Iterative Refinement

It is possible to break the Formation Boundary but not break the prior bar (second bar of a pennant) - depending on how the Pennant forms. However, if Price breaks the High or Low of the previous bar, it always breaks the formation boundary. As such, we want to see Price break the boundary and the previous bar (second bar of the pennant) High or Low. In addition, we want to see Price break the first bar of the pennant high or low - else we have a Lateral Formation.

I hope the above provided the clarification required. If not, please let me know.

- Spydertrader

 

Two pennants (from the 1/9/08 esh8 chart at the low of the day) on the 5 min and 1 min fractals. After the first one the price continues down. After the second one the price reverses up.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1746196>

 

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1746210">

 

This is a 1 min view of the B2R and B2B.

 

Does anyone have Friday's ES chart to post??

Thanks in advance.

 

Re-annotated this evening. Hope they are of some use.

 

Today, I have added the following to my Final Universe:

AVR, CSR, DBTK, HOGS, LDK, SKX, SOHU, SXE

Method: QCharts culling of AMEX, Nasdaq & NYSE stocks followed by Spydertrader's Chartscript Rank Scan 1.0

Parameters:

Price between 10-50$
65 avg. volume > 200.000
Float between 5-60 mio
Positive EPS
%Insider owned > 25%

 

Why didn't you add relative strength to your parameters?

 

As far as I know, RS culling is not possible with QCharts. If you know otherwise, please let me know