Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Recommended Posts

Thursday, 04/22/10

 

I thought this day was somewhat difficult. I tried to apply info garnered from yesterday's posts, in particular:

I preferred to annotate differently that area: pt2 to pt3 decreasing volume.

 

That was very beneficial. Thanks cnms2 and all.

 

Comments appreciated. :)

5aa70ffbaff98_ES06-104_22_2010(5Min).thumb.jpg.33f1c4c30a4597e6d933a9011150ffad.jpg

Share this post


Link to post
Share on other sites
Hi gucci,

 

Thank you for sharing your valuable volume comparison skills.

 

I have two questions for you---

 

1. You said: you could mentally (or actually) go to a higher (slower) resolution level and compare the highlighted areas---For the 5 minutes ES chart, what's the higher (lower) resolution level you suggest to use according to your observation? Do you mean to switch to10 min,15min, 30min or 60min in this specific

example?

 

2. You said: Furthermore you can compare the transition of the black volume starting after 11:30 - 11:40 area ---The chart under discussion is rs5's which is CST. Does your 11:30 - 11:40 area correspond to Bar 24 to Bar 26? TIA

 

Hi NYCMB,

 

to 1

 

Please understand, I did not suggest any specific resolution. Furthermore I do not think this example was specific. On the contrary this example was rather elementary. Price moves from point 2 to point 3 in a non dominant fashion that is on decreasing volume. It doesn't matter what resolution you chose to compare the aforementioned areas - the volume at point 3 is decreasing.

 

to 2

 

I referred to the chart in cnms2 post, so the times in question correspond to his chart.

 

FWIW.

Share this post


Link to post
Share on other sites

I would like to share some my experience related to how gain better understanding of this method.

 

I had posted a few daily screenshots on one of the website for Russian’s traders.

 

People started asking question: “What’s this?” “What’s that?”, “Where are entrees, exits?”

 

I say Ok, I will explain it through Skype and shared screen .

 

Most common questions were:

 

- What The P/V Relationship is?

 

- What Gaussian is?

 

- What Tape is?

 

- What Traverse is?

 

- How to they become Channel?

 

- Where are points 1, 2, 3?

 

- How the Left Side of the Market becoming the Right Side?

 

- Why did you enter Long, Short, Reverse?

 

- What Formation is?

 

- Why you hold?

 

- Where Hold button is?

 

- Signal for Change? We never heard of it. Is it secret indicator?

 

And remember: I have to come up with answers in real time.

And people saw what I am doing.

And where price went after I said where it should go.

 

By doing few sessions like that I gain much better understanding and knowledge for myself.

 

My point is - try to explain what are you doing to someone, who really interested to learn this method. It will do great work for you.

 

On the other note, now I understand Spydertrader and admire his multiyear hard work to transfer knowledge to us.

 

Spydertrader,

 

Thank you!

 

Stepan

Edited by stepan7

Share this post


Link to post
Share on other sites

I received few requests from readers of this thread about teaching, sharing screens etc.

 

Just to be clear. I made few sessions for people from Russia:

 

(1) who have very poor English skills;

 

(2) or their English skills are next to nothing;

 

(3) or they don’t know English at all.

 

None of requestors is falling into any of above three categories.

 

At the end of each session I told folks to take dictionary and read this thread.

 

This thread contains more than enough information necessary.

 

All I can do for requestors just repeat the same thing - read this thread.

 

Stepan

Edited by stepan7

Share this post


Link to post
Share on other sites

I am helping a few friends learn the JHM. I think "reading the thread" is right on target as the best advice. In an effort to help myself learn more I also occaissionaly write up a summary or some other exercise. Here is a hack at describing a single fractal of tape drawing with a few items I feel need emphasis. Feeback is always welcome. If I messed up something I am always willing to make a correction or would support having it deleted.

 

Lately I have been studying Jack Hershey's material on IF1 IF2 and APA (including HVS trading). Would some of that material be appropriate here?

