Iterative Refinement

[romanus]

Quote from Spydertrader:

What appears as Peak Volume exhibits a subtle difference to the actual signal - Pace Acceleration. One can study the effects of Pace Acceleration by reviewing the 5 minute ES on 7-30-2008 from 15:15 to EOD. How can we know for sure Bar 7 doesn't signal Peak volume? Bar 8 moves higher. Of course, in hindsight this is perfectly clear. However, in real time, (once differentiated) the difference is also crystal clear. I leave to you the work of differentiation.

Thank you for the additional data. I’ll start looking for the ’subtle differences’.

Quote from Spydertrader:

As to whether or not a Traverse exists on the 4 bar run up in Price and Volume, Ask yourself, "What do all Traverses have in common?" and "Do my annotations reflect this?"

Make sure you use only the tools avilable on the five minute ES.

What all Traverses have in common is a retrace. In this case there isn’t even a decreasing black. There’s no way these 4 bars can be annotated as a Traverse. It’s a tape.

 

[Spydertrader]

Quote from romanus:

What all Traverses have in common is a retrace. In this case there isn’t even a decreasing black. There’s no way these 4 bars can be annotated as a Traverse. It’s a tape.

Then, what does this tell you with respect to, 'What must come next?"

- Spydertrader

 

[romanus]

Quote from Spydertrader:

Then, what does this tell you with respect to, 'What must come next?"

The retrace is coming, because we have not seen it yet since the trend started.

 

[Spydertrader]

Quote from romanus:

The retrace is coming, because we have not seen it yet since the trend started.

And as anticipated, you, once again, have shown that you already have the answers you seek.

- Spydertrader

 

[nkhoi]

Quote from LittleMac:

Whats the change at bar 3 then? ..

increase price x increase vol.

 

[LittleMac]

Quote from romanus:

The retrace is coming, because we have not seen it yet since the trend started.

Could we just accept the fact that it cant be peak volume here(bar 7) because the traverse hasnt been established yet. Therefore even on bar 7, we know peak volume is not an option because we haven't had pt 1 2 and 3 yet. Is this correct or were you thinking something else?

 

[LittleMac]

Quote from nkhoi:

increase price x increase vol.

the volatility decreased on bar 3 from what i see while the volume increased. This is the 9:40 close of bar is what Im hoping(the bar after the outside bar) correct me if I'm wrong

 

[romanus]

Quote from Spydertrader:

And as anticipated, you, once again, have shown that you already have the answers you seek.

Thank you, the picture becomes more clear now.

 

[Jander]

Quote from LittleMac:

the volatility decreased on bar 3 from what i see while the volume increased. This is the 9:40 close of bar is what Im hoping(the bar after the outside bar) correct me if I'm wrong

Seems like jokari window to me. Incr. red volume, yet price closes higher. Also, incr volume w/ decr volatility would not be an action point at this fractal, if im not mistaken

 

[Jander]

Quote from LittleMac:

Could we just accept the fact that it cant be peak volume here(bar 7) because the traverse hasnt been established yet. Therefore even on bar 7, we know peak volume is not an option because we haven't had pt 1 2 and 3 yet. Is this correct or were you thinking something else?

Sounds right