collection of illustrations from Exact Science thread; Exact science pic 1. exact science pic 2 Quote from jack hershey: These two exact science pics 1 and 2 are the basis if making money. The red movement from roigt to left is a short trend [ conversely the black right to left movement is a long trend. All money is made in trends and trends may be dominant or non dominant, Dominant trends continue on the next bar and non dominant trends reverse (change) on the next bar. These are the main cases for monitoring and analysis of trends. To see the timing for doing these trend profit segments, lets look at the next bar forming part by part and maning the new cases that show as this happens. Call example B case 1, and smbolize it XR. Call example D case 1 and symbolize it XB. Use a log column for the place to note the symbol. Make a log column for volume and use a D for dominant volume and use an N of non dominant volume A trader can see the market and log it at a glance. Entering and holding for theres two bars makes money in all cases. Entering is done by a signal ; holdioing is done by a signal and, xext we learn to coninue to hold or reverse on the next bar. [/B][/QUOTE]
Quote from jack hershey: Exact science pic 4 Quote from jack hershey: We just chose two adjacent bars and the choice was for the maonry making cases. CW refers to hese bars as LL and LH and HH and HL pairs and CW calls them classic trending bars. So I explored further by just putting in the forming of another bar and its corresponding end of bar volume known as PRV (Pro Rata Bar volume. This beginging to form bar was another of the 10 cases for adjacent bars. What is it like to look at charts of P and V and know the total volume of the forming bar at the beginning of the bar instead of waitihng until the end of the bar? It is not CW nor is it PA trading. By thinking about all bars and how they form and how they form relative to prior bars a trader is in a world called "front running". He knows to hold or reverse early in each new bar. Now he can begin to explore what are the other cases of adjacent bars and what implications do the PRV volume give to those cases? It also becomes evident that peaks and troughs of voulume are forming as orders of events. By looking at the geometric containts of parallelograms and how they next, a learning trader has a very full plate to work with, I geometry learners start to learn proofs by taking a few facts and putting them in order to draw conclusions. Here you see the same. By having two bars in a trend, you begin to recognize that money can be extracted between the entry signal and the reversal signal. you also see that reversals could be prolonged or delayed if a hold signal becomes interposed. adjacent bars that trend form two cases; the 8 other cases do NOT for trends BUT are located within trends or mark the ends of trends in some specific unvarying manner. I Like to just lay out the critical thinking monster opportunity facing all people who are willing to work to think. You aw how all dominant trends worked from right to left and you saw how all non dominant trends worked from left to right. Three price moves make up a completed parallelogram. A long dominant trend begins with a dominant trend, switched to an opposite non dominant trend and finishes with a dominant trend. So does a short dominant trend. See below:
Quote from jack hershey: So the potential trader delves into finding the cases and put yellow boxes around the one that ae not trending cases. You can watch them and their volume form. They look like these pairs: Quote from jack hershey: What happens next for the potential traders that has all these pieces is that he puts them together. Or rather as the market forms the peices he notes them with yellow and blue boxes All 10 cases and he has the PRV shaddow for the beginning of each volume bar. Parallelograms are nested from the smallest observable to the slower fractal to form three nested interlocking fractals. All the time you know the dominant or non dominant volume dessignation for each trend move of each segement of each interlocking fractal. On a log, you note the forming of bars, the forming of yellow cases and the forming of trends. Domiance or non dominance of each segement of each fractal is always known. Peaks and troughs of the parallelogram points are also noted on all three levels. In effect, you "know that you know at all times". You also get personal signals from your emotions. As you log annotated and do the "order of events" which is always reliable and established , you notice feellings of support, compfort and confidence that come from knowing that you know. Occcasionally during the building up of your P&L, you notice adding of contracts from profits. When fear, anxiety and anger appear you are being told that you DO NOT KNOW THAT YOU KNOW. you ae mixed up for some reason. At the time you enter your feelings in your journal and note what is happeneing in he market and your associated work. you focus on making a reasonable change in what you doing in your approach. something is amiss and you are being told this via emotions. you note the correction you need to improve your work in the is area. Going forward you appliy your technical solution to your charts and log. The BEFORE and AFTER of using this binary vector approach is like night and day. It is always fun to be frontrunning the order of events of markets and always discerning the single pattern of tje markets. If you read the Behavioral Finance blog, then you find out how events are calssified under two headings: continuation and change. you also get to read about human failings and why they occur. finally you get to see the solution to improving trading by jounalling and ajusting your approach with reasonable changes. What reasonable changes turn out to be are The things you do not have facility doing. As an expert trader your thoughts and feelings center on knowing that you know and the corresponding support compfort and confidence that begats. It is obvious that anyone can distinguish the 10 cases. It is obvious tha PRV automatically appears on your volume chart. It is obvious that the only paterern of the market is the parallelogram composed of three price moves and four corresponding volume moves. on all of the interlocking nested fractals. Any mind is capable of doing the work. Any mind that chooses otherwise can simplyy retire back the the cave and mope around in the dampness. Ask you self where does this noise and anomaly free construct come from? It comes form the granularity of the markets which prcludes the use of most types of mathematics for problem soluving. A person cannot sove any problem unless he uses the tools dictated by the problem. Ticks for bars and bars have adjacent relationships according to the tick placements at the time. the gowth of price movement is a function of the impetus of volume. Volume stands for thoase peope who are active participants in placeing the ticks in the market. Markets are living dynamic things which can be intimately partnered with all based on acceptance and trust in that the market is always right. Do drills to learn the market.