 

Thanks to Spyder and the community for the thread and productive interaction.

 

MK

5aa70ffc87dad_MK201004235ESSingleFractal.thumb.png.f30c550aca77c5e0cf1d3b592e6173fb.png

Share this post


Link to post
Share on other sites
... Feedback is always welcome. If I messed up something ...
Firstly, I believe your volume data contains a few errors. Compare it to rs5's.

Secondly, your pt1 for the up trend doesn't seem right.

5aa70ffc8e29b_2010-04-23volumemkvsrs5.png.ff0cd81f902fd93a4c835c52e8a18492.png

Share this post


Link to post
Share on other sites

Thanks cnms2.

 

I found a code error to explain the volume differences. Fixing that showed peaking volume and a new pt 1. Little things mean a lot!

 

MK

5aa70ffcabaa9_MK201004235ESV2.thumb.png.87a5f51fea88a78755b7dac4dd98b4e5.png

Share this post


Link to post
Share on other sites

For discussions sake, last Wednesday's chart (RS's revised example) to be correct, we're saying: pt1 to pt2 = pt2 to pt3 = pt3 to VE as far as the fractal level (tape/traverse) they are on. I have a hard time with pt2 to pt3 leg being the same level as the others. Doesn't seem like it has the same components as the others.

5aa70ffcb67b8_4-21-2010ES.thumb.png.363267b151223c5c479aca74fbbbebbf.png

Share this post


Link to post
Share on other sites
For discussions sake, last Wednesday's chart (RS's revised example) to be correct, we're saying: pt1 to pt2 = pt2 to pt3 = pt3 to VE as far as the fractal level (tape/traverse) they are on. I have a hard time with pt2 to pt3 leg being the same level as the others. Doesn't seem like it has the same components as the others.
What do you use to differentiate among fractals? What components are you talking about?

Share this post


Link to post
Share on other sites
For discussions sake, last Wednesday's chart (RS's revised example) to be correct, we're saying: pt1 to pt2 = pt2 to pt3 = pt3 to VE as far as the fractal level (tape/traverse) they are on. I have a hard time with pt2 to pt3 leg being the same level as the others. Doesn't seem like it has the same components as the others.

 

IMO, take RS5's thursday's chart, where the last portion of wednesay was revised.

Do you have what you're looking for?

Share this post


Link to post
Share on other sites
IMO, take RS5's thursday's chart, where the last portion of wednesay was revised.

Do you have what you're looking for?

 

Thanks, I see the revisions but they don't help with the 11:40 to 12:45 section (10:40 to 13:45 on the posted chart). FWIW, I have 9:50 IBGS on Friday (10:50 on the posted chart) as the new Pt1 up.

 

What do you use to differentiate among fractals? What components are you talking about?

 

Differentiating fractals: Pace level, volume peaks/troughs, and BBT/Tape breaks. On fast to extreme pace levels you might not see the BBT's, the slower pace levels is where they tend to show up.

 

Components for this example: Looking for a complete volume cycle on each leg. Also want to see increasing volume on a tape break or it's a fan with building block tapes within.

 

In summary while I can see your view, and Spyder seems to have verified it, RS's original view is what I had worked out in RT. Feels like I'm having to force the gaussian cycles to see it otherwise. 11:40 to 14:00 looks like is all non dominant 2 to 3 volume, with a full b2b 2r 2b volume cycle.

Edited by Ezzy
typo

Share this post


Link to post
Share on other sites
Lately I have been studying Jack Hershey's material on IF1 IF2 and APA (including HVS trading). Would some of that material be appropriate here?

 

 

What does " IF1 IF2 and APA (including HVS trading)" mean please?

Share this post


Link to post
Share on other sites
What does " IF1 IF2 and APA (including HVS trading)" mean please?

 

There is an if1 if 2 apa strategy report floating around someplace.

