Reverse short when price on bar 3 comes to the book mark. You are now short and picking up making money where your first trade left off taking profits. On the ftt of bar 3 reverse long. Bookmark the ftt in green. You made an additional 3 ticks on this trade on the ftt. You are long again and bookmarked. Look at bar 4 Do you have an ftt? Do you have a VE? No you do not. You hold after you did the wash reverse back short when the bookmark was hit. do you put in this bookmark on the bottom of the bar? No you do not since there is no ftt AND you aree already short. Bar 5 starts out as a SYM and goes to a FBP. Is it an ftt? Yes it is. reverse long and bookmark bar 5 bottom we have many trades in by now. some make money others get us on the right side of the market by washing at bookmarked prices. The last money maker was from 72 down to 68.5, only a little ovr 10% of margin. Our total run so far is from 75.5. We go short on bar 6 at the bookmark and reverse long on the bottom of the bar at 66.5 Almost 0 points short from the open and all of the range so far in the day. We end bar 6 holding long after our fourth ftt of the day. For those who follow the pattern, you can see where we are as the bars of the day pass. we are ahead about 10 points of realized profits and holding long on bar 7. We need to annotate the bar 7 as soon as possible to know that we know about the bar. Not annotating it put you here in your MADA process. Bar 6 gives point 1 and point 2, do you see point 3 happens soon in bar 7? Yes, of course. What happens after the point 3 of a container? An ftt. What do we do on FTT's? We reverse. So do not fail to annotate ASAP!!!!!! So the open was a six bar price move and we are long and bookmarked and annotated for bar 7. Bar 7 is not a VE and not an FTT. We are past point 3 and looking for an ftt. The drill is to reverse on the ftt, book mark it and annotate. This keeps us on the right side of the market and always taking the offer for the whole pattern thqt is underway. Oh by the way, they are still not building the fabric tube to collect all the spilling oil and thus protect all the coass the fisheries and make money selling opil and liquified natural gas to refineries and natural gas customers. does anyone know the cost of a rectangle of reinforced fabric that is 3200 feet by 5500 feet give or take? 1,000 yds by 2,000 yds? 2 million yds at say 100 dollars a yard in place. 200 million bucks. 60,000 barrels a day sell for how much? 50 bucks a barrel gives 3,000,000 dollars a day. Not much. In 60 days it would mount up to about the cost of the fabric and then it is all profit the rest of the way less hurricane costs.
we took profits at the top of bar 8, bookmarked it and we are reversed short. The long trade was three bars and went from 66.50 to 70.75. On bar 9 we have a SYM. Bar 10 gives us a lateral Keep your case sheet handy. On this BO of the lateral we have a black stitch. So fan the original rtl to include the lateral and see that the stitch second bar is the FTT afterthe book mark you reversed on and then went to the ftt to take another round of profits. (1 point). So bookmark and reverse short. You go through the bookmark on bar 12 and see another ftt where you make another point in profits. that puts you short through the end of bar 14 where you go long and take another ride up to bar 20 where you then go short again to take the ride to the bottom of bar 23. There you ride long until you complete the tour to bar top of 27 where you go short and work your way to bar 34. At some point in the day you get to 30 points profit and add a contract. You more than doubled your capital in a day. 1 contract to 2 contracts on profits of 30 points. Look at how going from 1 contract to 2 works today. that means you will get to 3 contracts tomorrow and later in the day to 4 contracts. Wednesday you work your way past 8 contracts and add a couyple more. On Thurday you break 20 contracts and Friday you have over 40. next monday you have 50 contracts and hold at 50 and take 50 contracts of profits a day from then onward. 50 contracts gives you over 100,000 a day for the rest of your life. How hard is it for a fifth grader to trade on an FTT and bookmark it? Can a fifth grader annotate, reverse on ftt's, reverse on book marks and post pics of each bar? Yes of course. Find a fifth grader and let her read this thread. You have it made until the fifth grader's mother cuts out on you and runs with the kid. This is the replacement for BP and the people it makes jobless by doing oil spills. If you find a reason why this doesn'twork; it simply means you are making a mistake somewhere. Can you imagine T666 ot traderzone or T28 doing this? I can't It is simply not possible for those guys to think critically and keep making money all the time. Get a fifth grader. Get two or three fifth graders. Do you think it takes 10,000 hours to learn to trade without ever taking a loss? Not if you are a fifth grader........ Can you smell the rubber meeting the road as yet??????? Do you remember the smell of condoms dissintegrating? Look at how this trading fits into all slower fractals that go from point to point. B2B 2R 2B R2R 2B 2R.... I would do this as videos if ET could handle videos. Heres what the annotations look like and you CAN SEE the FTT!!!!! naturally I threw in four or five bars more of money making. Look at that ftt on the short hold which went thru a couple of VE's for us. I know its tough on a bar that goes from sym to a FBP to an IBGS and then a hitch and finally a black stitch. No matter how sloppy or how long you wait to hear your mind say all those things you longed and read line after line on your logging sheet 7, YOU STILL MAKE MONEY. we had that lil old ftt and we went long and we drew in the parallelogram and dutifully put in three bookmarks and did all those ftt reversals and bookmark reversals and finally came the the last ftt. WE MADE every nickel offered all the way to the ftt too by the way. Is this an art or just a dull mechanical approach that makes all of the market's offer all day long on every bar that is formed? It is a fifth grader dream come true. Get a fifth grader ASAP. Why aren't we losing money on these trades?? what keeps going right. Where are those lousy swans whenthe detractors need them??? How about an oil spilled brown pelican whose bill holds more than his belly can. Lets knock off moves 5 through 7 with a few well chosen containers. There are some more book marks as you see. Chart 20 is the "workout chart" We have to sweat a little now that you can do ftt's and bookmark reversals. This chart has some fans. WOW!!! Look at those two bar yellows creeping in suddenly (they take 10 minutues each) this is tough and dirty stuff. You have to do what was already written in this thread over and over. you have to log and keep a bookmark going through a yellow zone.
Here you see bars 6, 7 and 8 which make up a trend. Trends are defined as a set of price bars contained in a parallelogram that begins and ends with an ftt. This is found in Trend Following if you have my copy where I wrote this in the margin to correct a misconception written by covel. there is a name for bar 7. Is is named "Not VE, Not FTT". As I said, all of this is Science and follows rules of paradigm theory and logic theory. All cases of anything have to be considered. there are three signs in math that come up: <, > and =. A "NOT" is a way of covering the = under some circumstances. We all are very lucky that markets are not, scientifically speaking, "continuous. This gave us a fork in the road. Here we are taking the less travelled road as Robert Forst mentioned after getting rejected by a chick in Vermont one night. By see ing a VE didn't quite occur we can also see that an ftt did not occur. If you are this alert and rational you get to see that we need to "WAIT" logically speaking. Another logical name for WAITING for an answer is called "CONTINUING". The diagram chows the point 1, 2 and 3 on bar 6 and the bottom of bar 7. after the bottom of bar 7 we need to keep our eyes peeled for the ftt. Some things can postpone an ftt. They are set forth earlier in "rubber". A not VE, not FTT combo is a potponer. No bookmark either. The Q of a differnt fractal is a long way off when the three bars are on a faster fractal beginning a slower fractal trend. BUT rainman is cool when it comes to considering just where this faster fractal is in the scheme of things. Bar 6 bottom could be a point 3 and so could the top of bar 8. For making money we just traded from the bottom of bar 6 to the top of bar 8 and banked the profits. After hours is when we count chips and we find point 3's on different fractals. No finer tools are required as you say. If a person uses them he is just making more money. I put up 20 pics yesterday to make the point of always taking all the ticks of the market's offer. This presents problems to those who omit drawing the rtl's , ltl's's and the bookmarks. All the points involved are ends of bars, meaning tops and bottoms. Putting a bookmanrk on an ftt is easy but getting the time of the ftt is apparently hard for a few. A lot of people have put up logs of their monitoring and when those are reviewed it is easy to see when the ftt occurs and when the reversal was done. Usually the tune up on a log and chart gives an additional 15 points a day in profits. If a person uses a horizontal line where he rverses, then he can more easily see where to wash to keep making all the points in a trend segment of several bars. That is just a housekeeping function. BUT the bookmark is there as a sentiment measure. By only taking the ftt's as trades on the next slower fractal a lot of reversals are omitted (you should annotate everything still, though). As everyone has been seeing the price of the ftt is there a long time for a person to take the trade. Most people are doubters about when ftt's are occurring. I think that is part of the head hurting for some. As we see when V is done, the