Quote from jack hershey: Let's look over the situation your chart is showing. Everyone can see that you choose to superimpose faster candlesticks over slower time frame cantndle sticks. The ratio is arbitrary and is not in a nested fractal orientation. A lot of traders feel the there is noise in markets and as well as anomalies. This kind of arbitrary display settings can be a cause of seeing noise and anomaloies that are actually not present at all. I would say about 99% of all display oriented traders create these false data corrolatiions in their routine practises as a result of poor discision making such as is shown here. Quote from jack hershey: Well, at least, we have a market now defined by a few principles that can be integrated and keep a trader in the market all the time and on the correct side of the market. Here are the principles: 10 cases of adjacent bars which afford a person a consistent measure of the first derivative of the two market variables P and V. A single pattern (parallelogram) which covers the market at all times and is invariant. An interlocking arrangement of the pattern so that the patterns are nested as fractals in a specific invariant ratio of events. So many things can interfer with thee principles; usually a plethora of artificial aids overwhelm and bury the essential principles of trading. The combination of principles into an integrated powerful system is done using a deductive reasoning approach that is most common in Science and comes as an application of the Scientific Method. The market variables are integrated into a whole and measured according to the most rigorous standard. The whole is called a Hypothesis Set (Paradigm) and the precision measures are called parametric measures. Para, a prefix, is found throughout this foundation and the building blocks built upon the foundation. Because of the human nature of making money by extraction, there has to be a way to touch base when anything can be amiss. The human notification is human negative emotions: anxiety, fear and anger. When things are right on the mark and proceeding logically, then the reinforcing emotions are support, comfort and confidence. Maintaining a trading partnership with the markets comes from a loop of ingredients. The bottom line in making money is using the correct facts in the order of events of the market. Market facts are normally known as 'tells'. They arrive in the space all the time. Clearing a path for information in trading is very difficult. It becomes less and less possible as time passes during the potential learning phases. The door gradually closes bad decision after bad decision. As a potential trader begins to learn, he HAS to ACCEPT the 'tell's of the market. NOT accepting is not a possibility. 'tells' come from the market if a potential trader is watching the market. Most traders never get to see the market as we just found out. 'tells' begin the loop. opposite is ACCEPTANCE. further along and going toward the next 'tell' is a small tiny beging thing called trust. By going around the loop, trust becomes more noticable. Ultimately, a person learns the market is always correct. A myth of CW is that, if this ever happens, it takes about 10,000 hours. The altrnative path is to get it straight on how the partnership works from the very beginning. What dissappeard as this loop was traversed sufficiently to get things straight? anxiety, fear, anger. What was discovered to NOT be in the space fairly soon? Probability was NOT there. The principles and their integration brought about the mathematical basis of the system of the market and trader. Binary becomes very evident immedately. MORE than binary is the gerund nature of the parametric measures. Adjacent things are compared only. As time slips out of the picture the order of events become the milestones in lieu of time intervals.
