Here is another chart which is very insightful in its correlation. It examines Volume, Money Velocity and skill level.
This is a daily overlap chart that was put out with the two charts ehorn posted (in another thread last year). Don't want this to take the thread off topic, but seemed like an appropriate time to post it since the current log contains overlap. <img src=http://elitetrader.com/vb/attachment.php?s=&postid=2155782>
Thanks for the charts, Ehorn. They're very instructive. They also correspond with instructions from the Channels document, namely to avoid non-channel formations such as CCCs and those that occur during opening 'synch', sideline when volume drops to DU and below (and signal:noise consequently decreases) and during periods of personal uncertainty. I was trying to stick to one of the three fundamental tenets by always being IN the market, and another by using reversals to remain on the RIGHT side. For better or for worse, repping through the beginner level drills and debriefing pretty much ingrained the belief that I need to stay in the market. It would be interesting to hear Jack's comments. Also, it's interesting to note that competent beginner level trading, with an early entry, reversal near the saucer's zenith and an exit at bar 76 would have exceeded the daily range.
Thanks for the link to Bi9foot's updated levels, Tums, but they've increased my confusion RE correct PACE levels. I've been obtaining mine by looking at one of Spyder's charts every couple of weeks and visually determining approximating values. I downloaded the AutoPace code (written by Palinuro), which seemed to offer significantly different values. In a PM, he explained that his version reflects much more recent volume values, whereas Spyder's incorporates much more historical data. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2155935> All three versions seem to offer different levels, so the question is, which do you adhere to?
Here's the unamended chart, with trade markers inserted, in preparation for the two remaining parts of the debrief. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2155940 width=800>
I agree with your approach and adherence to the tenets espoused and encourage you to stay on that path. An interesting note about the matrix is that it is a measure of opportunity (i.e. volatility = price movement = extraction potential) and it also effectively demonstrates the direct correlation of Price to Volume. I believe it also demonstrates the logical basis for pace lines. I would also note that it is my hope that my posts here are not a distraction from the most excellent path you are traveling under Jacks guidance. But an effort to share some resources which have helped me (and others) along the path. I have very much enjoyed quietly following this thread and seeing your progress under his tutelage. Also, that you are witnessing (first hand) his ability to assess a learner's progression, and to steer and focus the learner in order to further their understanding. I wish you continued success in your growth.
Spydertrader described the method to calculating pace lines in this post. The pace levels I posted are calculated using the method described in that post. I believe due to limitations in TN Spydertrader uses a different method. From my investigations, it looks like 1600 bars are used since I can generate the same pace levels as TN. I cannot speak for Palinuro's code since I have not idea how it is calculated. I use the pace values calculated using the method described by Spydertrader. I calculate new values about one a week.
Thanks so much, Bi9foot. Your link, in addition to the chart posted by Ehorn, have answered a persisting question of mine, in addition to breaking down important mechanics to an easily digestible level. And, as an added benefit, I finally know what the 1600-bar lookup table refers to!