Iterative Refinement

[Padawan]

Quote from Spydertrader:

Over the period where you defined Lateral Movement.

- Spydertrader

Volume behaved similarly and differently to other lateral movement areas I've witnessed depending on the context.

In this specific example, the lateral movement area displayed both increasing black and increasing red volume. I thought that was interesting.

 

[romanus]

Quote from Spydertrader:

Subtle differences, yet all the difference in the world.

- Spydertrader

Thank you for pointing those out! One big AHA! for today

 

[Spydertrader]

Quote from romanus:

After 1300 [close of] FBP FBO I expect to see decreasing black as price travels from pt2 to pt3. Instead increasing black PRV on 1305 [close of] bar and increasing black on 1302 YM (indicating that YM returned to dominant direction) tell me that what must come next did not, and signaling return to up trend?

The 12:58 [Close of] YM Bar signals change for the reasons mentioned, and we 'see' the 13:00 [close of] YM Bar confirm this signal for change. However, you already know the ES is moving between Point Two and Point Three. Since the YM 'cycles' 2.5 times as fast as the ES, a trader can, 1. follow the signal and trade between Points Two and Three, or, 2. Hold through Points Two and Three. At the ES [close of] 13:05 Bar, we have a BO of Lateral Movement on increasing black Volume. WMCN? More increasing black. Else we know to expect the trend to change.

However, The Ym (during this same time period ([close of] 13:04 and 13:06) we 'see' Price moving higher on decreasing black Volume followed by IBGS (or 'IF1 - depending on one's datafeed) - both of which provide signals for change.

Such an event in the current context, tells the trader to expect the Point Three Down Channel to materialize - which does on the very next [close of 13:10 ES] Bar. Price then moves lower on decreasing red Volume ([close of] ES 13:15 Bar), and since we know, decreasing dominant Volume after a Point Three signals change, the action step required becomes crystal clear. Just in case, we can also see the YM ([close of] 13:14 bar) also head lower on decreasing Volume. Clearly a signal for change.

Quote from romanus:

edit: OR after forming pt3 down channel with increasing red on 1310 [close of], 1315 [close of] goes lower on decreased red volume telling me to anticipate change with 1320 [close of] confirming an FTT?

Bingo.

HTH.

- Spydertrader

 

[Spydertrader]

Quote from Padawan:

In this specific example, the lateral movement area displayed both increasing black and increasing red volume. I thought that was interesting.

The market signaled a Point Three down channel and a Point Three Up Channel within this specific example of Lateral Movement.

Perhaps, context, in this specific example, differs a great deal more than what first appears.

- Spydertrader

 

[Padawan]

Quote from Spydertrader:

The market signaled a Point Three down channel and a Point Three Up Channel within this specific example of Lateral Movement.

Perhaps, context, in this specific example, differs a great deal more than what first appears.

- Spydertrader

I can see it now. Thank you. And thanks, Romanus.

 

[romanus]

Quote from Spydertrader:

HTH.

- Spydertrader

Thanks, it does! This stuff is really cool

 

[Spydertrader]

Quote from romanus:

Thanks, it does! This stuff is really cool

You should now have the ability to do the same thing beginning at 13:30 [close of] ES Bar (all times eastern, BTW). Based on your current skill set, only one Bar should give you a problem between then and now.

Bonus Question: Where does the answer reside for that one bar?

- Spydertrader

 

[Mr_Black]

Point 3 down ..... price drop like a rock....

 

[Padawan]

Quote from Spydertrader:

You should now have the ability to do the same thing beginning at 13:30 [close of] ES Bar (all times eastern, BTW). Based on your current skill set, only one Bar should give you a problem between then and now.

Bonus Question: Where does the answer reside for that one bar?

- Spydertrader

YM

 

[Spydertrader]

Quote from Padawan:

YM

Find the one bar, and see if you give the same answer.

- Spydertrader