from Getting down and dirty is where the rubber meets the road ... thread Quote from jack hershey: we are trying to get a series of 10 days rolling. Attached is what we have to work with so far. As you see we do not have the volume slower fractal annotated as yet. My posting anannotated chart is unimportant. People just copy it and read the results. Doing the drills is what makes trading a possibility. Slowly the mind is built from the bottom up. it is a foundation. Adding the building blocks is related to levels of skills. Just getting to a place where a person can do MADA and have enough time during that process is a goal. The attached shows a volume annotation where PACE of volume is sketched in as the carrier. Carrier means the alternative to anchoring volume bars to an arbitrary horizontal line. The last part of the chart emphasizes how when PACE is in the basement to predominant activity is the horizontal case called the lateral. I used paint to draw the lines so they are not too accurate. Most platforms have cloning or duplicating to make things accurate. The significant thing on these posts is how the trader knows that he knows on the level he is trading upon. Carry over provides the day to day continuity and degapping is part of handling the placement of the three containers. K200 is a great instrument as we all will find out. Maybe we will be able to synch this market with the US market soon to get a full day of trading rolling for west coast folks. Quote from jack hershey: The next bar begins as a sym case. You know by volume that the bar is going to be a quiet time since the bar cannot especpe total overlap too easily. you know that from all of your work to create the sym case venn region and you excel 3D graphic from the 1600 bar sample. If not imagine me as the trader who does have his mind fully differentiated and is trading as if driving a car. this is the future for an expert SCT trader on any instrument anywhere in the world where there is sufficient liquidity. On all internals in yellow boxes, you fan all the RTL's and rtl's. The fan are on the given fractal Quote from jack hershey: here to get in the next fast fractal steps, I go to pink annotations. It will take several posts to get to the short trading fractral FTT but we will get there. What I do and post is nothing compared to what doing drills accomplishes. we come out of the long fast fractal move as shown in pink (translation case on two bars) The next bar forms a FBP after beginng as a SYM. Notice the volume is a clue to the fact that more than a sym is possible. you are clued inot looking at the PRV shadow of the following bar. If it is increasing, then you prepared to annotate when the ve comes along. this sets up an ACCELERATION context. You are going to be makin bacon as this is going on. the next bar forms an internal and it is on the rtl of the fast fractal so we fan. [/QUOTE]
the next bar forms an internal and it is on the rtl of the fast fractal so we fan. Quote from jack hershey: Here we have internals overlapping when the stitch forms as previously shown to you a few posts back. So we fan for this internal. Lets deal with the lateral going to the left from the FTT bar. You would put a green there on the bottom to have a bookmark of the new FTT possiblilty. as you can consider the volume is strady but it does demonstrate the change of dominance within the lateral. As a lateral develops is arrives on the dominant. After its volatility is set it goes to non dom. This can reverse or upon an exit out of the opposite side a new dominance like the original begins. The same is true if the lateral forms a container of an ending of the next lower fractal pattern. Here is the last parallelogram with bars after the FTT. I put in the following parallelograms in the order they would appear without any acceleration, expansion, or fanning. Some people just put in the lines so they can be dragged and dropped when the order of events unfolds. Why not, if you have time on your hands as you trade. 1. This was an FTT after an M1 and M2 after a VE. VE's are not FTT's. VE's create a zone between two lines. Thus the FTT was at the ftt of the M2. The zone sentence is as difficult to handle as was a two bar yellow sentence for considering the two bars as one. the word between leaves a question about "on "either LTL. "On" the new LTL would be included but what about "on" the old LTL? "on" the old LTL isn't a VE. FTT's do not occur on an LTL.. finally there are no M1 and M2's when the close is not in the zone. You just have to handle the difficulty of coming to undertand a sentence. In binary vectors, certainty is dealt with all the time and as you learn the lurles of MADA, you get to have the market dictate its offer to you in a certain and sufficient manner. we work through skill levels to become more effective and more efficient in extracting the offer. In this tread a trader has stated that he goes to a finer level of M of MADA to be certain of what is at hand on a more coarse level. Khis is IV Making Money section of your collection of knowledge. 