Iterative Refinement

Discussion in 'Journals' started by Spydertrader, Jan 3, 2008.

  1. Padawan

    Padawan

    Strangely, charts are missing from this page, too...
    http://www.elitetrader.com/vb/showthread.php?s=&threadid=113310&perpage=6&pagenumber=599

    I was able to find the chart Romanus posted from that day on my computer. Hope you don't mind the repost, Romanus.
     
    #3661     May 17, 2008
  2. R/R

    R/R

    thanks for posting Romanus' chart link. I also have my chart as reference but the issue is knowing exactly which channels Spyder was referring to in the post I quoted because I am having a very hard time viewing that point in time and "seeing" what he referenced.

    Specifically "Once your traverse grew to the size of a channel, you then need a traverse to 'carry' price back across to the other side."
     
    #3662     May 17, 2008
  3. Padawan

    Padawan

    Understandable. I didn't quite comprehend that, either.
     
    #3663     May 17, 2008
  4. I have attempted to reconstruct what channel and traverse may have been referred to, and the only logical explanation that I see is on this 'accident reconstruction' chart:
    http://i276.photobucket.com/albums/kk20/ROMANUS42008/ES06-085_15_20085Min.png
    I marked the traverse I suspect Spydertrader was referring to as being "widened to the Point where it then mirrored the dimensions of a channel"
    Notice how pt3 of the original traverse was moved first by the price walking out laterally with decreased volume on BO, and second time breaking the RTL on 1340 [close of] bar on increased volume and then again moving laterally. This may be what was referred to in "once your traverse grew to the size of a channel" part.
     
    #3664     May 17, 2008
  5. R/R

    R/R

    yes and you can add a short channel with pt1 at the FT3 at 13:05 that gets you across to the widened channel.
    But I don't see how what was written (literally) ties this to the 14:30 area as that was the time in question.
     
    #3665     May 17, 2008
  6. I suspect what was referred to is the notion that we begin looking for an FTT after we had VE, otherwise known as "don't expect an FTT before VE or Flaw" as in "we are unlikely to see FTT before flaw or VE" And since Ivob expecting pt3 down this suggestion is definitely logical.

    Personally, I still have not figured out how to use this expectation as it seems to contradict the anticipation on which the WMCN is built on. I expect :D it to come to me later.

    In my opinion, when 1430 [close of] broke out of the lateral formation on oncreasing red volume I saw it confirming an FTT on previous bar, which also happen to be pt3 of the green up channel (part B) which grew out of chubby tape (part A):
    http://i276.photobucket.com/albums/kk20/ROMANUS42008/ES06-085_15_20085Minzoomed.png
    The 1435, 1440 and 1445 bars [close of] proceeded to go higher on decreased black volume which is indication of
    1. retrace in the down channel (purple pt3 formation), and
    2. lateral movement
    Looked to me like we had both. What follows a retrace in a down channel is either BO or resumption of dominant movement.
    Bar 1450 [close of] going higher on increased black volume does not make things easier at all.

    a) as higher high on increased black volume it signals continuation and contradicts the view that this is a retrace of the down channel => the price resumed the dominant direction=> eliminates possibility of new dominant traverse in a purple down channel.

    b) as IBGS it signals change.

    c) previous (1445 [close of]) bar was signal of change (went higher on decreasing black volume)=> the IBGS part of the 1450 [close of] bar was the change that previous bar signaled, and after closing within the previous bar range it shows lateral movement => continuation

    The YM saves the day showing at the end of it's 1450 bar formation FBO on increased volume, signaling to go long which is continuation in the ES context.

    However, if doing this as a drill to determine a change or continuation ar the end of bar, I would not be able to determine it without YM. I am leaning towards the c) being correct answer.

    Spydertrader, if you'd be so kind, what is the correct view of the whole 1435-1450 [close of] movement, without referring to YM?
     
    #3666     May 17, 2008
  7. nkhoi

    nkhoi

    all you need is reviewing all Callmate's pics.
     
    #3667     May 17, 2008
  8. Thank you, nkhoi. What am I to look for in her pics?
     
    #3668     May 17, 2008
  9. nkhoi

    nkhoi

    QUOTE]Quote from romanus:

    the notion that we begin looking for an FTT after we had VE, .. [/QUOTE]
     
    #3669     May 17, 2008
  10. [/QUOTE]

    Cool. Thanks, nkhoi.:)
     
    #3670     May 17, 2008