Iterative Refinement

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

  1. ehorn

    ehorn

    Would we also anticipate fanning this traverse? As the morning was fanned?
     
    #6341     Aug 4, 2008
  2. 2 traverses so far:)
     
    #6342     Aug 4, 2008
  3. Instead of viewing the interaction as negative, find a positive. After all, had you not posted, you'd not have had the opportunity to receive clarification with respect to your interpretation.

    - Spydertrader
     
    #6343     Aug 4, 2008
  4. The market provided many opportunities to learn a thing or two this morning. First, the martket provided an Extreme Pace level bar on the ES 10:05 [close of] Bar - permitting the trader to recall an event on Friday on the ES 10:10 [close of] Bar. Both events showed Volume and Price breakout from Lateral Movement. Neither event showed Peak Volume. In addition, the market action this morning created a completed sequence from Point One to Point Two to Point Three on the ES 10:15 [close of] ES bar.

    The market then stepped down in pace creating some sort of Lateral in the process. Hmmmmmmmm. Completed Sequence for a Traverse followed by a Lateral. What must come next?

    The market breaks out of this lateral allowing the trader to see two examples of Peak Volume. However, as guavaman suggested, the sequences of Point One to Point Two to Point Three had not yet completed for the answer to our question, "What must come next?"

    A few bars later, the market does complete its sequences for both a channel (and the channel's second dominant traverse) and offers up the expected signal for change creating an FTT in the process (ES 11:20 and 11:25 [close of] Bars).

    Once again, the market undergoes an acceleration of Pace - this time creating an Outside Bar followed by a signal for change (Jokari Window), and once again we ask ourselves if the market has completed the sequences from Point One to Point Two to Point Three. Of course, the market has yet to do so, and as such, the trader (on The ES 5 minute Traverse Fractal) does not have permission to seek a change in market mode.

    After another accleration of Pace (perhaps, by now, those Pace lines across the Volume Pane hold a bit more meaning than before) the market transitions into pace Step Down - where once again we see the formation of a Lateral. Since The market has yet to complete the sequences from point One to point two to Point Three for this new traverse, we once again know we have a Lateral Retrace, and expect a Breakout of Price and Volume to the up side - which will then complete our sequences, and provide permission for the trader to seek a signal for change.

    HTH

    - Spydertrader
     
    #6344     Aug 4, 2008
  5. Aurum

    Aurum

    Unfortunately you (sort of) took my post out of context. I was making the point of we had 2 back to back instances of peak volume bars, and that we needed to determine why one would be a signal for change and the other would not.

    Important thing is that we are moving along the prompted path :D

    -Au
     
    #6345     Aug 4, 2008
  6. Neither one is a signal for change on a traverse fractal.
     
    #6346     Aug 4, 2008
  7. Just to be clear ...

    Not because Peak Volume doesn't signal change on a Traverse, but because the market hadn't completed its sequences from Point One to Point Two to Point Three. As such, a Traverse level trader on the 5 minute ES did not receive permission from the market to seek a change in mode.

    - Spydertrader
     
    #6347     Aug 4, 2008
  8. Tums

    Tums

    Aha... that's why annotation, even at its most basic form (ie. 1,2,3), is so important. ;-)
     
    #6348     Aug 4, 2008
  9. ehorn

    ehorn

    I still have not wrapped my noggin around sequencing coupled with traverses coupled with channels. But I think I had a big AHA! today (with the aid of your post above and this one). Def need some time to put some peices together.

    Thanks again for all the guidance.
     
    #6349     Aug 4, 2008
  10. Tums

    Tums

    just a reminder...

    20080805 2:15 ET FOMC Announcement
     
    #6350     Aug 4, 2008