2. hitting the buy button adds contracts to your position. For all levels of trading we try to use a Hold/reversal strategy for trading. This replaces the Entry/Exit (in the market or sidelined ping pong of OODA and CW trading). The OODA trader experiences two emotions sets depending upon whether he is in or out of the market. In SCT trading we experience only one set of emotions and the OODA in the market set is used as a warning that we do not "know that we know". When we do not know that we know we sideline and do undone MADA work to get back on the ball. For question 2 we take profits on an FTT and we do a market tool called reversal which achieves that. This tool also put you in the market on the other side of the market at the beginning of the parallelograms overlap on that trading fractal. The FTT isa poiint of a reversal just as a retrace is an even point on a container. This is the key way to differentiate a retrace from a reversal. In failing to learn to trade this is the key learning failure and is how most traders wind up on the wrong side of the market and not know it (Google Drwdown) For talented PA traders that I see, I often suggest to them that when they are in a HOLD, that they look for a PA entry in the opposite direction for ending the trade that they are in. PA does not pair entries and exits for trading as we all know. this is a tough situation to have on your hands, mentally. It leads, naturally (by human behavior), to fear, anxiety and anger. One aspect of smooth trading is the continuing emotional level of support, comfort and confidence. you can refer to driving defensively and skiing and sailing and reading and meditation as times when you have support comfort and confidence. Here, you are in a place where you know that you know. In skiing you may get a shift in emotions when you are skiing beyond your skill level. My daughter went through this series of skills. she was not expected in VI form to be batter than 20th in the Canadian Nationals. she took 4th, however, by going to the limit of her comfort, support and confidence zone. (her commutingas subsidized by her technician's corporations). Be smooth by being very earnest. 3. This was an 18 bar beginner or advanced beginner trade. So the next reveral is out there a little ways. If you are consulting finer level places to confirm your work, you are telling yourself to begin intermefiate work and trade point to point on the trading fratal. this means youare adding support panes on a sub level of the feast fractal (the sub sub level). thading pointto point affords mor frequent reversals. this allows you to trade during the expansiion periods alsp. A lateral has such aspects. All of this means you are olloking for translation coming out of two bars yellows on that next bar. Well before price heads to a bookmark you have traded after the FTT to be ableto head to the bookmark by being on the right side of the market. All of the above is addressing "jumping fractals" and particularly not jumping fractals. Skiing is an example of jumping fractals. A person does his warm up runs and then jumps fractals to go to the earnest level of skiing which is more fun and exciting. Racing is a natural outgrowth of black diamond skiing. I quit jumping @ 35 meters; I didn't like it as much as slalom racing. after college I got to "pre run" FIS races but I didn't hit the circuit. Doing some Warren Miller stuff was fun though (in his first years.) I,m on crutches right now as a consequnce of a fibula brack in '54 that did not help my ankle function it turns out. Very humorous x rays. that caused Q's in emergency...LOL Don't eceed you skill levels; do work earnestly, however.
part II 4. Hooray for excellent questions. your Q's form a series. So I am using the prior Q to segway into the next Q. not many people gat their minds to raise these Q's. So this is black diamond territory. By using nested fractals, we know that we know on three fractals. Our trading fractal is always the middle fractal. On illustration 12 we annotated (orange) the accelerated RTL and it was fanned as well, susequently. IBGS's occur on BO's ot RTLS a lot of the time. Drill 1. use 1600 bars to do steps 6 through 9 of a prior drill series to make a 3d mountain of OB's and add it to the other internal stack you have alrady built. If you find yourelf asking this Q when you have gone long on an FTT, sideline and take care of business for a while until you have completed a few fast fractal paterns. Personally, I DO THIS MYSELF. One the other hand keep making the effort to have the context down cold. All of this is in a shadow from a few bars back. as previously asked, what happens in a shadow of a lateral? One thing is: no money is made. we do not take on risk in SCT. Risk neutral is called "Knowing that you know". We are fanning on the rtl of the fast fractal all the time during this interval. this is an expression of shortness. we DO NOT make reference to our buy price on annotating. We do not have targets for profits either. What we do have is knowing that we know. I feel we are very very lucky to have this Q on the table and since it is we get to relish handling it to get to wher we need to be on I Market and IV Making Money. I suggest to traders to use midday to practise wash trades. this is like the goalie function in sports. Terrible thought: I played goalie in Lacrosse and in soccer. goalies do NOT win games. Goalies prevent their teams from ever losing. During expansion, we see formations changing and patterns operationg on sub fast fractals. we have fine level tools that ooperate all the way down to the granularity. we have all bases covered for each practisedskill level. thank god for market granulartiy and thefact that it cannot be