V gives the ftt before price gives the ftt. One of the CW myths has this the other way around. Too bad for CW. Today started with the pattern that looked like R2R 2B 2R 2B 2R. There were few bookmarks, as well. dominant volume was red and a person added a contract on that dominant red volume. If a person was using the pattern, he could see the points of the pattern for all 8 bars whereby the slower pattern wqs observable. Th two moves (long non dom and short, dom ) where as enjoyable as the initial pattern. The P to T to P to T to P on the volume was in synch with the pattern price moves. This was a 50% per contract profit when the non dom then dom was there to handle the next 2B and 2R. Two 50% meant to add another contract at the end of the 2R Was it possible to still be coherent for the long that followed? there was a P and T and a P to get to B2B. This is point 2 and you may be looking for point 3 on a non dom red move. taht happened and the trtend went to an FTT on peaking volume that was dominant black. fortunately, after two demonstrations of the pattern, another demonstration occurred. It was about more than 10 points per contract by that time so another contract was added from profits. Here we were with 1 contract yesterday am and now part way through the day using the pattern we now have no Black Swans and four non Black Swan contracts in the account. the P to T to P repeats to begin a B2B 2R 2B and a non dom 2R follows and a weak PACE changed little black 2B ends the pattern. here is what the laziest guy on the block says at that FTT on the 2B: "I am going short and waiting for volume to peak after I get back from lunch". If he only goes to lunch for 45 minutes his dream came true. He missed seeing the usual for the outside bar which counts for two points in a pattern. It was as usual a point 2 followed by a point 3. what comes after a point 3 on increasing dominant volume? answer: The end of lunch. after yet another B2B 2R 2B we get another OB point 2 and point 3 test on an R2R 2B 2R that finally ends on bar 76 after a 14 point short run down where you had a R2R 2B 2R 2B 2R to complete. notice the @b is non dom and the 2R is dom. Volume is part of trading. yeaterday we saw the way parts of the pattern were constructed using ftt's and bookmarks on the fastest observable fractal. today we used those little guys to build the V, P pattern. you see the P to T to P for the first move (B2B or R2R). All P to T's were there next as non doms going from point 2 to point 3. then we finished with a Dom to get an FTT. Sometime we stayed INSIDE the parallelogram and did another 2B and 2R or vice versa. everytime overlap ended it was on a T of volume; then a dom sries of bars followed to get to a P and finish the first move of the pattern. I know I did not go slowly. I just did it. As Nike says: JUST DO IT!!!!!. Now you know why Black swans do not wear sneakers. They are fictitious ducks. Do you know why australia is called out back???? It is because that is where a Japanese car was discovered being driven by Black Swans not wearing sneakers.
from collection pattern thread http://www.elitetrader.com/vb/showthread.php?s=&threadid=214487&perpage=6&pagenumber=3
from a simple price action approach thread http://www.elitetrader.com/vb/showthread.php?s=&postid=3214499#post3214499 05-13-11 04:58 PM Its neat to see so many people posting on trends and their containers. As has been reitierated by most: trend lines keep changing and only so often do you get one that works. Certainly there is an answer that cures all these inaccuracies. trends occur on all fractals cuncurrently. they build in a fixed ratio of 3:1. Take the post of the person who did three parts to get a slower short; then he did three parts to get a long slower trend. But he enclosed the short and long with a heavy line that skipped drawing the RTL and LTL of what I just mentioned. Tthe ends of his bold line connect the wrong things together as a consequence. none on this comes from annecdotal reasoning; deduction is used to get the singular pattern of trending in markets. start with the finest size (ticks) and build your system from there. On any chart adjacent bars allow you to build. you find out two things in the process: You have to deal with the volatility changes in channels (trends). All of this is in each poster's future if the reader reads and does what he is called upon to do (internally and not by me) trends either accelerate or decelerate after the parallelogram is able to be drawn. Do VE's to accelerate and do fanning at "internals" to decelerate. As another has said: FTT's are the name of the game. Trading on a given fractal is done from FTT to FTT. The FTT is what ends a trend. A trend is there and annotated; you are in according to the RTL sentiment. You go in on the last FTT and then went through the BO of the RTL and on to point 2 of the parallelogram. Then from that peaking volume you went on hold to the trough of volume @ point 3 of the parallelogram which