Cross referencing dawned on me today

[MR]

Technical Analysis Topic:

CONCEPT OF CROSS REFERENCING


Let's talk about the concept of cross-referencing, or analyzing one time frame
with another time frame to compare and contrast trading possibilities. We will
illustrate this concept with a simple analysis of a European Futures contract,
Dec 03 EURIBOR, trading on LIFFE.

When you start cross-referencing your analysis start with a higher time frame.
Work lower in time, downward in direction. Never start analysis from a lower
time frame and then work upward in direction! Doing so can create more
potential for mistakes and add to chart confusion.

What time frame to start with can be open for debate? I always start any analysis
with a monthly chart. Sometimes it is only a glance, but when done will reissue the
chart to a weekly time frame, reapplying tools/studies. When the weekly work is
completed will then reissue the chart to a daily time frame. The analysis continues.
Finally we enter a cross-referencing phase that could find any combination of
variable time frames being analyzed.

We are not trading the monthly. We are just using that time frame to best define the
previous long-term historical price perspective. We observe where are previous price
pivot areas located, and where the major high and low are located. We check out
retracement and possible wave relationships to identify if they conformed in the past.
If they did it serves as an indication of the future potential performance ability.

Move [re-issue now] the monthly chart to a weekly chart time frame.

Continuing to reapply weekly studies with the monthly analysis adds further insights
into the combined support and resistance areas.

Move [re-issue now] the weekly chart to a daily time frame. Apply more analysis to this
daily chart. This new daily work builds further on the monthly and weekly support and
resistance understanding. Each new layer of analysis adds greater clarity to the trading
potentials, and possible risks we can better anticipate now as close in on our target
trading time frame.

Move [re-issue now] the daily chart to a variable time frame. Normally we instinctively
check out the hourly variable time frame next, but what to do when the hourly time frame
does not transfer well Elliott wave count or other technical analysis synergies?

Here is something you may not hear from others. If you are attempting to cross-reference
directly a daily to hourly chart and there is confusion, consider adding intermediary variable
time frames. When I wish to do a complete cross-referenced analysis I review any of the
following time frames: M, W, D, 480, 240, 180, 120, 90, 60, 45, 30, 15, 5, 3, or 1 minute chart.

This is really only a sample illustration of what the concept of cross-referencing is about.
It is quick example of how cross-referencing different time frames together can help you
better interpret a possible trading opportunity coming your way.

[esignal73]

Cross referencing dawned on me today

I daytrade emini s&p only, and a relatively new user. I repeatedly read Marc's cross referencing the charts and did not understand them very well. Today I got the whole picture. I typically use 3 min time frame, and since this morning I was under the impression that we are in down wave five in 3 minute and I took the trade at 10:40 AM ( Just in case if somebody wants to take a look) on the way down at the cross of dma channel without looking at higher time frames, and guess what I lost three points. After the loss I reviewed 5, 7, 15 min charts which were showing the end of wave 4 on the way up. I wish I had a look prior the trade. I think this group has excellent people who are willing to help others. My 2nd lesson is you can not learn daytrade with advanced get in matter of few days. It takes patience, lot of reading and dedication. I am certain it is achievable. Cross referencing and web levels should be on top of the decision tree prior to the trade. Any comments Marc?

[MR]

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Originally posted by esignal73 ... I repeatedly read Marc's cross referencing the charts and did not understand them very well. Today I got the whole picture.... I think this group has excellent people who are willing to help others. My 2nd lesson is you can not learn daytrade with advanced get in matter of few days. It takes patience, lot of reading and dedication. I am certain it is achievable. Cross referencing and web levels should be on top of the decision tree prior to the trade. Any comments Marc?

Hi esignal73,

You summed up my feelings very well, as I have helped a great many people over the years better master Advanced GET-- and trading for that matter-- and cross referencing is something I preach all the time as a key to greater success.

Forgive me for being philosophical, but there are relationships to everything. For a trader the concept of cross referencing helps us better understand those relationships. It offers insights into the course and direction a market has gone and could possibly go in the short, near and long term future. The saying is, "history repeats itself," and for a technical analyst we believe so do price movements.

