[gucci]

Spyder, sorry for disturbing you with questions pertaining the wash trades but they seem to be of utmost importance. So bear with me.

Do you consider a reversal trade on FBO after a FTT as being a wash tade or do you deem such trades as something each trader does numerous times during RTH just as a part of a routine? Sorry for the poor formulation, but I somehow couldn't come up with a better one.

[Spydertrader]

Originally Posted by gucci »

Do you consider a reversal trade on FBO after a FTT as being a wash tade or do you deem such trades as something each trader does numerous times during RTH just as a part of a routine?

Wash trades, for the beginner (or learning trader, if you will) represent an entirely different matter, than for the experienced trader. For someone attempting to learn the language of the market, Wash Trades build confidence. Knowing one has the ability to exit (at any time) at break even removes fear and anxiety from the trading decision making process.

For the experienced trader, a Wash Trade simply results out of market Geometry. Annotation error (should it come into play) occurs with deminished frequency as one gains experience. For example, yesterday's (03-04-2009) midday Lateral Point Three Container provides a great example of the type of 'Market Geometry' which, even if the trader executed their trades appropriately (reverse long at the container start and reverse back short at the container end), depending on one's fill (and slippage), a trader might end up with a very small profit, a breakeven trade, or even, a small loss. Please note, in this specific example, the trader executed flawlessly, but the 'Market Geometry' (along with the midday drop in Volume) prevented the trader from obtaining any significant profit. Moments later, however, Volume returned, Pace Accelerated and the market provided increased profits per unit time.

In this scenario, the experienced trader does not concern themselves over any Wash Trade 'gradient level' result. "Bummer! I lost a tic!" Isn't on the table here. The experienced trader simply knows "these things" (flat or extremely low slope) happen from time to time, and as long as they remain on the "right side" of the market, profits will flow into their account like water flows from a fountain.

The beginning trader still needs to build such levels of confidence. As a result, practicing 'The Wash Trade Drill" builds this much needed confidence - over time. The results of practicing The Wash Trade Drill, not only tells the trader he (or she) has the ability to exit at breakeven during all types of markets, but more importantly, the results of The Wash Trade Drill, alert the trader to the fact that more work may need to be done, across a variety of areas. In other words, one does not simply randomly enter when performing The Wash Trade Drill. One enters appropriately, then makes every effort to exit at breakeven. In other words, taking a profit or a loss when performing The Wash Trade Drill is not the goal. Done correctly breaking even on each trade is ver difficult to do.

With respect to how I view an FBO, my answer would depend entirely upon the specific context in question. I could view it as A. Screw-up. B. Benefit (additional profit) C. Jumped Fractal D. Unnecessary Vocabulary E. Innaccurate description of market information. or F. Perfectly anticipated result.

Personally, I do not see the need to describe such things as an FBO. I believe other (perhaps, phrases which provide additional clarity over the generic FBO ) descriptions exist which more accurately represent the information the market has attempted to convey.

HTH.

- Spydertrader

[treeline]

Originally Posted by double eagle »

Here is a second version of my 02/24/2010 chart.

Originally Posted by Spydertrader »

Much better.

- Spydertrader

In his second version of 2/24 (attached), double eagle's line weights and font sizes seem to indicate that the green container from 1405-1520 on 2/23 is equal in fractal weight to the green container from 1600 on 2/23 to 0955 on 2/24. The line weights and font sizes also seem to indicate that the maroon (brown?) container from 1000-1025 is equal in fractal weight to the other two containers.

Are these 3 containers actually on the same fractal? Or would it be more accurate to say that the containers 1600-955 and 1000-1025 are smaller fractals which are building P1-2 and P2-3 of the teal container, and the teal container is equal in fractal weight to the 1405-1520 green container?

It's probably clear that I'm considering a couple different interpretations of Spydertrader's "Much better" comment. Thanks in advance for any clues.

[NYCMB]

Originally Posted by treeline »

In his second version of 2/24 (attached), double eagle's line weights and font sizes seem to indicate that the green container from 1405-1520 on 2/23 is equal in fractal weight to the green container from 1600 on 2/23 to 0955 on 2/24. The line weights and font sizes also seem to indicate that the maroon (brown?) container from 1000-1025 is equal in fractal weight to the other two containers.

Are these 3 containers actually on the same fractal? Or would it be more accurate to say that the containers 1600-955 and 1000-1025 are smaller fractals which are building P1-2 and P2-3 of the teal container, and the teal container is equal in fractal weight to the 1405-1520 green container?

It's probably clear that I'm considering a couple different interpretations of Spydertrader's "Much better" comment. Thanks in advance for any clues.

Hi Spydertrader and all who are interested in PV relationship

I have the same question as treeline had.

Besides that, I would like to know how to treat "old trendline A" after we have Accelerated "trendline B" and "trendline C". Shall we -----------

1) Discard old trendline A?

2) Up grade old trendline A one fractal slower?

Any help would be greatly appreciated. TIA

[ptunic]

Thursday, Mar 04, 2010.

[Spydertrader]

Originally Posted by NYCMB »

Hi Spydertrader and all who are interested in PV relationship I have the same question as treeline had.

After reviewing treeline's questions, perhaps, they could best be addressed by the person who created the annotations.

Originally Posted by NYCMB »

Besides that, I would like to know how to treat "old trendline A" after we have Accelerated "trendline B" and "trendline C".

Unless you have never accelerated a trend line in all your years of annotating charts, you should already have the answer to this question. If you do not realize that you already know the answer to this question, what does the market do moving forward from the point in time where you feel things become confusing?

- Spydertrader

[ptunic]

Friday, Mar 05, 2010.

[Mr_black]

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