you then drew in order to see from point 3 the TREND FAIL TO TRAVERSE (FTT) to the LTL that you drew from point 2. This is hold and reversal trading which no one here posting has graduated to as yet. You use edges and entry/exit trading and you predict and bet on your predictions. OODA trading. Trend monitoring and analysis precludes this silly practice. Lets accelerate a trend on a VE of the LTL. Move point 1 to point 3. Use the VE as point 2. Now look for the end of the trend at the FTT of the new container. Throw out the old container by non stationarity rules. Lets take a look as an "internal" is appearing on a RTL. you have to slow down the trend at this point simce price is just meandering along the RTL on lower volumes. So fan the RTL from the point 1 where your hold began and duplicate (clone) the RTL and put it on the point 2 you are now ALREADY USING. lets look back a bit. If you make trading trends out of ftt's on faster trends; then your trading on the slower trend is a snap and very free of fear, anxity, and anger. If you connect the FTT's of your trading trend you have a large outer trend container for your traverse trading from FTT to FTT (including the acceleration and deceleration adjustments. THIS ALL CAN BE SO EASY IF YOU USE PRINCIPLES AND THEIR ORDER OF EVENTS. BUT it will not happen for most of you. You will not take the time to follow my suggestions. You know you MUST and you will not. most will continue to do the myth based annecdotal type hit or miss. some will nest fractals but skip and jump fractals in the process. All of you will continue to "take trades doing entry and exit. will the day ever come when you figure out both entry and exit are the same but opposite things. I think not. YOU ARE JUST READING A LONG NONSENSICAL POST YOU WILL TRY AND TRY TO FORGET. 5. when the book market is broken, fan the RTL copy this post and put it in your three ring binder on top of the first entry in your three ring binder.
this may happen more than once. So always do the same thing at the END of every trend as it occurs in the Present. you trade ALL signals the same way. You reverse to the correct side of the market. you now have two trading signals: the end of the trend and a bookmark violation leading to another end of trend. From now on post these annotations on every chart you post. copy this post and put it in your three ring binder on top of the first entry in your three ring binder
6. In any trend after point 3 of the parallelogram, fan the RTL when an internal brdges or straddles the RTL copy this post and put it in your three ring binder on top of the first entry in your three ring binder.
here you see posted practices repeating and @ the square box a new rule appears. 7. When the LTL has a Volatility Expansion, accelerate the RTL. 8. After the VE there will be two moves is price is in the zone (between the old and new LTL's. the pink circle shows the FTT of the scond subfractal move. copy this post and put it in your three ring binder on top of the first entry in your three ring binder
from starting trading thread Here are 8 quick to learn rules for doing hold reversal trading. A 5 min chart is the usual fractal. !. annotate all fractals using a parallelogram. 2. Trade from FTT to FTT of parallelograms. 3. Use hold/reversal trading and NOT OODA trading. 4. Use a Green horizontal bookmark @ each FTT. 5. If a bookmark is violated, ,reverse and hold until new FTT. 6. If an internal bridges or straddles an RTL, then fan the RTL and look for FTT. 7. Accelerate RTL's on VE's of LTL's. 8. On VE's the FTT will show up after M1 and M2 (subfractal moves) if close is between old and new LTL. Otherwise if close is NOT between old and new LTL's, then consider VE to be point 1 of new trend parallelogram. The approach is a deductive one found from deduction using a HS and PM. The mathematical foundation for the PM is the binary vector. Under these circumstances the market has no noise nor anomalies. Trading results are in the range of over 3x the daily H-L range. A single P, V pattern exisits the fill the projected (intothe future) parallelogram. Volume leads price. The pattern's chief characterisitc is that the trend ends when the price cannot traverse the channel of the parallelogram (Failure to Traverse) You may wish to read a thread entitled "A simple trading method" where what is being learned by most is learning failure. One of the most prevalent characteristics of traders who do not quit is that they do not make much money and they have strong enough beliefs that they would rather be correct than rich. Most fear trading more than 4 contracts (See nodoji as a reference for this limitation based upon fear and anxiety). also read the BF or BS in Bahavioral Finance to find out your personal characteristics and what to do when you encounter symptomatic feelings such as fear, anxiety and anger. ,,,. Good luck.
We could apply Wyckoff's ideas, make 1x range automated, triple our contracts to make 3x and go to the beach too...