Iterative Refinement

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


  1. Woot. Me too.
    :D
     
    #6301     Aug 3, 2008
  2. Sorry for the confusion. My charting software failed me:D .
    The day in question is Thursday, 7/31/2008.

    14:35 eob creates pt3 in the aqua pu traverse, exits the RTL of the black down traverse on increased volume and exits RTL of the red down Channel on increased volume - moving in dominant direction UP

    14:40 eob continues higher on increased black volume creating VE - moving in dominant direction UP

    14:45 eob IBGS closing down from open on decreasing volume, beginning a retrace in aqua traverse - moving in non-dominant direction DOWN

    14:50 eob continues retrace on decreasing volume - moving in non-dominant direction DOWN

    14:55 eob continues DOWN but on increased red volume (the volume that did not come from any of the three instances where increasing non-dominant volume appears without signaling change in trend). The retrace becomes a reversal. The dominant direction now is DOWN

    15:00 eob creates FBP on increased black volume and since formation does not constitute change, we have a continuation of the dominant direction DOWN

    15:05 eob is black on decreasing volume, which is what expected from a retrace in the DOWN trend

    15:10 eob is red on increasing volume, confirming the dominant direction DOWN

    15:15 eob is black on decreasing volume, which is what is expected when
    the dominant direction DOWN

    It looks to me that dominance switched from UP to DOWN during 14:55 eob on increasing red volume.

    Is this what you were getting at?

    If so, what about the actual change signal?
     
    #6302     Aug 3, 2008
  3. Does the fact that the pennant developed in a non-dominant retrace of the aqua up traverse fits somehow in the equation? Is this what you were referring to in:

    http://www.elitetrader.com/vb/showthread.php?s=&postid=2014736#post2014736
     
    #6303     Aug 3, 2008
  4. Jander

    Jander

    #6304     Aug 3, 2008
  5. Jander

    Jander

    This seems a little off as well, increasing volume sure, but confirming dominant direction down? It was a 1 pt doji bar
     
    #6305     Aug 3, 2008
  6. You sure?

    - Spydertrader
     
    #6306     Aug 3, 2008
  7. I am trying to figure out if this is where the answer may be:
    15:10 eob made a lower low than the previous bar. It closed at the same price as opened, and opened at the same price as the close of the previous bar. But it closed lower that the previous bar open.

    On the other hand one can make a case that Jokari Window can be applied here if one considers the portion of the 15:10 eob where the price went from its low to its close as moving on increased black volume.
    :confused:
     
    #6307     Aug 3, 2008
  8. 15:10 eob as a lateral movement on increased volume signals change. Since the price traveled back from LTL to RTL the type of change one would expect here is resumption of up trend on increased black volume. But we get decreased black instead.
    ? What wasn't that ?
     
    #6308     Aug 3, 2008
  9. Aha! You now have the ability to 'see' a change in dominance which can occur within a Lateral. This might make it easier yet for you. Mentally, color the ES 15:10 [close of] bar as black. What does the next bar say now?

    - Spydertrader
     
    #6309     Aug 3, 2008
  10. Jokari window change.
     
    #6310     Aug 3, 2008