Iterative Refinement
- Thread starter Spydertrader
- Start date
Thank you Spyder for all your time and sharing.
ES U8 Daily Chart June / 18 / 2008
Daily ES bar made a LL and a LH on increasing dominant volume.
A point 3 traverse in the dominant direction of the trend was recognized at bar end yesterday, and needed more increasing volume to follow today.
Dominant volume today increased by 369,230 more than previous day.
Although price formed a LL and a LH on dominant volume following a point 3, price still closed within the lateral movement 1.75 point short of b/o.
Daily bar range today = 21 points
Close of daily bar = 20% of the range on dominant volume.
Daily ES bar made a LL and a LH on increasing dominant volume.
A point 3 traverse in the dominant direction of the trend was recognized at bar end yesterday, and needed more increasing volume to follow today.
Dominant volume today increased by 369,230 more than previous day.
Although price formed a LL and a LH on dominant volume following a point 3, price still closed within the lateral movement 1.75 point short of b/o.
Daily bar range today = 21 points
Close of daily bar = 20% of the range on dominant volume.
My BEXP chart shows increased black for today. Although the bar is red it is clearly a black bar being that is has a higher high and higher low. I learned this way too late myself. One thing I would be cautious of is the lateral over the past few days. It couldn't seem to break this lateral to the upside today. I would want to see a BO of this lateral and increased black volume tomorrow and if not Id start to think about taking some profit before it heads back down the lateral.
Unusual with no Bruno picks for tomorrow and a few dry up stocks: FTK NTRI OME OMRI PERY PNSN PWRD STAR SWS TSL ULTR VDSI YTEC ZOLT ZUMZ
Omni, one of the tenured stocks continues to amaze with volume for the last month or so. But black is starting to shrink and today was mostly sideways after a big opening move.
Other stocks followed are VOCS which is teetering on the right trend line after 3 down days and CXO. CXO, after months of going up and then breaking into a steeper upward trend, is showing a lot of red over the last few days without breaking the uptrend.
Intraday action for the past 2 days have shrunk from a $6-wide trading range to a narrow lateral range ($.60) . It is like waiting for some outside force as overall volume has stayed high.
Have attached daily chart.
Comments welcome and appreciated.
Omni, one of the tenured stocks continues to amaze with volume for the last month or so. But black is starting to shrink and today was mostly sideways after a big opening move.
Other stocks followed are VOCS which is teetering on the right trend line after 3 down days and CXO. CXO, after months of going up and then breaking into a steeper upward trend, is showing a lot of red over the last few days without breaking the uptrend.
Intraday action for the past 2 days have shrunk from a $6-wide trading range to a narrow lateral range ($.60) . It is like waiting for some outside force as overall volume has stayed high.
Have attached daily chart.
Comments welcome and appreciated.
Chuy,
I think I see what might be up with CXO, and why the charting software coloring might be confusing you. Someone just corrected me about a volume bar I had colored red, when it was really colored black. The reason being that the bar, though it was lower overall, had made a higher high. This is the case with cxo here. If I am right, this is increasing black volume. However this is basically the fourth day of increasing volume during what should be a dominant traverse, and it just doesn't seem to be making it to the LTL. I would suspect that today may have been an FTT and the stock will head south soon.
This is my VERY HUMBLE opinion
. I am by NO MEANS one of the experts here. However, hopefully someone else can chime in and let us know if I amn totally off the mark.JF
I actually closed out of that today. 13 % ain't bad
But I would like input as to whether my logic made sense. I saw that the volume seemed to have just made it into the "EXTREME" area. Barely, but it was there. In addition, the stock never made it back to its opening price. Am I wrong to look at these two facts as indicators of change?
JF
Quote from Spydertrader:
I recommend focusing on your purchase of BEXP yesterday in an effort to differentiate this trade, from others. The Stock found itself in 'Dry Up' on Monday. Volume pushed Price higher on Increasing Black yesterday while, "taking the stock out of Dry Up," and thus, providing a 'signal to go long.' Today, with the overall market down over a hundred points, BEXP continues to perform well.
Nice trade.
- Spydertrader
I am looking at the chart for BEXP. Am I wrong in seeing that it had been in a long upwards tape since about May 7th and formed a pt3 on May 15th? I am trying to figure out "what went right" beyond the decreasing red volume leading into DU, and then increasing black Volume.
JF
I think its time to go to bed. The charts are starting to look fuzzy .
I think I am beginning to see some of my problems when examining channels.
1) A misunderstanding of inside bars. As I am reading through the futures journal, it seems that inside bars or short bars with decreased volume are generally "flaws". I need to do some more reading to understand these better.
2) A miscoloration of bars. Someone corrected me recently on a bar which was colored red by my software, but which was actually black because it had a higher high, even though it closed below the previous bars high. I still don't quite understand why (i.e. How far down would the below bar have to go down before it is considered red?), but I am hoping further reading will help me understand how to color what, as I guess the software is sometimes wrong.... (I am currently using qcharts)
.I think I am beginning to see some of my problems when examining channels.
1) A misunderstanding of inside bars. As I am reading through the futures journal, it seems that inside bars or short bars with decreased volume are generally "flaws". I need to do some more reading to understand these better.
2) A miscoloration of bars. Someone corrected me recently on a bar which was colored red by my software, but which was actually black because it had a higher high, even though it closed below the previous bars high. I still don't quite understand why (i.e. How far down would the below bar have to go down before it is considered red?), but I am hoping further reading will help me understand how to color what, as I guess the software is sometimes wrong.... (I am currently using qcharts)