Iterative Refinement

[Avi 8]

Quote from TraderD72:

The differences I see ...

Ok good, but I was thinking more along the lines of what must come next. In other words, where are we in the sequence with these two bars.

Quote from R/R:

...12:23 YM while halfway through the bar showed large PRV slightly less than previous bar yet only a 6pt vs 25pt range. This says change so exit/reverse and smile.

Yes, exactly why I exited.

 

[ivob]

Quote from Spydertrader:

Everyday does happen just like those two channels. All day. Every day.

- Spydertrader

Yeah. Just slightly different each day....

regards,
Ivo

 

[Mr_Black]

My chart so far...

 

[LittleMac]

Got out of DSX today for a nice profit. Unusual Volume peak levels were not withheld today(1 day after the buy day) so I sold but I think according to the daily it has room to move up and looks like a clear Bruno R BO. One question I have is which story is more important? Volume telling me to sell? or the chart showing more room to move up?

Got a signal in SOHU off Unusual Volume. I usually wait for the point three on the 30 min chart to develop so I should buy sometime this afternoon. My Guassians are from from stellar.

Comments appreciated

 

[Spydertrader]

Quote from ivob:

Yeah. Just slightly different each day....

Actually, no, it is the same each day. Price moves from Point One, to Point Two, to Point Three on each and every channel. Price traverses the dominant direction on increasing Volume. Each Point Three channel shows increasing Volume beyond the Point Three. If it doesn't, then one does not have a channel. The YM leads the ES at every Point of Change. Price initially moves from Point One to Point Two on decreasing Volume.

The same sequences of "what must come next" repeat over and over again - 81 times a day.

Make no mistake. This is how the market works. Price (Channels) and Volume (Gaussians) on the ES and the YM is all anyone needs to profit handsomely - each and every day.

Focus on monitoring what must come next and burn the sequences of Price and Volume into your brain, so that 'knowing' comes as effortlessly as breathing. When completed, the vast majority of bars will then provide crystal clear signals of continuation and change. Outside Bars and Periods of High Bar Overlap may provide some difficulty, but we have logic for those as well.

Price and Volume. Price and Volume. Price and Volume. It's all anyone ever needs.

- Spydertrader

 

[ang_99]

Quote from Spydertrader:

Price initially moves from Point One to Point Two on decreasing Volume.



- Spydertrader

I'm confused by this sentence.

I thought price moved from pt1 to pt2 on Increasing vol. followed by decreasing vol from pt 2 to pt3 ....

 

[R/R]

Quote from ang_99:

I'm confused by this sentence.

I thought price moved from pt1 to pt2 on Increasing vol. followed by decreasing vol from pt 2 to pt3 ....

If FTT = point 1. What must come next before RTL BO?

 

[ang_99]

Quote from R/R:

If FTT = point 1. What must come next before RTL BO?

Oh yes. At points of CHANGE is what is being referred to. Yes, dec vol from ftt back to the RTL.

 

[Pepe]

Hi Spyder,

Thank you for the recent nice posts. It is very nice to know that you still have the patience to explain this things time after time

One thing you said on your post made me think a little, it may be nothing but I just want to clear this out.

(...) When ES Price reaches a Left Trend Line (including a Volatility Expansion), we begin the process .....

Since price sits on an extreme, the ES has given the trader permission to go and view the YM in order to 'see' if a signal exists. (...)

For example, the YM might show, increasing Price on increasing Volume, The YM might show decreasing Volume on increasing Price, or the YM might find itself within a formation (or 'forming' Formation). Two of these scenarios indicate continuation, and the third, indicates change (...)

In my initial reading I didn't have any doubt of the two scenarios that show 'Continuation' and the one that show "Change", it was obvious for me that scenario 1 and 3 are "Continuation" and 2 is "Change". But, when I read it again, it was not so obvious anymore. You presented the three YM scenarios given the context of ES being at the LTL. So, the scenarios may have a different intepretation.

Scenario 1: Increase Price and Increase Volume = "Continuation". No doubt here

Scenario 2: Increase Price and Decrease Volume. Decrease dominant volume does not always mean "Change". Lateral Movement is one of those cases, and Lateral Movement means "Continuation". So, Scenario 2 may in fact mean "Continuation".

Scenario 3: YM price inside Formation: This scenario may at first glance mean "Continuation". But given the context (ES@LTL) one YM bar that remains inside the previous bar (hence in a formation)but shows a direction change, means "Change".

So, in order to clarify things, can this be the right interpretation of what scenarios indicate Continuation and Change (given the presented context) ??

Thank you

Good Trading to you

 

[Avi 8]

Hey Pepe,

I'll take a stab at your questions:

Quote from Pepe:

...Scenario 2: Increase Price and Decrease Volume....

Classic Jokari Window. A decrease in volume (price up or down) means - change is coming.

...Scenario 3: YM price inside Formation

What do we do when price sits in a formation? We wait.