 

Here is SCT Report that picks up some of this. I will keep looking and get back here when I find it

sct.thumb.jpg.757520433ae99543ff4b4ebea99cccaf.jpg

Share this post


Link to post
Share on other sites

ahhhh ! here is one of them

 

edit: this drawing of IF1 IF2 APA was created by Bi9foot. this is not the strategy report. This is a great drawing and explains well.

 

 

now I remember Ezzy searched extensively for these docs and they did not turn up.

if1_if2_apa.png.7c7e83bb548580428a1191d3b427c583.png

Edited by TIKITRADER

Share this post


Link to post
Share on other sites

HVS = High Volatility Stall JH - Method

 

 

 

quote from Spydertrader

 

A. Hitch

As dominant traverses proceed the price change there is, at first, an almost continuous

advance. Therefore, from bar to bar, the offsets and the bar length repeat one after

another. Progress can soften after a period of time and it shows up as a momentary one

or two bar repeat. Repeat means that consecutive nearly identical bars show up. The

bars often do not have the volatility of the prior advancing bars. Volume will flag

somewhat preceding this phenomena. Then the price resumes its prior advance. The

market has momentarily caught its breath, so to speak.

 

B. Dip

Dips are like hitches only they are more pronounced, meaning that a small noticeable

retrace for one bar may occur. The corresponding volume flagging is more pronounced.

 

C. Stall

Stalls are longer hitches and the volatility may not be less than prior bars. Picture it as a

definite pause and dwell period that occurs not too close to the left fractal channel line.

Volume will oscillate somewhat by flagging and then refreshing and flagging again.

D. High Volatility Stall

This formation usually occurs near the limits of the market’s range and early in the day

when volume is brisk and the market opens somewhat near the prior day’s range. A

high volatility stall can be traded at the rate of one cycle per two bars and it can be

traded in both directions with a neutral bias. The tick length of the bars gives a

comfortable value of profit and leaves room for market fills that may not be at the limits

of the lateral values of the range of volatility in a bar.

Edited by TIKITRADER

Share this post


Link to post
Share on other sites

One of the best sections of all the threads regarding the method can be found starting September 1 2007

 

Spydertrader's Jack Hershey Futures Trading Journal

 

Flaws and Internal Formations

 

beginning about page 884

 

Edit: Attached an old chart from Spydertrader that has an HVS market around 10 to 10:30 am. Reminder . . .Chart is from past with annotations that relate to the discussions taking place at that time.

02-22-2006-es-5min.thumb.jpg.7011055c47c60bcbfdc685788c67d501.jpg

Edited by TIKITRADER

Share this post


Link to post
Share on other sites
What does " IF1 IF2 and APA (including HVS trading)" mean please?

 

TIKI hit the material I was referencing on the money. It is basically the binary logic used to keep you safe when market direction is in doubt (i.e. after a potential FTT until a new trend is verified). IF1 = prepare for a reverse as price passes the previous close against you. IF2 = reverse when price passes the previous bar's extreme against you. Once you execute IF2 or if you reverse/trade for some other reason ON THAT PARTICULAR BAR you then use APA. APA = reverse if price moves against your trade price. You can only do each action once per bar. If you wish, you can then also shift to a faster bar (5' to 1') after APA but only for the duration of the original bar. Then you use IF2 and APA for the remaining time of the original bar using the bars of the faster timeframe. The exception is HVS trading. You stay in the faster timeframe mode until HVS mode is done. Certainly more to talk about but this is a start.

 

I believe it is a part of the mechanics of using the most difficult stuff (Sequences and Signs of Change). Intriguing and harder to implement that you might expect (at least for me).

 

 

I would appreciate any feedback if I got this wrong.

 

MK

Share this post


Link to post
Share on other sites
... Differentiating fractals: Pace level, volume peaks/troughs, and BBT/Tape breaks. On fast to extreme pace levels you might not see the BBT's, the slower pace levels is where they tend to show up.

 

Components for this example: Looking for a complete volume cycle on each leg. Also want to see increasing volume on a tape break or it's a fan with building block tapes within.

