Spydertrader

See attached. What makes the two highlighted areas different? The 'SYM Lateral 1 - Dom' conforms to the examples in The Lateral Formation Drill (and follow up). 'SYM lateral 2 - Non-Dom' does not conform to the examples in The Lateral Formation Drill (and follow up). Note the difference. - Spydertrader

I have always found it wise (when differentiating a certain 'thing') to first place one's focus upon the creation of the 'thing' before looking to see how a 'thing' might end. In other words, unless (and until) a trader has the ability to see the differences between the examples provided in The lateral Formation Drill (and follow up) and all other examples of Laterals provided by the market, nothing is gained by looking for how or when (or even why) a specific type of Lateral ends. The highlighted portions of The Lateral Formation Drill (and follow up) outline the locations of the individual examples (within the specific days in question) in an effort to make the examples easier to see (by avoiding 'overlap' of the examples). I did not intend the annotations to convey a location of Lateral Termination. HTH. - Spydertrader

No. Doing so omits Context and Order of Events - equally important as differentiating 'the thing' in order for differentiation to produce the correct chart annotations. - Spydertrader

Yes. No. - Spydertrader

Your question provides an excellent example of the difference between transference and translation. For many months, I have attempted to impress upon everyone the significant importance of learning the process of differentiation - to learn how to learn to see the differences between that which actually exists, and that which people might simply believe exists. Developing a fully differentiated mind allows a trader to see the market from a standpoint of certainty. In other words, monitoring the market involves much more than placing lines on a chart. One must know why a certain line (or a line of a certain weight) exists at a certain point in time on a chart. Still, many people (even to this day) stop well short of reaching the point of certainty with respect to differentiating the market sequences and / or formations. Often, these same people 'think' or 'believe' they have arrived at a correct answer, rather than (as I have often advised) allowing the market itself provide the answers required. So, here we are at yet another drill (a drill designed to force the process of differentiation onto anyone up to the challenge). The rules were very simple: One cannot move forard, one cannot pass 'Go,' One cannot 'collect $200.00 Dollars,' one cannot even think about any other types of laterals until a trader correctly (and completely) differentiates The Lateral Formation Drill (and follow up). It's a very simple drill (please note, I did not say 'easy'). Look at the examples and the locate other examples (as time moves forward) in an effort to 'see' how the market operates in an effort to know what must come next with respect to the market's formation of any Lateral. Already the discussion has glean one very important characteristic: Each of these specific laterals start with a Sym Pennant. But, is this the only characteristic of these specific types of Laterals? Surely, something else must set them apart from all other things which appear similar. In other words, why (on my own chart) have I annotated yesterday's midday period (1-14-2010 @ 12:35) as an example of these specific types of Laterals, but at EOD (1-14-2010 @ 15:15) I have not? You see. I haven't placed a greater importance on these specific types of Laterals, as much as I am forcing people to learn the process of differentiation - correctly and completely - before moving forward. Already (within the recent posts), we have questions and concerns surrounding a whole range of sub-topics, rather than, focusing on the step by step process of learning to see that which the market has provided. 1. What makes all the examples provided by The Lateral Formation Drill (and follow up) exactly the same (meaning different from all other types of Laterals). 2. Once you have the above answer, then you can determine the differences between the examples provided in The Lateral Formation Drill (and follow up). It is these subtle differences (when combined with Context and Order of Events) that provide the correct annotation required for your chart. How does this relate to the differences between translation and transference? While attempting to transfer to everyone how to go about learning the process of differentation, some have translated my efforts into placing an 'importance' level upon certain types of laterals (or even onto other areas totally unintended). Now, this doesn't make anyone a bad person. It's simply human nature. How we perceive things is colored by our own mental filters derived from our individual life experiences. I've done it many times myself. The point of all this? Always endeavor to understand the intended meaning of the information being conveyed. In such a fashion, you'll forever ensure you continue to head in the right direction. HTH. - Spydertrader P.S. (All times Eastern and [close of] ES [bar])

Hopefully, the following analogy can help you to see where you need to focus ... If I asked you to tell me the differences between two different types of tools - a claw hammer and a hand saw - you might begin to point out that one uses a hammer to pound nails into wood, but one uses a saw to cut wood. If I then picked up a ball peen hammer and said to you, "Well this doesn't look like a tool used for cutting wood, but its made by Craftsman (just like the claw hammer and the hand saw), so I dunno what to think." How quickly would you smack your forehead? Now, let's lok at what you wrote .... O.K. So you do see that each of the examples in The Lateral Formation Drill (and follow up) begin with a Sym Pennant. Perfect. Now. Read the above quoted lines a few times. You appear to be noting, in once sentence, the observation that the lateral requires a doji. Yet, in the next sentence, you indicate 'a bar' is all that is needed. Which do you think the answer to be? The above paragraphs looks to me like you picked up a ball peen hammer and decided you might not be able to tell the difference between this hammer and a hand saw because they are both made by Craftsman. Look closer. You have not described the same things here. 14:05 and 15:35 conform to the examples provided by The Lateral Formation Drill (and follow up). Whereas, the (gap adjusted) 4:05 to 9:35 does not. You wrote (earlier in your post) about 'testing or setting' the boundary. Perhaps, you should look carefully to see which one of these two observations provies correct. For now, I wanted to focus on the different things in an effort to motivate people to 'see' that which actually exists, and not, simply what they believe is there. How one annotates these different things first depends on context, and then depends on where they fall within the order of events. HTH. - Spydertrader