eliminated for financial reasons. This is a QED thing. The wash trade is a pragmaticthing that is caused by not jumping to a faster fractal to trade within the envelope of the fractal one trades. One could jump fractalsand do the deeds to keep making money. It is a bad habit up to a certain point, but with supreme skill anything is possible. Look at the rate of compounding on the gold print posted here. 25K on 10k is a nice rate that shows full time trading is defined ans not taking the market's offer. One does not have to trade full time to meet any life style level of want or need. A wash tradesimply takes a portion of the day out of the trading picture. the cause of the wash trade is being "on the wrong side ofthe market" AND it is coupled with the trader's input to him form the market that he does not know that he knows. So, when is a fast fractal possible to draw coming off the FTT we determined? As you see a multi bar internal is there for succeeding bars as the fanning of the fast fractal rtl in red is going on. We get to the stitch after the OB and still cannot compose an rtl for a fast fractal long. the formation is still a sym which has to be treated as one bar even though it is many bars in duration. We are arriving as to what a lateral is and why it became part of the infinite (finite really) scheme of things. the ninth case. In literature often two couples are in conflict and a fifth character comes into the balance of things to play a third theme. A Canadian author made this a real deal. The "twilight" series author is 36 and has an annual income of 50 million, she lives in Cave Creek ,AZ by choice. so you see the shadow of the stitch formed lateral is approaching its limit (this is a math term) of the geometric shape of a horizontal parallelogram. this parallelogram case is required for completeness of the paradigm's logical development. Notice your mind has raised these questions because of its superb capabilityof putting the pieces together. you are painting the stokes to complete a picture. we all get to experience this richness as our pallette becomes complete. for I Market we add a page about laterals and how and why they work in the context of nested fractals. why didn't Lo consider the saucer formation in his formation research? Mental limitations of his team and their lack of familiarity with market logic and functions. These are NOT black diamond skiers in any way. for IV Making Money we add a page called wash trades. Note to experts: in laterals you trade the change of dominance and you use the DOM walls to show the lateral limits and you use Dominance on the 2 pairs of the OTR. In ES you are told the shift by the S/S in advance. 5. we log to discern these things. I went through the stitch order of events for both cases previously in this thread. How a plaform handles this is difficult to deal with. when you call technical services to get then to assign programmers to corecting this it is like dealing with Lo at MIT; they do not knowwhat you are taliking about. Some changes to platforms can take five years to get done. Platforms compete and do not deal with excellence. One of the most humorous is Peak trading a sub of Rosenthal Collins. I point out such platform failures just as a consequnce of my sensitivity. Look at the cave man level of french fries choice of platforms. also lok at the thread length of the software thread on additions of snippets and scripts. there you see additions for almost all platforms that can handle modifications. you also see the origins of platform inovations like no other place in the world. Automatic degapping is now a reality. It took one long time to get it into various libraries. Consider that you CAN log the order of events all the way down to the granulatiy of the markets. this makes it possible to see and understand the size of the market's continuing offer. If a student makes it through geometry he can wipe any PhD quant on any trading floor anywhere. 6. Ahhh yes this is more than an aha or an AHA; it is a religious ecperience. we see change of dominance on all levels all the way down to the OTR smallet granularity. we see this as a nested phenomena with the one pattern of the markets. All trands, no matte how fine deductively are dom, non dom, dom. a traid of dominance. you build from these interlocking relations of fractals with certainty and sufficiency. Summary. the mind is a wonderful thing. It loves to grow and will grow throughout your lives. the subconsious does the preponderance of the owrk. At some point you will recognize that you know that you know before you consciously can write down the basis and complete expression of your thoughts. for me personally, I like thedaily experience of answering questions. I have a reasourse where the answers are kept. Anyone cah have this resourse subject to some limitations of bad prior decisions that lead to incorrect beliefs. I am not giving you long answers. your questions come from the desire of your mind to further organize what you know you know. We only did 30 to 40 bars here to et to this point. Looking years ahead all plaforms will become more and more supportive of how the market works. You are participating in the paradigm shift that will occur in your generation (my definition of generation). Quote from jack hershey: Here is an annotated chart on the fast fractal level There is a volume move for each ftt to ftt period.