 

In summary while I can see your view, and Spyder seems to have verified it, RS's original view is what I had worked out in RT. Feels like I'm having to force the gaussian cycles to see it otherwise. 11:40 to 14:00 looks like is all non dominant 2 to 3 volume, with a full b2b 2r 2b volume cycle.

At 1050 (attached chart), in real time, the blue highlight seems to show a complete (volume, price) sequence on the L2 fractal.

 

I think one difficulty arises from the fact that on the 5 minute chart at different times during the day different market fractals are observable, function of pace. So we can talk about market fractals, observable fractals, trading fractals. I believe that it is very important how we choose the trading fractal (including the sidelining fractal :) ), and it may be more important to emphasize the hierarchy of the observable fractals, than that of the market fractals. In the end we are interested in making money and not in making beautiful charts.

5aa70ffd5a960_4-21-2010ES1050.thumb.png.8409803ea6e2d589d73a4c491a14bd4d.png

Share this post


Link to post
Share on other sites
At 1050 (attached chart), in real time, the blue highlight seems to show a complete (volume, price) sequence on the L2 fractal.

 

I think one difficulty arises from the fact that on the 5 minute chart at different times during the day different market fractals are observable, function of pace. So we can talk about market fractals, observable fractals, trading fractals. I believe that it is very important how we choose the trading fractal (including the sidelining fractal :) ), and it may be more important to emphasize the hierarchy of the observable fractals, than that of the market fractals. In the end we are interested in making money and not in making beautiful charts.

 

I think observable is the key word here. Trying to stick to what is observable on the 5min. There is a lot more to see on each leg on the YM 2min or a 1min ES. For example if you go to a faster time frame, the retraces on the other legs have a full volume cycle. That was missing here (and I can see that on the 5min) which led me to believe it was on a different level.

 

Agree, making money is the end game from all the time spent learning. Thanks for your comments.

 

Regards - EZ

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.