You do not have this 100% correct. - Spydertrader

Two piles for the laterals currently under discussion. To be absolutely clear, everyone should have the ability to locate two examples from yesterday which conform to the examples of laterals provided in The Lateral Formation Drill (and follow up). These represent the types of Lateral Formations which need differentiation first. Then, and only then, should one move onto other types of laterals. - Spydertrader

Each example within The Lateral Formation Drill (as well as the follow up) differs greatly from the examples you have picked from the chart posted by rs5. In other words, you should be able to place all these Laterals into two distinct piles. One pile should contain The Lateral Formation Drill (and follow up) examples, and the other pile, should contain the examples you pointed out in your post. Locate that which makes the two piles different, and you'll have the answer to your question. I'm not trying to stifle discussion with my response to your query. However, I am attempting to get you to see the importance of the process of learning to differentiate that which you believe you see, from that which actually exists. You see all (The Lateral Formation Drill [and Follow Up] along with those you pointed out in your post) examples as the same. I do not. More importantly, the market says they are not all the same. Subtle differences. They really do make all the difference in the world. - Spydertrader

Sure thing. - Spydertrader

Yes. - Spydertrader

You already know the answer to this question. Why do you already know? Now. Compare your example (11:00 area) to the examples contained in The Lateral Formation Drill. Your example is missing something present in all other examples (from the Initial Lateral Formation Drill and the Follow-up) which I posted. In other words, your (11:00) example (in its posted form) represents a different thing causing you to compare apples to oranges (instead of apples to apples). In fact, you can compare this (11:00) Lateral to one annotated earlier in your chart snippet in order to easily see what is missing. For now, remain focused on the these specific Laterals shown in this specific drill (and follow up) until you can 'see' these differences in your sleep. Then move onto different types of things. N.B. When I say your example, I am looking at your chart snippet. Always make sure to compare apples to apples when seeking answers. So, while the answer to your question is yes, it is so - not for the reasons you probably believe - but for reasons far more elementary to understanding. HTH. - Spydertrader

Yup, and without exception. Probably why I keep encouraging people to work through the process of Lateral Differentiation. I designed The Lateral Formation Drill (and its follow up) to remind people to learn to differentiate ... 1. Context 2. Order of Events. 3. and then the thing (in this case laterals). HTH. - Spydertrader

The change in the methods by which the CME reports Volume had zero net effect on how I see Volume. As long as Volume reporting (from whatever source) remains constant across all time intervals on any given chart, nothing is ever going to change - with respect to Volume. - Spydertrader

1. Tuesday (01-05-2010) @ 15:10 (all times Eastern and [close of] ES bar), the market provides a Lateral. Does this look the same or different than an example from The Lateral Formation Drill? What were the outcomes of each? What did (should) one learn? 2. Wednesday (01-06-2010) @ 12:15, the market provided another example of a Lateral Formation, which forms like another example within The Lateral Formation Drill. Does this example look the same or different than an example from The Lateral Formation Drill? What were the outcomes of each? What did (should) one learn? 3. Wednesday (01-06-2010) @ 14:40, the market provided yet another example of a Lateral Formation, which forms like a third example within The Lateral Formation Drill. Does this example look the same or different than an example from The Lateral Formation Drill? What were the outcomes of each? What did (should) one learn? - Spydertrader

May everyone enjoy a very Happy, Healthy and Prosperous New Year! - Spydertrader

No. I intended the information previously posted to included ensuring everyone focused exclusively on the three Laterals Highlighted in Blue, and (for the purposes of this specific excercise) ignore any and all other Laterals which devloped during the day. I did not intend for those working through the exercise to focus solely on Price. HTH. - Spydertrader

As a follow up to our Las Vegas Meeting, I will (from time to time) post a drill (or a chart section) chosen specificaly for its ability to illuminate the current environment. Attached, please find a Differentiation Drill which focuses on Lateral Formations. At first glance, many will see these three examples (highlighted in blue) as exactly the same and without difference. Feel free to work within this thread, offline, in small groups, in large groups or all by your lonesome - whatever way you feel best suites your needs. 1. Do not overcomplicate. 2. Do not overcomplicate. 3. Do not overcomplicate. 4. Locate the subtle (or not so subtle) differences. 5. Determine what (if any) information the market provides based on these differences. 6. Note what the market provided next. 7. In the future, when 'seeing' a repeat of one of these examples, compare the outcome. 8. Note what (if anything) you learned from the process. 9. Wash. Rinse. Repeat. 10. Do not overcomplicate. The above drill focuses only those Lateral Formations Highlighted in Blue. Done properly, this drill will point out a few items many have overlooked. Good Trading to you all. :D - Spydertrader