TJ's Web is only one of the many tools available in eSignal software designed to help take us to a higher level of trading success.

Let me try to explain my take on this with a real-life example.

My older brother ran away when we were kids. He hopped a train and ended up three states away in Delaware. He didn't know where the train was going, he just saw an opportunity and jumped at it, so to speak. He didn't care about, nor did he measure the possible consequences of his actions. When he got to the end of the line, he didn't have a plan or stategy. He didn't even know where he was, at first, or how to continue his journey. He ended up calling dad and begging for help.

We traders tend to sometimes act that way. We see some action and try to hop aboard. We don't know where it has come from, nor where it might be going. We just want to participate and be in the market.

I am the opposite of my brother. It took me nine years to earn a college degree; but I knew what I wanted, where I wanted to go, how I was going to achieve it, was willing to pay the price for this success, and was patient enough to see it to through to completion. When dealing with the small details I never lost sight of the bigger picture.

That is the basic essense of learning how to succeed using the concept of cross reference when trading an e-mini S&P, or succeeding with anything in life for that matter.

When we trade we all need a good roadmap. Some times we need only a local map, and sometimes we need a world view.

When I want to visit you in the other part of our country does it make sense for me to only look at a Summit county or state of Ohio map (where I live) when say you live in Denver? Does it make sense for me to just hop on a westbound train in hopes it will stop in Colorado, or at least get close to it?

Cross referencing is your road map. It is the historical point of reference. It is a technique that better clarifies smaller details within a bigger picture frame of reference.

Cross referencing isn't a guarantee you are not going to occasionally get lost along the way, or make poor quick decisions, or face a flat tire or mechanical problem along the way. It does mean you should have improved or better odds of completing the journey. If you do not complete the journey as expected you should still be able to get much further than you would without a plan, purpose or direction.

One reason why I mention this analogy is because we are taking a vacation out west next August and we are already planning for all the details, and trying a year in advance to prepare for all the unforseen obsticals along the way. We are trying to develop realistic expectations, and so forth. We are doing all this work because we not only want to get where we want to go, but we also want to return safely and with a little money left over to get home.

One more story before I end here. I have only told this to a couple people, but it is totally true. I left TTI employment for a few years so I could grow in money management experience. When I returned one of the first persons I helped was a new EOD Advanced GET customer. He bought our program because he had watched his friend for over a year use AGET very successfully. This gentleman told me his friend paper-traded AGET for a year. He studied and learned everything he could about the program. This man's friend paper traded the only market he was interested in, Pork Bellies. (My question was, why? Bellies is a very tough, illiquid market.) When this man was comfortable, was ready to trade, he became extremely successful his friend told me. He was successful enough his friend bought the program and wanted to give it a try too. (Now the incredible part of this story I am not sharing with you-- how much money he said his friend made... lets just say the man was successful once he was comfortable with a plan of action, the nuances of AGET, and a market he knew very well.)

I was always impressed with this. An actual user who had a realistic plan. He didn't just take others ideas and follow them blindly, but he allowed enough time to observe for himself how to best understand that one market and observe ways to best trade it successfully for his personal style and interest. Consequently he became a success with Advanced GET features.

Cross referencing works! Every trader who wants to succeed will not be wasting time investing in trying to figure out how to master it for their trading style.

I apologize for this being a long reply, but sometimes brevity is not always the best answer. I will continue to do my best to help you and others see ways we can all cross reference toward greater success. I apologize I don't have time today to do a sample cross reference ES example, but maybe someone else can? If I can in the near future, I will try.

Take care, and I truly hope all this helps. Thanks for sharing your learning experience insights today.

[svemuri]

Marc
Thank you for sharing wonderful insights

Also Thank you very much for your commitment and hardwork in trying to make us better traders.

After working with GET and other tools for over two years I realized that
Trading is not just simple Technical Analysis

It is about organizing our self, Having plan for trading like a road map

The story you shared about your brother is so true, I did that mistake so many times
with trading. In the end realized I don't know where to go. You gave really great Example and

Will try to remember this before placing a trade so it will keep me in check just in case I don't have a Plan!!!