  • Topics

  • Posts

    • No one can specify that who can become successful in what time, it all depends on the skills you have applied and know;edge you have implied while trading.
    • On this Forum by Introducing yourself new beginner will get many things to learn, good links and videos also. Forex4you is a platform where you can learn about Forex as well as Demo account trading.
    • Open a new futures brokerage account by April 30th with a NinjaTrader Lifetime license & receive: Commission-Free Micro trading in May $50 margins on Micros Access to the most powerful version of NinjaTrader Free platform upgrades for life! Simply open & fund your new account in April with as little as $400 & purchase a Lifetime license. You will then receive a rebate for commissions on all Micro futures trades placed from May 1 – May 31st.* Open Futures Account A NinjaTrader Lifetime license provide access to all premium features including Chart Trader, OCO orders, Order Flow +, and more. *Program Requirements: Account must be funded by April 30th, 2020 with $400 minimum A new NinjaTrader Lifetime license ($1099) must be purchased by April 30th, 2020 Standard exchange, NFA and routing fees still apply A commission rebate will be applied to the account holder’s balance for all May Micro trades 2nd accounts for current NinjaTrader Brokerage account owners not eligible for rebates Futures and Forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. View Full Risk Disclosure.
    • Date : 1st April 2020. All eyes on Commodity Currencies.Asian stock markets are lower, while European and US equity index futures are showing losses of around 3%. Data out of Asia today were nothing short of dismal, showing manufacturing contracting across most of the region, highlighting the economic toll that virus-containing measures are having.The main concern remains that the massive global stimulus measures simply won’t be fully effective while many economies remain in a state of lockdown of as-yet unknown duration.Commodity currencies have come under pressure as the winds of risk aversion picked up again.The Canadian dollar was the main loser so far today , while it has remained under pressure with oil prices sinking back toward major-trend lows as crude storage facilities burst at the seems from excessive supplies.USDCAD has gained up nearly 2% in making a 1.4230 high, though the pair so far has remained below yesterday’s peak at 1.4350. This is due to the fact that crude prices are down by over 65% year-to-date. This level of price decline in Canada’s principal export, while it sustains, marks a significant deterioration in the Canadian economy’s terms of trade. Given the glut of crude flooding the market, and given that supply is increasing as demand will remain weak for a historically protracted amount of time, Canadian Dollar is anticipated to remain apt to underperformance. The likes of the Norwegian krona, which like the Canadian dollar is an oil-price correlator, and many developing world currencies have also come under pressure.From the technical perspective, USDCAD overall outlook remains positive with asset holding above all three daily SMAs since January, and momentum indicators positively configured. RSI at 59 recovery from a pullback last week, Stochastic rebound from oversold territory and MACD presents some decline of the bullish momentum but holds well above 0. That said, USDCAD revisiting its recent 17-year high at 1.4669 seems likely before long.Intraday meanwhile, the rebound of USDCAD looks to run out of steam, however only a move below 1.4050 could suggest a reverse of the outlook.AUDUSD tipped over 1% lower in making a 5-day low at 0.6064 amid weaker Gold prices (end-of-quarter flows). The Aussie still remains comfortably above the 17-year low that was seen on March 19th at 0.5507. The Kiwi dollar has also taken a tumble.Always trade with strict risk management. Your capital is the single most important aspect of your trading business.Please note that times displayed based on local time zone and are from time of writing this report.Click HERE to access the full HotForex Economic calendar.Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!Click HERE to READ more Market news. Stuart Cowell Head Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Date : 31st March 2020. Dead cat Bounce!Dead cat Bounce! A new term? Not really but definitely something that we haven’t seen for more than a generation.In general, investors throughout the years invented this term as a follow up to a market free fall. By definition, the “Dead cat Bounce” is simply a market phenomenon that translates into temporary small and short-lived rebounds of an asset’s price within a prolonged period of downside. This term is based on the idiom that “even a dead cat will bounce if it falls far enough and fast enough“. Hence in the financial market it is said that even if an asset falls with a considerable speed, it would rebound as even a dead cat would bounce. However, every time there is a rebound, the overall initial trend is then anticipated to resume, bringing the bearish influence back into play.In addition, the phenomenon can occur in any market, yet is particularly prevalent in equity markets. It is often the case that it is considered a continuation pattern.Why are we raising this topic now? This March, was the first time after Black Monday 1987 that we have seen the worst intraday selloffs in stock markets. Since February 20th, the stock market entered an aggressive bear market with a few days of an absolute rally. An example was the 13th of March in which the stock market roared back in the biggest one-day rally since 2008 after its worst single-day crash in 33 years just a day before. This is the classic dead cat bounce.If you closely observe stock market behaviour in March you will notice that there is a dramatic decline, with a number of days when the market reversed some of its losses, but failed to take the bait, and eventually fell back down again. This is a situation of portfolio managers wanting to sell some of their positions and when they see some strength in the market, decided to unload. This is what we call a “dead cat bounce” after it falls from high enough. Remember however that not every correction/reversal can be interpreted as a dead cat bounce.Theoretically this term is defined as the term in which,   A stock in a severe steep decline has a sharp bounce off the lows. A small upward price movement in a bear market after which the market continues to fall. Unfortunately, I need to highlight that there is not an easy way to determine in advance whether an upwards movement is a dead cat bounce which will eventually reverse quickly or whether it is a trend reversal. There is nothing easy in identifying the bottom of the market. However to a large extent a dead cat bounce is a retracement, in comparison to a reversal, i.e. it is temporary.Dead cat bounce as a technical analysis tool and more precisely as a continuation pattern could be tradable from short-term or medium term traders. Having explained this phenomenon, a follow-up article will elaborate on how market participants can trade a dead cat bounce.Always trade with strict risk management. Your capital is the single most important aspect of your trading business.Please note that times displayed based on local time zone and are from time of writing this report.Click HERE to access the full HotForex Economic calendar.Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!Click HERE to READ more Market news. Andria Pichidi Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.