Iterative Refinement

[Padawan]

Quote from treeline:

Thanks for the compliment, ehorn. However, I missed both of the channels that Spydertrader pointed out. I can easily see the pink one, but the orange one confuses me. The orange channel's point 3 bar (12:55 EST) in the chart below appears to have the same high and same low as the previous bar. This is also what my data provider shows. I didn't realize that a valid channel could develop if there's never a lower low after Pt 3.

Perhaps Spydertrader's data provider shows a lower low on the 12:55 bar? Or perhaps I need to revise my view of what constitutes a valid channel?

Thanks for any help...

Today I stared long and hard at that red bar with the same high and low as the previous bar, wondering whether or not to draw a channel with it as the Pt3. I also wondered if it could be a ftt. I was inventing stuff by comparing the closes of the two bars when that info wasn't relevant. All the comments about that channel and gaussians are appreciated.

Regarding gaussians, I think the channel overlap is what's causing me problems. I see the corresponding gaussian overlap but don't annotate it (if you saw the very first chart I posted on ET, you'd have a general idea of what I'm talking about...please don't puke if you do see it )

 

[bi9foot]

Quote from Atari:

In an effort to improve or reinforce my MADA during lateral movement, I thought I would post my MADA and a chart snippet showing an area of lateral movement from last Thursday (4/24).
-A

Here is my MADA for the same period. I see things slightly different from what you have described.
However this is an area where I will get in trouble with way too many potential trades and would like to cut down on the trades I would take when navigating a lateral like this.

I have numbered the bars in the lateral for easy reference.

Coming into the lateral, we are potentially looking for a wider up channel.

Bar 2: Change signal to short possible point 2 and LTR (left to right) movement. Hold long position since we are anticipating pt 2->3 movement.

Bar 3: Pennant FBO on increasing black volume. Change signal to Long. However since we are long we hold. This bar will give a steeper pt 3 channel.

Bar 4: Price moves higher on decreasing volume and price stays within lateral formation confirming LTR movement.

Bar 5: IBGS decreasing volume. Price still in lateral formation. LTR movement.

Bar 6: FBO of lateral on increasing volume. Change signal to Long however we are still long so HOLD

Bar 7: Higher high on increasing volume however bar closes near the bar low. Change to Short

Bar 8: Price moves lower on increasing volume breaking the green RTL. Need increasing red on next bar to confirm BO. Hold Short

Bar 9: Pennant formation. Change signal to long. However anticipate LTR traverse to a point 3. Hold short.

Bar 10: Pennant BO on increasing volume. Possible new point 3 up. Reverse long. Need more increasing black volume on next bar.

Bar 11: We get increasing black volume however bar volatility is lower anticipate change.

Bar 12: We have the change. Possible LTR traverse. Hold Long

Bar 13: Increasing red volume and pennant BO reverse short new point 1 down.

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1905298>

 

[bi9foot]

Just to clarify. The MADA I posted above is an attempt to try and reduce the number of trades I would do through the lateral.

If I was trading Bar by Bar I would have taken the following actions (end of bar)

Reverse short bar 4
Reverse long bar 6
Reverse short bar 7
Reverse long bar 8
Reverse short bar 11

 

[Spydertrader]

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1905668>

 

[8833broc]

I was just getting ready to post my AM chart with trades. I felt I traded correctly to what I saw and I felt I was monitoring/annotating correctly. Around 1135 I had doubts and decided to visit this journal and view a decent chart.

Thank You SPyder for posting your chart of this AM !


Gold flat
orange - short
lime long

 

[romanus]

Quote from Spydertrader:

Attachment: 05011141es.gif

Thank you so much for the chart!

 

[Spydertrader]

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1905797>

 

[treeline]

Is this an acceptable alternative to Spydertrader's annotations of the 11:00 - 11:50 EST area (10:00 - 10:50 CST on my chart)? I have trouble seeing the 11:25 EST bar as having black V (on my chart this bar has a gray vertical line through it). It's an OB with a close below its open as well as below the previous bar's close.

 

[R/R]

Spyder: could you please explain why you ended the annotation of the lateral movement on the 11:45 bar instead of continuing it until there was a close outside of the boundary?

thanks in advance, Rick

edit: are you considering the 11:45 close on the boundary as "outside"?

 

[Spydertrader]

Quote from R/R:

could you please explain why you ended the annotation of the lateral movement on the 11:45 bar instead of continuing it until there was a close outside of the boundary?

With all the lines I had drawn in at the time, I kept 'grabbing' a trend line instead of the 'Lateral' annotation when attempting to 'extend' further in time. I've since had an opportunity to fix the annotation.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1905899>

Quote from R/R:

edit: are you considering the 11:45 close on the boundary as "outside"?

No. 'On the line' or inside the boundary = inside the boundary.

- Spydertrader