FerdinandAlx

ES chart including trades for Nov 30. 9.5 pts net of commissions. I decided to carryover friday's channel. I'll return to that in a later post.

In my view removing price gaps is fundamentally unsound and indefensible. The method we use is based on deduction: our fundamental assumption is that markets come into being from their rules and that from those rules we can build a functional system. Part of those rules are the limited trading hours. This presents us with a problem since the p/v sequences we use to build up a picture of the market are discontinued at some point. The removal of price gaps adresses the problem inductively since it does not follow from the market's operating rules. It attempts to present continuity in our sequences through the tinkering with price. The universal problem of induction applies here so that even if it has worked in the past there is no sound reason to assume that it will work in the future. In my view there is no way to address this problem deductively. We cannot soundly carry over yesterday's sequences and we will simply have to wait until we see new sequence being formed. We're just forced to accept that markets do not follow ideal theory and do not contain perfect nested fractals.

Before I give any feedback I have a question myself: At the end of the first sequence that you labeled there is a bar on lower volume that you've marked as SFC:JW. What do you mean by JW? You have a sound understanding of sequences. The gap down after a market holiday and the early close must be taken into account however in your anticipation of future sequences. The open and close each day are traumatic interruptions that have the effect that markets aren't perfect nested fractals. The open and the close events are traumatic in the sense that they provide market partcipants with an extra risk factor that wouldn't be there if trading hours would be continuous. Because of this interruption you can't always extrapolate the existing sequence into your anticipation analysis. The effect of this interruption is amplified by the early close and the weekend that follows. It wouldn't surprise me if friday's dominant sequence doesn't carry over at all. - Ferdinand

So, how was the convention in Las Vegas? Does anyone care to reflect?

Chart with the remaining trades made during the early afternoon. +6.25 points net. Closing down for the day now in order to attend a lecture.

Morning trades Wednesday Nov 18th '09. +3.75 points/contract net.

Hello, I'm sure most of you will remember me from Spyder's journal over at Elite Trader. Spyder PM'ed me a while ago to invite me to partake in the discussion here at Trader's Laboratory. I'm wondering if you guys keep in touch during market hours on Skype or a in chatroom. It'd be nice to have some conversation with other traders who use the same price/volume method in their trading. Ferdinand