At the end of each month, I withdraw profits from all of my trading accounts leaving enough money in each account to meet the margin requirements of 40 ES contracts (my current [self-imposed] size limit for any one trade). I move these excess funds into a savings account until the end of the year. At that time, I move a dollar amount equal to my yearly expenses (plus an upward adjustment due to inflation or changes in lifestyle), and my estiamted remaining tax liability, into my checking account. As a result, I 'live' in the current year off profits earned in the previous year. When I first started trading, I'd perform the same functions - but on a weekly basis - as my top priorty (at that time) was growing each trading account. As the accounts grew, I transitioned to a monthly budget, until finally, I settled on a yearly budget with a monthly withdraw. The most time consuming part of this whole process involves the creation of a monthly / yearly budget. Your checkbook log (combined with credit card statements) helps with the broad strokes, but you'll want to be as detail oriented as possible when it comes to the budgeting process. However, when finished, you'll have the added benefit of knowing exactly where all your money went - and whether (or not) you want to continue spending in those specific areas in the future. I found the entire process quite eye-opening. I'm confident you will as well. Lastly, always, always, always make sure you set aside a cut for Uncle Sam (and / or whatever governmently entity currently has its hands in your pockets). Seek (and pay for) top of the line expert legal advice when it comes to your taxes (preferably someone who specializes in trader taxes). This is one area where you do not ever want to cut corners. Good trading to you. - Spydertrader

No harm. No foul. It's quite easy to misenterpret items posted in a two dimensional environemnt such as a web site. I recommend people learning to trade don't even fund a trading account until they have fully prepared themselves through a learning environment. The market provides all the information a trader ever needs. Unfortunately, many traders fail to learn the language spoken, prior to, determining they 'understand' what the market has chosen to provide. I do agree with you with respect to jumping in too early. Once real money makes its way into the market, a whole host of psychological issues creeps into an inexperienced trader's mindset - irresepctive of trading methodology. Better to learn to crawl, walk, run and then learn to fly. Good Trading to you. - Spydertrader

Then you simply chose to interpret my words in a fashion unintended. How can an opponent 'whip one's butt' from simply watching a fight, but not participating? Monitoring the market (in an effort to learn something), does not imply a need for the learning trader to be placing actual trades during this time frame. - Spydertrader

The market itself represents the absolute best instructor for learning how to trade. - Spydertrader

I have a conference call tomorrow with Glen and Pete (Trade Navigator CEO and VP everyone met in Las Vegas) to discuss the following enhancements to the TN Software. IF anyone has additional suggestions for enhancements, feel free to send me a note via PM. Good Trading to you all. - Spydertrader ************************* 1. Daily gap closes, an option on the chart that if you check it closes the daily gap for the chart only 2. Trend Lines A. Add a thickness(Weight) option ,10 levels of thickness B. Add a style option, solid line, dashed small , dashed large, dash-dot C. Option to freeze the slope: check box D. Change Right Mouse popup menu: 1. add +/- item for the thickness(weight) 2. add +/- item for the style 3. add slope freeze option on/off 4. add +/- to extend right side of the line (but if the slope is locked we may not need it) E. add change color - pops up a color palette F. Add duplicate button to Line Edit Window 3. Import file to draw objects: trend lines to start 4. Automated Channel Tool (with Automated Volatility Expansion)

Thank-you for your concern. I'm honored that, rather than focusing on trading today, you have chosen to 'look out for the little guy' and question whether or not I charge a fee to attend any seminar where I plan to present. For the record ... Whether presenting to a small group (in Cleveland, OH and White Plains, NY) or standing before a large group (in NYC, Chicago [at the CME] and Tucson, AZ), in all, I have presented some 17 times over the years. Not once, have I ever charged for my services, knowledge, skills or experience. Any costs (associated with room rental, audio visual equipment, meals, beverages, taxes, service charges, etc.) are paid directly to the proprietor of the meeting location. For this specific meeting (Las Vegas), a software and data provider generously stepped forward and sponsored a significant portion of the costs of our ten hour long meeting. Again, I'm confident the 40 people attending our Las Vegas Meeting appreciate your concern. Good Trading to you. - Spydertrader P.S. I also do not charge for my answers to the countless PM's, IM's, emails, and phone calls I receive each day.

Recently, a few individuals have experienced certain unexpected events. Due to circumstances beyond their control, a few individuals had to back out of attending our upcoming meeting. As a result, several slots have opened up for The Las Vegas Expo conference. Since the room for our event filled up rather quickly, I informed a number of individuals that I would 'waitlist' their names - in case an opening occured. Anyone still with an interest in attending the Las Vegas Event should send me a PM through this web site. - Spydertrader