Iterative Refinement

Quote from Munck:

It seems a lot of ground have been covered since your last "writeup", perhaps people could use a "refinement" of the last [equities] summary? (I for one would find it useful).
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One should continue to build their Final Universe in the same fashion previously discussed. Whether culling the entire stock market or using the stocktables.com web site (or other source of High Quality Stocks), the entire process begins by creating a Final Universe. Once created, scan the Final Universe looking for stocks in 'Dry Up' mode.

We then want to evaluate each symbol. Using Hershey Equities Chartscript Version 5.0, review each symbol checking to see if the technicals 'match' the criteria needed for monitoring the next day. Whether one trades using the Indicator Sequences ('bruno R' Signal), Mathematical Dry Up calculations, or Price (Channels) and Volume (Gaussians) alone, culling the 'Dry Up List' in an attempt to monitor only the very best candidates increases the likelihood of success.

During 'normal' market conditions (periods of time where the Final Universe doesn't contain as many stocks), one can simply monitor the 'Dry Up' list (rather than, cull further searching for 'the best' candidates) looking for Equities exhibiting Volume and Price Breakout. In other words, we look to buy these stocks when Volume (on a PRV basis) moves out of Dry up and into the next phase.

With respect to exiting a trade, feel free to use whatever exit criteria best suites your trading style (e.g. LTL touch, RTL breakout, 4 day hold, etc).

Good trading to you.

- Spydertrader
 
mdl060374, thanks for your question. my thinking is that we should look at the formations in the context of the greater picture. what's helped me is using multiple inputs (channels, gaussians, prv, 20sma, indicators) to make a decision. i try to have several reasons based on jack's method's to enter/exit trades using at least two fractals for information. the exception possibly being if1/if2/apa. this has helped tremendously, especially during this morning's open. :D best wishes.
 
btw, that is not to say you can't be profitable using channels/gaussians only on the 5 min. chart, because you can. i was simply sharing with you what has helped me improve.
 
Quote from Padawan:

btw, that is not to say you can't be profitable using channels/gaussians only on the 5 min. chart, because you can.
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AND HOW! :cool: What a ride this morning.
 
Hi Spyder, the warning was greatly appreciated. :D Were you anticipating red to red because of the flaw in the non-dom? Also, would STR/SQU have given an alert on the 10:30/10:35 bars, 11:35/11:40 bars, or the 12:40/12:45 bars? I'm not monitoring STR/SQU yet, but am trying to pinpoint ahead of time where the tool might be useful in the sweeps. If I should just wait and find out later on my own, that's fine, too. Thanks for the chart.
 
now that i think about those questions...nevermind. no need to answer as I'm getting ahead of myself. something clicked a few days ago and now I'm seeing results and getting antsy. thanks for all the support you give, Spyder. i'll cross the STR/SQU bridge in due time.
 
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