Where technical analysis meets programming,
a behind the scenes look at the studies that
help find winning trades, and the psycology
to keep you in the game long enouph to take
advantage of those life changing trades to come.
I AM THE JELLO
Repeat after me... "I may never hold dominion over great men but I shall forever remain master over this one!" These are words every daytrader, or anyone for that matter who wants to take control of their future, needs to understand and live by. I have had many occupations in my 40 plus years, but daytrading and studying how markets work have been the most rewarding, and one i plan on doing for the rest of my life. it does not matter how old you are, as long as you have an internet connection, a good trading platform, a good set of commission rates, you can make a living doing this. unlike working for the man, or starting your own business, one principle remains a constant... cash in and cash out. the problem in my view, is the cost axssociated with just going to a day job, is and can be very costly. while there tends to be security showing up for a 9-5, it is not without risk. risk it very hard to control when you put the fate of your lively hood in the hands of others and the actions of others that you very little control over. I cant name one firm or business that offers a retirement plan that once you put your 20 years in will still be around in the next 20 years, yes of course you can always move your 401k to the next place of employment, but so many unforseen factors can force you to eat into that savings at any given time, with or without your consent. in addition, consider the cost of just going to work each week, add up the fuel costs, the lunch budget, the clothing expence, and the - "it's your turn to buy lunch" aspects of just walking out the door every day to go put everything you have into making someone else get richer while you get only the expectation that one day you might just get that raise or promotion, and on the way home you get broadsided by a texting teen, putting your car out of commission, and god forbid your life at risk. Now what, you need to rent a car, insurance goes up, and you've missed a day or a few days of work putting all the pieces back together. What a horrible existence, and one we have all done because as some point we were all conditioned to believe that trading in the stock market is too risky an endevour to bet our future on. I call bullshit on that philosophy. One further observation, say you want to go into business for your self, have you considered the risks involved with opening, funding, and managing a business? Once again, way too many variables for me to consider that a smart investment for my future. The point im trying to make here at the heart of all of this is everything we do in life involves risk, but a well managed plan and defining your goals and learning to become an active daytrader in the big scheme of things offers a lot less risk than the forementioned.
Jello Theory
Jello Theory, is a collection of ideas, observations, and a mix of strategies on how to interpret the following studies which are all largely based on volume weighted average prices across different aggregated time periods. The main purpose of these studies, is to identify the current trading range, in order to execute suitable entries and exits by clearly defining the next targeted support or resistance level while maintaining the range break level as a defined stop. One key signature of these studies is that they provide a visual representation of directional momentum in relation to key pivot point signatures expressed as support and resistance levels on the chart. It is my opinion that price discovery in the absence of buying and selling pressure will always revert to the daily mean or equilibrium price which is defined as VWAP.
Jello Strategy
Lather... Rinse... Repeat... We here this phrase all the time, and when something works why would you not keep doing it when the results are consistent. Trading requires a strategy, and once you nail one down keep using it and learn how to profit from it. Rules base trading is the only way you can become profitable in this business. Like any business you need a plan with specific goals and a roadmap to achieve the desired results you want. my strategy is simple, and up until recently I was like a lot of traders trying to find something that would give me an edge, and once i found it, a light went off, and I thought to my self BOOM THATS IT! For me it was identifying specific price levels that would, with a high probability rate, retrace to predefined levels. These specific target levels are price discovery derived periodicity based Vwap Levels.
Building A Method
Lather... Rinse... Repeat... We here this phrase all the time, and when something works why would you not keep doing it when the results are consistent. Trading requires a strategy, and once you nail one down keep using it and learn how to profit from it. Rules base trading is the only way you can become profitable in this business. Like any business you need a plan with specific goals and a roadmap to achieve the desired results you want. my strategy is simple, and up until recently I was like a lot of traders trying to find something that would give me an edge, and once i found it, a light went off, and I thought to my self BOOM THATS IT! For me it was identifying specific price levels that would, with a high probability rate, retrace to predefined levels. These specific target levels are deviations from VWAP the volume weighted average price of a stock, and depending on the periocity revese to these preveously deturmined levels and considering the overal momentum of the market and the trades tend to work close to 85% of the time.
Building A Method
In some circles the notion of entering or exiting your entire position all at once could be considered arrogant,
and what is meant by this is that by entering or exiting you entire position all at once your assumming that you have
a greater understanding of exactly where and when the market decides price discovery. While you may have a great
understanding of the ebb and flo of the market or any underlying particular instrument, it is seen to be foolish
to approach a trade in this way. The Idea of paying for you stop comes out of this reasoning, in that if you take
a small position upfront mitigating your initial risk, and letting the market prove to you that your entry theory
was correct, once the trade is in your favor it is much easier to decide if you want to increase your size thus
adding to your position. In the case that the trade is working in your favor, it is always best to take some off
when a predeturmined target has been reached. lets say you are in a trade thats going in your favor, and you have
1000 shares, after of course your entry feeler lot, say 300 shares, and then building it up to the 1000 mark. after
acheiving say a 20 cent move your now up $200 and decide to take off 50% right away, what you now have is a net of
$100 and if the stock pulls back to your entry point you can still exit with a profit at unchanged, and give you that
$100 breathing room below your entry price.
