Iterative Refinement

[charts]

Quote from romanus:

http://www.elitetrader.com/vb/attachment.php?s=&postid=2091137
After the blue up traverse ends, the market has to transition to dominant red. Which means one has to see increasing red, which is not one of the three cases. The first bar that shows it is 1430 eob. ...

First red bar is earlier ... 1400, RTL BO.

 

[charts]

Quote from romanus:

http://www.elitetrader.com/vb/attachment.php?s=&postid=2090821

orange down traverse - 1115 eob changes dominance to red, the next bar starts lateral retrace. Do you think it's a coincidence that 1205 eob ( the second bar of FBP) is increasing red?

First confirmation is one bar earlier, the outside bar ...

 

[Neoxx]

Also, here's a preliminary draft of a mind-map based on Jack's Channels paper.

If anyone feels this might be useful I'd be happy to post an updated graphical version when it's ready.

 

[romanus]

Quote from charts:

First red bar is earlier ... 1400, RTL BO.

increasing red comes from SYM BO

Quote from charts:

First confirmation is one bar earlier, the outside bar ...

closes back inside the lateral established by 1120 eob - no pt3 yet.

 

[charts]

Quote from romanus:

1. increasing red comes from SYM BO
2. closes back inside the lateral established by 1120 eob - no pt3 yet.

1. next bar, the red increasing volume
2. it doesn't matter; it matters that's bellow previous bar's low

 

[romanus]

Quote from charts:

1. next bar, the red increasing volume
2. it doesn't matter; it matters that's bellow previous bar's low

1. the volume on 1405 eob is decreasing on both mine and Spydertrader's charts.
2. there isn't any bar with increasing red volume prior to 1200 eob - therefore no pt3 yet

 

[charts]

Quote from romanus:

1. the volume on 1405 eob is decreasing on both mine and Spydertrader's charts.

 

[charts]

Quote from romanus:

2. there isn't any bar with increasing red volume prior to 1200 eob - therefore no pt3 yet

 

[romanus]

Quote from charts:
1.png

formation BO - one of the three cases

 

[romanus]

Quote from charts:
2.png

it closes back inside the Lateral Retrace beginning 1120 eob bar (not annotated on a snippet) - no pt3 yet