Iterative Refinement

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

  1. 1535 eob down channel VE on DRV moving laterally = change, anticipating non-dominant traverse.
    1540 eob and 1545 eob both increasing black (non-dominant volume).
    Down channel FBO, but still :confused: increasing non-dominant volume in non-dominant traverse:confused:
     
    #4741     Jun 27, 2008
  2. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1974728>

    (Final Blue Traverse in place for Educational Purposes)
     
    #4742     Jun 27, 2008
  3. Thank you Avi8 for your input.

    This time, your additions were no surprise. I consciously did not label your heliotrope channel as a pt3 as I saw it more as a tape, but did see it as a traverse. Your orange channel was even steeper than the tape I already had, so didn't annotate it as I already had something very steep to guide me. Finally, the blue channel I did not annotate as it was so very close to the CO channel.

    The common thread here is this: sometimes I see an opportunity to annotate a channel, but choose not to if it seems to duplicate an existing effort (or not provide new information) and I hate it when the chart gets so full of lines that it confuses me. I can honestly say that what you drew, I was aware of. That being the case, is it legitamate for me to have chosen not to draw those?
     
    #4743     Jun 27, 2008
  4. ES U8 daily Chart June 27/ 2008



    I did not get to post a chart last evening so this is the data for that daily bar.

    June 26 daily-
    Daily bar made a LL and a LH on increasing volume and volatility.
    Low of daily bar for June 26 invalidated the FTT on June 24 of the white dominant traverse.

    Range = 39.25 points


    volume = 564,946 increase over June 25.

    Close of daily bar = 4% of the range.





    Daily data for June 27 2008:


    Daily ES bar made a LL and a LH on decreasing volume and volatility.

    This looks like change on volume and volatility, also increased volatility expansion.

    Lows today were 1272.75.Low of March 17 was 1273.
    That invalidates a larger point 3 upchannel.

    ES daily bar range = 19 points

    Volatility to previous bar = 48%

    Volume = 89% of previous bar

    Close of bar = 39% of range today
     
    #4744     Jun 27, 2008
  5. A signal for change, of course.

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1975102>
     
    #4745     Jun 28, 2008
  6. capcom

    capcom


    The blue up channel is not a valid up channel, correct? Because their is no increasing black Volume!

    Gary
     
    #4746     Jun 28, 2008
  7. ESU8 Monthly chart June 28 2008



    On the data I am using the point 3 monthly bar has increased volume confirming a point 3 down.
     
    #4747     Jun 28, 2008
  8. I wondered this too. Upon studying Spydertrader's older ES charts I found cases of pt3 channels drawn in where no inc vol occurred after the pt3 was annotated.

    I did notice that (most every time) I found this, the channel in question was a non-dom traverse of a bigger constructed channel. Also, we are all humans, and I wouldn't expect anyone to always be perfect every time with every annotation.
     
    #4748     Jun 28, 2008
  9. Tums

    Tums


    copy the chart into your Paint program... then draw some gaussians on it to find out...

    That's the best way to learn.
     
    #4749     Jun 28, 2008
  10. You've provided an excellent example of critical thinking.

    Through your research, you've narrowed down the choices to a set of possibilities numbering two. Either, one, I occasionally have difficulty differentiating between increasing and decreasing Volume (even with automated Gaussians on my chart), and as a result, need to apply more focus on the Monitoring portion of the M-A-D-A Process, or two, I chose to post the chart in question for a specific reason.

    Nicely done.

    - Spydertrader
     
    #4750     Jun 28, 2008