You mentioned something about being phylosophical, It appears to me that
Trading and Phylosophy are very close.
In both you need to be content (Keep your greed in check)
In both you need to be humble (Keep your Ego in check and Donot argue with Market)
In both you follow the master (I mean In trading your master is your Plan)

The more I think about the more similarities I find

I saved your post on this for my future reference, It is very good
You are such a nice person I want to meet you some time. don't know when we
get the oppertunity ?

I want to share my story too. Short one !!!
I atteneded the GET 2 day intermediate training in LA, Met a person there
that trade futures. He is totally different person.
He says he trades well and makes lot of money. Like every one else I want to
get close to him to learn the trick to make money

During the talk he said he has a friend that trades stocks, that person made a 5 point
trading plan and making lot of money. My next question would be "Can you
give me the system" ?

The point blank reply was NO, You work your own system that works for you.
Work hard understand indicators, do paper trading and check what is working
for you ?

At that time I was sad that he did not share his system but over time I
realized that I need to have my own system and system becomes my own only when I
test it myself


Finally I would like to take oppertunity to thank you one more time

Like many other taders I attended many trding seminars, read lot of books. But Iearned the most from your posts,

which I used to follow your posts right from the "TRADER's OUTLOOK" and Now to Esignal bulletin board

No where else I had seen a person sharing like you, Over the top you also
want us be succuessful

I always don't have enough word to say Thank you , Thank you so much Marc ............


Kind Regards

Sreeni

[georgeace]

Hi Marc,

I just read your story on cross referencing. What a fantastic story - stories indeed.

I believe you have a lot to share. Let those of us who have lots to learn, listen, as you continue to share your wisdom and experience.

Take care and good courage for the day

Cheers,

GEORGE EGGBERRY

[MR]

From the bottom of my heart I would like to thank you both for your kind words! It is a real encouragement to know I am helping someone out there. Thanks again, best wishes, hope you all have a great weekend!

[ronscot]

THANK YOU MARC

Marc .. just want to say thank you for all of the posts that you do .. it is the 1 thing that has helped me the most .. without these, I would be in a daze .. you posts are very clear and easy to understand and help me with some of the questions that I have .. I have been telling all of my optionetics/Get users about it and I know that these have helped them also .. I have to admit that these posts have made a big difference and have provided encouragement to keep me in the game .. MARC - you are the BEST ... thank you .. thank you.. thank you !!!!

[MR]

Thank you all for your very positive feedback! It makes all my hard work worth it to know I am meeting needs and helping make other's lives better. For that I am deeply grateful and will continue to do my very best to assist you all in your trading needs. Very sincerely, Marc

[fabrizio]

Konichi ue

Domo arigatò gonay mash-tà, Ichi ban Marcus San.

Fabrizio

[MR]

Fabrizio, my friend,

You stumped me this time? Is this Japanese?

[fabrizio]

Yesss
Hay.!

[MR]

obrigado meu caro amigo! (Portuguese-- thank you my dear friend!)

[georgeace]

Marcus Rinehart - for all the Afrikaners out there -

Jy is the best my broer, so baie dankie vir al die mooi "tegniese analise grafieke" Ek dink dat jy die beste is, en is baie dankbaar vir jy professioneelheid (sp?)

Cheers! George Eggberry - I was also going to do Zulu/Xhosa but crikey my written skills arent as good as they used to be. Thanks Marcus, youre the best

[PRH]

georgeace - hoewel ik geen afrikaner ben maar wel een vlaming nu in de states kan ik uw tekst wel lezen. beste groeten en het gaat u baie goed. Philippe

[georgeace]

Hoe gaan dit my ou maat. Luister, ek kan nie sien asof jy in Amerika bly of hoe. Maar, dis goed om jou te ontmoet, en n lekker dag vir u hoor? En dink jy nie dat Marc Rinehart die beste is nie? Ek dink so Lekker dag verder, George