Iterative Refinement

[Tums]

Quote from Spydertrader:

In case anyone has an interest, you can locate Today's Chatroom Log by clicking here.

- Spydertrader

I have edited today's chat log for your reading enjoyment. (removed the willies, pigs and the toilet40.)

per bi9foot :
FYI for those that might review the chat logs. the time stamp on the chat logs are 4mins and 15 secs behind

 

[ticktrade]

Thanks once again for your efforts. I was in the process of going through using word to find spyder(nkhoi gave me the idea). Your edited log makes it easier.
Always so much to gleen from these sessions. Wish I had the time to be there but will still benefit after hours of review.

thanks Tums.

Quote from Tums:

I have edited today's chat log for your reading enjoyment. (removed the willies, pigs and the toilet40.)

per bi9foot :
FYI for those that might review the chat logs. the time stamp on the chat logs are 4mins and 15 secs behind

 

[Haroki]

Quote from LittleMac:

Haroki also got out of GLNG. My question is...on the daily we saw increased black today meaning a continuation of the RTL traverse of the new up channel..after the BO. On the 30 min I see a clear FTT with a r2r break from the same traverse. So, is this a pt 2 bringing us to a possible point 3 of the new up channel(on the daily chart). Is it a BO of the current traverse(according to 30 min chart)? or is it both? Ive heard to hold through this and have heard to get out and either go short(at point 2) or wait for a point 3 to develop and get long again.

I don't mean to be confusing.. im trying to be as descriptive as possible. Comments appreciated.

Nice debrief.

Personally.I got out cuz midday volume was really, low, and when it came in, instead of price going up, it tanked. Plus 7% is ok considering the market conditions and tomorrow's FOMC bs.

Curiously, it shows an aftermarket price of 20.50, which is the high for the day.

 

[ivob]

Quote from Spydertrader:

In case anyone has an interest, you can locate Today's Chatroom Log by clicking here.

- Spydertrader

Too bad I missed it. (missed the anouncement)

I was checking the log with my graphs and just wanted to have something clear.

You went short in the 15:10 bar. Why? That bar had less than 50% of the volume of the previous bar and I was thinking "flaw" at that moment. Was YM the reason? Another reason why I did not consider this bar to be an FTT is the fact that it didn't try to touch LTL. You would expect another bar later on to try to touch LTL.

Then you held the complete 15:20 bar although it clearly had increasing black volume compared to the previous bar? Am I right about that? Was the reason the fact that volume was lower than the 15:05 VE bar and it was broken by just a few ticks after which increasing red followed?

In other words: the reason to stay in was that price did not break out of the lateral formation on increasing volume?

This requires an excellent entry on the 15:10 bar because one could easily have gone short at 1364 and suffer a 3 point loss had the lateral been broken upwards.

regards,
Ivo

 

[Spydertrader]

Quote from ivob:

You went short in the 15:10 bar. Why?

The point of the trade was to simply pick a point in time and walk through the thought process from entry to exit or reversal. What 'must' come next, and if it doesn't, when to exit or reverse.

Quote from ivob:

Then you held the complete 15:20 bar although it clearly had increasing black volume compared to the previous bar?

Actually, no. I exited before the close of that bar. Again, while watching the YM, increasing black appeared, but did so after a Lateral BO, not until increasing black appeared on the following bar did we have confirmation of continuation.

Quote from ivob:

This requires an excellent entry on the 15:10 bar because one could easily have gone short at 1364 and suffer a 3 point loss had the lateral been broken upwards.

Where one enters is far less important than seeing the right side of the market. Far too many beginning traders 'wait' on confirmation, rather than, entering at the first signs of change, and then, monitoring for confirmation after their entry.

- Spydertrader

 

[Munck]

Quote from Spydertrader:

{$I 'GetNewDUData'}

var DUSignal : integer;
var Bar : integer = BarCount - 1;
var curVol : float = VOLUME(Bar);

var td : TDuData = GetNewDUData(60);

AddScanColumn( 'Current Volume', curvol );
AddScanColumn( 'Dry Up Volume', td.t_DuHighThresh2 );

if (curVol < td.t_DuHighThresh2) then
begin
EnableTradeNotes( false, false, false );
BuyAtMarket( Bar + 1,'In Dry Up');
AddScanColumnStr('In Dry up?', 'Yes');
end
else AddScanColumnStr('In Dry up?', 'No');

Spyder, thanks for the advice in the ET chatroom yesterday. Could you elabroate a bit on your latest dry-up chartscript? - I would like to understand the process behind the scenes rather than just relying on Wealth-Lab.

TIA.

 

[eliasg101]

Thanks for all the information and bountiful knowledge provided by Jack, Spyder and the contributing members of the treads. My journey to profitable trading is under way. I have been as Spyder put's it a lurker up until now. I just wanted to take this opportunity to come out of the woodwork give a big Thank You and wish everyone good trading.

-E

 

[Spydertrader]

It has come to my attention that I failed to update the Score Scan during the previous round of Chartscript Updates. To that end, one can now locate the updated version of the Score Scan by clicking here. Scores between Chartscript Version 5.0 and The Score Scan should now match.

- Spydertrader

 

[Spydertrader]

Quote from Munck:

Could you elabroate a bit on your latest dry-up chartscript? - I would like to understand the process behind the scenes rather than just relying on Wealth-Lab.

Rather than looking back to find the lowest days Volume across a three or six month time frame, and then, using statitical probability to determine possible Dry Up for any particular stock, I know have the chartscript calculate Dry Up based on all days Volume during the most recent 60 market days. By breaking down Volume levels by Pace, the lowest volume days now fall under VDU (Very Dried Up) with the next higher group determing Dry Up. As such, the lowest 30% of all market days (encompasing the last 60 trading days) now signal a stock has entered dry up Mode. This now eliminates the need for statistical probability and provides a more accurate representation of when a stock enters and leaves Dry Up Mode.

- Spydertrader

 

[ivob]

Quote from Spydertrader:


...
Actually, no. I exited before the close of that bar. Again, while watching the YM, increasing black appeared, but did so after a Lateral BO, not until increasing black appeared on the following bar did we have confirmation of continuation.
...

Okay. This makes perfect sense to me and I would have done the same although I would not have gone short at that perfect price you did (65.5 I recall) I think.

Had there been a clear immediate lateral breakout to the upside I suppose a reverse would have been appropiate which would have made up quickly for the previous loss.

So you have to know when to exit and when to reverse. You can exit out of precaution (oops, we have a lateral instead of trend change) and we reverse when we are sure (trend changed)

regards,
Ivo