Make A Big Splash
It takes balls to trade this market and size does matter!
Choosing A Pattern
It takes balls to trade this market and size does matter!
Committing To Muscle Memory
It takes balls to trade this market and size does matter!
Managing The Reptile Within
It takes balls to trade this market and size does matter!
Risk On Risk Off
It takes balls to trade this market and size does matter!
The Calculus Problem
It takes balls to trade this market and size does matter!
Price Discovery
It takes balls to trade this market and size does matter!
Size Matters
It takes balls to trade this market and size does matter!
Late And Right Early And Wrong
It takes balls to trade this market and size does matter!
When To Sit On You Hands
It takes balls to trade this market and size does matter!
Stop Hunter Programs
It takes balls to trade this market and size does matter!
The Herd Didn't Get The Message
It takes balls to trade this market and size does matter!
Inverse Potentials
It takes balls to trade this market and size does matter!
Navigating The Chop
It takes balls to trade this market and size does matter!
Anal-Heist VS Anal Cysts
It takes balls to trade this market and size does matter!
No Holding Overnights
It takes balls to trade this market and size does matter!
Reverse Engineering The Algos
It takes balls to trade this market and size does matter!
What Time Is It?
It takes balls to trade this market and size does matter!
Base Hits
It takes balls to trade this market and size does matter!
Taking A Loss Is A Winning Strategy
It takes balls to trade this market and size does matter!
Big Size On The Box
It takes balls to trade this market and size does matter!
The Short And The Long Of It
It takes balls to trade this market and size does matter!
Never Go Broke By Taking Profits
It takes balls to trade this market and size does matter!
Paying For Your Stop
In some circles the notion of entering or exiting your entire position all at once could be considered arrogant, and what is meant by this is that by entering or exiting you entire position all at once your assumming that you have a greater understanding of exactly where and when the market decides price discovery. While you may have a great understanding of the ebb and flo of the market or any underlying particular instrument, it is seen to be foolish to approach a trade in this way. The Idea of paying for you stop comes out of this reasoning, in that if you take a small position upfront mitigating your initial risk, and letting the market prove to you that your entry theory was correct, once the trade is in your favor it is much easier to decide if you want to increase your size thus adding to your position. In the case that the trade is working in your favor, it is always best to take some off when a predeturmined target has been reached. lets say you are in a trade thats going in your favor, and you have 1000 shares, after of course your entry feeler lot, say 300 shares, and then building it up to the 1000 mark. after acheiving say a 20 cent move your now up $200 and decide to take off 50% right away, what you now have is a net of $100 and if the stock pulls back to your entry point you can still exit with a profit at unchanged, and give you that $100 breathing room below your entry price.
It's Just A Symbol And A Price
It takes balls to trade this market and size does matter!
Fade To Gap
In the Metallica song Fade to black, one lyric stands out the most to express how to handle gap ups or gap downs... "Nothing is real but pain now". under standing the psycology behind what happens when a stock is gapped up or gapped down, could be considerered a very UN-INTUITIVE thing. condider if you were invested in XYZ and had been holding overnight or even for sometime and you have n=been wanting to exit your position, a considerable gap up would present the opportunity for you to get out of that position with a potentially great gain, or at the very least make you whole again in the event you were a recent "bagholder". a gap up is meant to be faded while it may only result in a short lived move down to some sort of price support or price discovery on the day, specifically off of a morning move, it makes for a great short lived trade to take advantage of while the rest of the herd is left scratching their heads as to why its selling off. this is an especially attractive type of set up during earnings season, while volatility is at it's peak and all eyes are looking to intensify the volume potential.
Motto
It takes balls to trade this market and size does matter!
Montra
"I may never hold dominion over great men but I shall forever remain master over this one!"
Jello Theory
Jello Theory, is a collection of ideas, observations, and a mix of strategies on how to interpret the following studies which are all largely based on volume weighted average prices across different aggregated time periods. The main purpose of these studies, is to identify the current trading range, in order to execute suitable entries and exits by clearly defining the next targeted support or resistance level while maintaining the range break level as a defined stop. One key signature of these studies is that they provide a visual representation of directional momentum in relation to key pivot point signatures expressed as support and resistance levels on the chart. It is my opinion that price discovery in the absence of buying and selling pressure will always revert to the daily mean or equilibrium price which is defined as VWAP.
