Iterative Refinement
- Thread starter Spydertrader
- Start date
Instead of viewing the interaction as negative, find a positive. After all, had you not posted, you'd not have had the opportunity to receive clarification with respect to your interpretation.
- Spydertrader
The market provided many opportunities to learn a thing or two this morning. First, the martket provided an Extreme Pace level bar on the ES 10:05 [close of] Bar - permitting the trader to recall an event on Friday on the ES 10:10 [close of] Bar. Both events showed Volume and Price breakout from Lateral Movement. Neither event showed Peak Volume. In addition, the market action this morning created a completed sequence from Point One to Point Two to Point Three on the ES 10:15 [close of] ES bar.
The market then stepped down in pace creating some sort of Lateral in the process. Hmmmmmmmm. Completed Sequence for a Traverse followed by a Lateral. What must come next?
The market breaks out of this lateral allowing the trader to see two examples of Peak Volume. However, as guavaman suggested, the sequences of Point One to Point Two to Point Three had not yet completed for the answer to our question, "What must come next?"
A few bars later, the market does complete its sequences for both a channel (and the channel's second dominant traverse) and offers up the expected signal for change creating an FTT in the process (ES 11:20 and 11:25 [close of] Bars).
Once again, the market undergoes an acceleration of Pace - this time creating an Outside Bar followed by a signal for change (Jokari Window), and once again we ask ourselves if the market has completed the sequences from Point One to Point Two to Point Three. Of course, the market has yet to do so, and as such, the trader (on The ES 5 minute Traverse Fractal) does not have permission to seek a change in market mode.
After another accleration of Pace (perhaps, by now, those Pace lines across the Volume Pane hold a bit more meaning than before) the market transitions into pace Step Down - where once again we see the formation of a Lateral. Since The market has yet to complete the sequences from point One to point two to Point Three for this new traverse, we once again know we have a Lateral Retrace, and expect a Breakout of Price and Volume to the up side - which will then complete our sequences, and provide permission for the trader to seek a signal for change.
HTH
- Spydertrader
The market then stepped down in pace creating some sort of Lateral in the process. Hmmmmmmmm. Completed Sequence for a Traverse followed by a Lateral. What must come next?
The market breaks out of this lateral allowing the trader to see two examples of Peak Volume. However, as guavaman suggested, the sequences of Point One to Point Two to Point Three had not yet completed for the answer to our question, "What must come next?"
A few bars later, the market does complete its sequences for both a channel (and the channel's second dominant traverse) and offers up the expected signal for change creating an FTT in the process (ES 11:20 and 11:25 [close of] Bars).
Once again, the market undergoes an acceleration of Pace - this time creating an Outside Bar followed by a signal for change (Jokari Window), and once again we ask ourselves if the market has completed the sequences from Point One to Point Two to Point Three. Of course, the market has yet to do so, and as such, the trader (on The ES 5 minute Traverse Fractal) does not have permission to seek a change in market mode.
After another accleration of Pace (perhaps, by now, those Pace lines across the Volume Pane hold a bit more meaning than before) the market transitions into pace Step Down - where once again we see the formation of a Lateral. Since The market has yet to complete the sequences from point One to point two to Point Three for this new traverse, we once again know we have a Lateral Retrace, and expect a Breakout of Price and Volume to the up side - which will then complete our sequences, and provide permission for the trader to seek a signal for change.
HTH
- Spydertrader
Quote from guavaman:
I would post a chart if I wasn't such a dumbass when it comes to such things. Having said that, it is not differences in the PV bars that is of concern, but rather where in the sequence they occur. With the location of PV in this sequence, did we have permission to look for change. Was the sequence completed for the trading fractal you are on?
Unfortunately you (sort of) took my post out of context. I was making the point of we had 2 back to back instances of peak volume bars, and that we needed to determine why one would be a signal for change and the other would not.
Important thing is that we are moving along the prompted path
-Au
Just to be clear ...
Not because Peak Volume doesn't signal change on a Traverse, but because the market hadn't completed its sequences from Point One to Point Two to Point Three. As such, a Traverse level trader on the 5 minute ES did not receive permission from the market to seek a change in mode.
- Spydertrader