Iterative Refinement

After reading this several times, I changed the words "Large" to "Increasing" and "Small" to "Decreasing", and added "or lateral movement"..........

 

This question is a follow up to a recent P/V discussion and I appreciate any comments or feedback.
The chart below is from this post: http://www.elitetrader.com/vb/showthread.php?s=&postid=1877915#post1877915

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1877915>

This comment:

from:
http://www.elitetrader.com/vb/showthread.php?s=&postid=1878001#post1878001

refers to 11:30 bar on the above chart highlighted in yellow. It is an increasing red volume bar that serves as a pt3 in a teal(?not sure about the color) less steeper up channel.

The chart below is Spydertrader’s answer to my attempt to figure out how P/V relationship operates on 1 minute bars for that period

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1878666>

He added red down channel, correct gaussians and highlighted in yellow 11:33 bar that breaks RTL on increasing black volume. The arrows are remainders from the original question and on this chart they have no meaning.

Looking at it I see:
1. price moving in a pt3 channel creating an FTT (FT3) on 11:32 bar,
2. breaking out of down channel on increasing volume and
3. continuing to go higher on increasing black volume
4. that 5 minute bar started with red dominant volume and after the BO on increased volume, the black became dominant
5. the change occurred inside the 5 min bar, which started with red being dominant and ended with black volume being dominant., which is one of the things that happen inside an IBGS bar

That is all I can see. It’s quite clear and it makes perfect sense to me.

The verbal rendition of P,V relation from Tomorrow’s Paper Today
http://www.elitetrader.com/vb/attachment.php?s=&postid=1468195

if Volume is Up then Price will continue its trend,
if Volume is Down then Price will change its trend

My attempt to apply this to 11:31, 11:32 and 11:33 bars results in confusion.
a. 11:32 bar shows price improvement compared to 11:31 bar.
b. It made lower low and it closed lower.
c. Since 11:32 bar volume is higher than 11:31 bar, I would expect 11:33 bar to continue, however it changes the direction and closes higher.

Again applying the verbal rendition to 11:33, 11:34 and 11:35 bars I get:
d. 11:34 bar shows price improvement compared to 11:33 bar.
e. It closed higher.
f. Since 11:34 bar volume is lower than 11:33 bar, I would expect 11:35 bar to change the direction, however it continues and closes higher.

Since these two examples show the result that is the oposite of what Jokari Window tells me, I conclude that my interpretation and application of this concept is incorrect. I can not understand why. I would greatly appreciate any feedback.

 

Please post this one minute chart which causes the confusion.

- Spydertrader

 

... and you only needed 8 words.

- Spydertrader

 

zoom in of the same

 

Looking for JASO to BO of the orange channel today. Got long earlier from what I believed to be an FTT.

Comments welcome.

 

Cool......

 

Unfortunately, the 1 minute doesn't show everything in a clear and concise fashion. Unless you can drop to a lower fractal (15 second chart), we will have to walk through this step by step - mentally splitting the bars.

How does Price move higher in a down channel? Specifically, how does Price move from the Low to the Close of the 11:32 bar? Can Price ever move higher on red (selling) Volume?

What distance does Price travel from High to Low of the 11:32 bar? What direction? What color Volume caused Price to move in that direction?

Now compare the two scenarios described. Which description traveled the least?

What do you know about the Price - Volume Relationship (See the 8 word quote)?

Now, put the pieces together.

What must have taken place within the 11:32 AM bar? Can you 'see' it now?

- Spydertrader

 

Sorry wrong date on 30 sec post

edit: Tried to gather that data but no luck.