradigm as a graphic. The three moves of the pattern involve volume leading price. A stock is held through the three moves for the period of days shown in the Days column of the Universe. the entry is on A and it is held for D and A. A is accumulation and D is distribution. Scoring is shown on the bottom and the cycle has 8 portiions. The pattern is repeated twice. As a selected stock proceeds the scores of 3, 2, 1 and 0 occur in that order of events. The trader observes. When the time arrives to enter is determined by volume. The same is true for the time of the exit. The prior chart is hierogliphics according to dave goodboy. It is gibberish according to Covel Pring says: I don't understand the qwestion. 4 out of 5 reject the pattern. [/B][/QUOTE] here is a graphic of the EQ/IQ process by which people either succeed or fail. selfselecting poeple who are mentored or who work purposefully usually do not fail. failure is common in learning to trade. Et has abundant examples. If you are headed for failure this chart will serve as a diagnostic for you.
Quote from jack hershey: To keep a contemporary feel here. Use the Illustration as follows: In the circle you see the starting point is to listen. The partnership link to the market is to the right. Listening can be the SS314 batting order he posted. The tell is also the specific market information about the stocks on the list. As you go around the circle over and over., the tells are followed by acceptance. Acceptance is a term that is related to relationships. some readers may have relationships where you can "accept" what is told to you by someone else. ET is in contrast to that. Dave Goodboy does not have the ability to "accept" what we say to him about our approach. He cannot even remember people who have explained it to him face to face. clearstation is a common site for people to track portfolios on an EOD basis. We use tiles and the tiles are 30 minute so they show the pattern. The pattern gives the timing ans does the leading volume on the "list" one pager signal coding. If a person is going to trade a market, there is the consideration of the market "tells" and the trader's ability to "accept". If this is not in the partner ship the "risk" printed in the circle is there and the "container" (the circle) can have NO TRUST in it. Trust is absent in the "partnership". This mostly eliminates the partnership. Users of the batting order are in a group and the group does the MADA. This makes a Universe appear on an Excel. The batting order comes from the Universe and it is deployed to trade the individul's capital in the group. The list shown accounts for 10 of the 19 trades in cluding the first trade which was a wash. I do not know or recognize SS314. That is becasue I am unfamiliar with the email lists in detail; it is just my job to send them to the first tier of the tires. So by using MADA and having a partnership , the repetition allows trust to come into the relationship. That is trusted is two things: the market data and how the market works. In this thread there are two groups of people who have posted which group they are in The stark contrast comes from these two considerations: the market data and how the market works. One class of participants still has to deal with the market data and how the market works. As steps in this directiion occur, there is a chance that the growth of these people will allow them to see what the market offers. Usually in the potential trader's career things go the other way and they get to be like Traderzones and his measures with lilited scles. Or T28 who does not know how to relate indicatorsto markets; or like T666 who cheats himself in his backtesting.
Quote from jack hershey: ... By combining the psychological nature of A and D with the technical nature of P and V and understanding the periodic aspect of the markets, we thought others would appreciate and grasp and apply to their trading philosophy. ... Those who use PVT do what is specified for doing PVT: 1. Sorting 2. qualifying by criteria. 3. maintaining a Universe 4. making hot lists 5. doing trading by timing the markets using tiles of charts and MADA. 6. iterative refinement going through many doublings of effectiveness and efficiency. The final objective is 100 cycles a year @ a nominal 10% using up to 12 streams of capital where the shares are limited to 100,000 per stream. For years there has been documentation available for a trade at this capacity. The exit required 31 partial fills and some capital was left on the table for this nominal 30 dollar stock. The third party review of the FEDEX'ed information resulted in the broker reducing trading commission by 10% for anyone who wished to use the method in accounts at his firm. There is documentation on all of this and it came from a meeting process. Anyone can get and use the documentation for self study. Another alternative is to use the ET record that was developed and where a Q and A process augmented the example of using the method in real time for over a year. Learning to trade is a process. It is not done by "taking" this and that and putting a mess together and expecting any results. The heart and core of good trading is having a differentiated mind that provides all the inference needed to have "perception" as a consequence of being able to make use of what is seen. ... Having a differentiated mind for trading stocks, automaticaly translates for getting inot the ball park for trading SCT using the ES or a similar commodity as the instrument. The common elements of differentiation are: 1. purposeful learning through a process of drills. 2. long term memory which provides available inference for what is seen. 3. finite sets of available information in the mind for each phase of MADA. 4. a thouogh understanding of the order of events in market operation (the pattern, nested fractals, etc.) 5. A thorough binary vector orientation 6. a full coherence orientation which manifests as support, comfort and confidence. The following are eliminated as part of trading: 1. probability 2. predicting 3. protection techniques required to compensate for 1 and 2 above. 4. elimination of having to use an OODA feedback system. 5. the emotional incoherence depicted by anxiety, fear and anger.