Iterative Refinement

Quote from ticktrade:

Focus lately has been on tape drawing. Not trying to change the methods, just trying to see if I can find a way to see the market easier.
Thick tapes are inc volume. Thin are decreasing. I removed a few of the dec. vol tapes that were contained inside a inc vol tape.
I've been taking a blank chart EOD and drawing tapes in hindsight in an attempt to see how they are drawn in different situations to contain price.
For now I start new tapes on OB's.
Some bar patterns I use the ltl. Whichever makes sense to contain price.
I think the pace changes may be more important to annotate in the tapes than just a little inc. volume bar.

any thoughts?
More...

I have been applying this concept to OB's with good results:

http://www.elitetrader.com/vb/showthread.php?s=&postid=2019573&highlight=stirrups#post2019573

Also with internals we are told to look for the bar which comes out of the shadow of bar 1 for clues on the tape.

Also in cases where we have a steepening tape, if price closes within the existing tape I have been extending it (the original tape) as well as drawing a new one (depending on P/V).

hth
 
Quote from ehorn:

Also in cases where we have a steepening tape, if price closes within the existing tape I have been extending it (the original tape) as well as drawing a new one (depending on P/V).

hth [/B]
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I've been doing a lot of that, drawing 2 tapes if the situation offers, what at my current level appears as a multiple choice. Than monitor and see how it plays out.
I get the same benefit from debriefing an unannotated chart and drawing tapes that contain price, than try to figure how it would appear in realtime.
Definetly an art to tape drawing, much more so than I would have imagined. And the difference it makes is not a SUBTLE :) one.
 
Quote from ticktrade:

I've been doing a lot of that, drawing 2 tapes if the situation offers, what at my current level appears as a multiple choice. Than monitor and see how it plays out.
I get the same benefit from debriefing an unannotated chart and drawing tapes that contain price, than try to figure how it would appear in realtime.
Definetly an art to tape drawing, much more so than I would have imagined. And the difference it makes is not a SUBTLE :) one.
More...

The 7 cases Jack provided + the additional cases offered by Spyder show us that we have 2 types of conditions within L2 traverses: tapes and internals. With this in mind, the issue becomes choosing an appropriate taping/boxing style given particular price behavior and sentiment, while also being mindful of where we are in the sequences for each level. I agree this is an art which comes from skill and experience. Spyder has been giving us masterpieces to learn from though :)
 
Here's something Jack posted a couple of weeks ago...

P.S. Please ignore the shoddy taping...

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2178780>
 

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