Jello Strategy
Lather... Rinse... Repeat... We here this phrase all the time, and when something works why would you not keep doing it when the results are consistent. Trading requires a strategy, and once you nail one down keep using it and learn how to profit from it. Rules base trading is the only way you can become profitable in this business. Like any business you need a plan with specific goals and a roadmap to achieve the desired results you want. my strategy is simple, and up until recently I was like a lot of traders trying to find something that would give me an edge, and once i found it, a light went off, and I thought to my self BOOM THATS IT! For me it was identifying specific price levels that would, with a high probability rate, retrace to predefined levels. These specific target levels are deviations from VWAP the volume weighted average price of a stock, and depending on the periocity revese to these preveously deturmined levels and considering the overal momentum of the market and the trades tend to work close to 85% of the time.
I AM THE JELLO
Repeat after me... "I may never hold dominion over great men but I shall forever remain master over this one!" These are words every daytrader, or anyone for that matter who wants to take control of their future, needs to understand and live by. I have had many occupations in my 40 plus years, but daytrading and studying how markets work have been the most rewarding, and one i plan on doing for the rest of my life. it does not matter how old you are, as long as you have an internet connection, a good trading platform, a good set of commission rates, you can make a living doing this. unlike working for the man, or starting your own business, one principle remains a constant... cash in and cash out. the problem in my view, is the cost axssociated with just going to a day job, is and can be very costly. while there tends to be security showing up for a 9-5, it is not without risk. risk it very hard to control when you put the fate of your lively hood in the hands of others and the actions of others that you very little control over. I cant name one firm or business that offers a retirement plan that once you put your 20 years in will still be around in the next 20 years, yes of course you can always move your 401k to the next place of employment, but so many unforseen factors can force you to eat into that savings at any given time, with or without your consent. in addition, consider the cost of just going to work each week, add up the fuel costs, the lunch budget, the clothing expence, and the - "it's your turn to buy lunch" aspects of just walking out the door every day to go put everything you have into making someone else get richer while you get only the expectation that one day you might just get that raise or promotion, and on the way home you get broadsided by a texting teen, putting your car out of commission, and god forbid your life at risk. Now what, you need to rent a car, insurance goes up, and you've missed a day or a few days of work putting all the pieces back together. What a horrible existence, and one we have all done because as some point we were all conditioned to believe that trading in the stock market is too risky an endevour to bet our future on. I call bullshit on that philosophy. One further observation, say you want to go into business for your self, have you considered the risks involved with opening, funding, and managing a business? Once again, way too many variables for me to consider that a smart investment for my future. The point im trying to make here at the heart of all of this is everything we do in life involves risk, but a well managed plan and defining your goals and learning to become an active daytrader in the big scheme of things offers a lot less risk than the forementioned.
The JelloZone Study
The JelloZone Study is a combination of volume weighted average price targets designed to provide on the fly support and resistance levels
VWAP Defined
VWAP is defined as the Volume Weighted Average price for a specific periocity.
(((H+L+C)/3)*V)/V
Understanding that Vwap represents the price at which an equalibrium can be found with respect to the price in which it is currently trading at provides a base or mean for which the price will gravitate to in the absence of momentum.
VWAP Studies
VWAP Studies are designed to locate reversal target ranges based on a standard deviation model. unlike a true standard deviation these reversal targets are derived by finding the average between the intraday vwap and the multiday vwap. price action dictates these ranges, and depending on the position of the vwap and Multiday vwap lines is is easy to discern whether or not the product should be bought or shorted. I call these convergence and divergence events. These events are usually identified when a one indicator crossed above or below another and idicates a short lived retracement followed by a move
Study Codes and Sessions
All studies include a one on one implementation session that ranges from 1 to 2 hours. We'll cover the basics of how to set up your charts and create a new study using one of the selected studies below, followed by a detailed explanation of what each element does and how to use each feature to augment your own trading strategy.
Orders and Session Process
The process is simple, once you make your purchase, I will follow up with an email providing a link to a file where you will have access to the study codes we will be implementing during our session and set a time for us to meet. These sessions are usually provided using Skype. I use skype to screen share so you can see step by step how the process works from begining to end.
ThinkScript Implementation
The studies below are developed using ThinkScript and are for implementation on the ThinkorSwim platform. Some elements of these studies include predefined scripts that can be obtained and implemented directly from the study editor on the platform, in which case during our implementation session, these scripts will be added to the study and then modified to provide the desired context of the study strategy.
Disclaimer
*These Studies are provided as is and are not intended to indicate a buy or sell recommendation of any kind. By purchasing any study or implementation session you understand and agree that the product or service provided is for the sole purpose of deturmining the volume weighted price levels for a given periocity, and any action you take or any trades you make based on these identified levels are at your sole discression. I am not a financial advisor, nor am I holding myself out to be. before acting on any trades ideas expressed or derived from this forumn, information stated, or product, please consult the advice of your own personal financial advisor.
