Trying to make a checklist for myself of flaws. I would appreciate some feedback/ input. I'll paste it in and attach a word doc so if people feel inclined they can change/add to it and reattach it. It is a work in progress. I'd also like to mention some of the chat logs can be very helpful. Monday was very enlightening for me. http://www.elitetrader.com/ch/DigiC...t/20070611.html Spyder broke down some valuable sequences. Today also had some good stuff in it. _____________________________________ This could be embarassing but I'm sure we can improve it. Some of this is copied from Spyders comments in the chat room. ----------------------- FTT: Volume decreasing but >60% of previous bar. Price changing color to non-dominant. Look for after volume expansions or flaws. Riskier to trade the steeper the channel. FLAWS: All flaws have less volume than an FTT and are frequently followed by an FTT. Lateral price moves with price exiting the same direction it entered unless an FTT occurs. 40-60 % of the previous bar volume your brain should move to flaw instead of FTT. Dip: pullback in price on decreasing volume with larger volume bars on each side. Bowl shape price and volume. Could be 1-4 bars. Hitch: Low range and less volume than an FTT, usually opposite color of the trend and 2-3 ticks long. Stall: Similar to hitch but more intrabar volatility, Expect post price and volume to be similar to bars preceding the stall. HVS: Typically longer duration, 3-4 bars or more with decreasing volume of oscillating color. As it extends out in time all sorts of volume changes develop and it turns into a CCC. CCC: Decreasing volume and price volatility over extended period of time. ES volume below 2500, YM volume below 200-250. ------------------------------------------------------- If anyone is reviewing the chat logs, and finds some Spyder gems, I for one would find it extremely cool if you could post them here. These real time clues are pricelss, IMO.
Lost my connection around 2:45 eastern, so just finished my chart right now. Nice day in the chat room..
Are we gonna to resume DOM discussions? The month is half over and I was hoping we'd get a little more indepth about what to look for etc.
Spyder, how would you view the 10:50 ES bar? We did go slightly lower indicating red vol however we closed higher than the previous bar indicating some black. These bars confuse the absolute hell out of me and I just dont know how to view them.
This is how I saw it, hopefully Spy will not give me 50 lashes if this is not right. The 10:45 bar bounced off the LTL and price started heading down, so price direction is down at that point. THe 10:50 bar sees significantly decreasing volume, suggesting a flaw. THe next bar is opposite in color and further decreasing in volume. At this point you should be thinking HVS. Next bar is opposite in color again and lower volume yet, yep it's an HVS. Flaws are continuation, so we expect price to exit the HVS the same direction it entered, that is, going down, and that's exactly what we get. Hope that helps.
My .02. The 1045 was a reversal, by looking at ym at the same time. After the 1050 bar we see dec black and a lateral move on es, then followed by inc red vol, confirming the change to downward dom...
I have a question again about continuation or change. I'm long the FTT pink arrow. Next bar is flaw red, in from the bottom. Flaw means continuation. In this case, does continuation represent the downtrend or the not yet confirmed FTT? Opinions please? I've struggled with this concept for a while in these locations. Esteban <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1502216"">
I switched data provider and charting package and didn't trade for a few weeks cause I wanted to get used to everything. Attached is chart and trades for today (uptill 230).