CNMS2 Questions- Constant Volume charts - 1) What level do you set the minimim volume at? 2) Using constant Volume chart PRV monitoring is impossible correct? Level1, Level2, Forest, Tree, Limb, etc. Longer Time interval TO Shorter Time Interval For clarification purposes I understand your use of the above terms to mean for example ( Doesn't have to be in the below units. But the relative relationship is important ): level 1 - weeks level 2 - days forest - Intrady Monitoring measure in minutes (30,15,...) tree - forest / any number X limb - tree / X IF YOU monitor and trade at the forest level choose a fractal where the chart channels appears to "Tape" ? IMO - You have to trade at a faster channel than the one being monitored. CHANGE/CONTINUATION MONITORING POINTS AND POTENTIAL ENTRIES - Please see attached chart. CHARTs from left to right - 1min .5pt inc 5 min 1pt inc 15 min On the 5 min (Middle chart) red arrows -I was monitoring the bar low for a short entry CHANGE SIGNAL ( NO Short Entries at these points ). Green arrows for long entry CONTINUATION SIGNAL. The lime green channel was in place and I added the green channel after the PRV and price surge of the 1130 bar. The vertical lines on the 1 min chart corresponds to the entry arrows on the 5 min chart. What I really like about the chart, at this time, is that we were at the 15 minute chart RTL.
The much lower volume "flaw like" bar after the LTL bounce is also an indication that change has taken place IMO. Ivo
I recognize the above and knowing that a change in sentiment has occurred is more important than attaching the correct label. But, how in Spyder's example does one identify the green and orange events as FTT's rather than LTL bounces? I don't see a noticable difference from the example in the snippet. Perhaps the YM chart was the key. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1626219>
This is very interesting. I have noticed indeed that when RTL breaches while volume / volatility is decreasing you can count on the channel to be widened soon. Very useful. Good moment to be out if you don't like the increased risk. regards, Ivo
1) usually 10k or 30k 2) correct, but you can observe the pace I don't have definitions for those terms, but I'd use "level 1" as first level above the "tape", then "level 2", ... "forest". At some point, Jack recommended that after entry to find the slower fractal on which you see a tape forming. Search for "tampa tape". On your charts I see an up channel forming, and a retrace to pt 3 happening, so I'd look for a long entry. I'd need a signal that the setup changed toward short before looking for a short entry.
One problem when entering a new area is that people tend to use short hand phrases. The problem is just then learning what concept to which the phrases refer. Change and continuation are short hand for 'Change at some resolution' vs 'Continuation at that same resolution'. By removing the context, a single bar could be BOTH Change AND Continuation. That is, a Change could occur at a finer resolution that indicates Continuation at a more coarse resolution. I don't believe that the problem is simply identifying Change vs Continuation, but rather if the current event means Change, it means change at what resolution? If I've stated something that's incorrect, feel free to correct me. - Talas
you are looking at the wrong bar. I'm discussing 2 bars later than the highlighted bar, i'm assuming your talking to me lol.
cnms2 Would the short CHANGE signal in this case be a B2R -> R2B Gaussian ( or if I didn't denote it properly an INC in Red PRV volume to signify a change in sentiment to SHORT) at the monitoring time interval ( which in the charts I attached was 5 minutes ) ? Thank you !