Iterative Refinement

If I've correctly identified the period you referred to, I think that my annotations will help: your black (green) volume bars in the purple highlight don't follow a post FTT sequence at the level you were probably trading (red down channel). The second bar is actually the beginning of a red gaussian because its corresponding price bar forms a down tape, and it is part of a three bar non-dominant channel. Compare to the green highlight black volume bars that follow a valid FTT.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1745818>
Quote from Failure2Travers:

Yesterday I went long on my first big picture FTT. Price was only two points away from my LTL, and I saw a peaking red volume bar followed by two increasing black bars. I risked the low of the last bar which was the low of the day. Shortly after price traveresed back down, and then the next FTT caused the EOD rally. I am having some problems with my chart today, therefore I am unable to capture a visual of the scenario. Based on my description, is there anything I should have noticed which would have keept me out of the FTT reversal?
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Price - Volume - PRV
This is an example of how I view the relation of price, volume, prv.
This is the intrabar activity of one- single 5 minute bar in action.
The context of this bar must be added to what is taking place on the bigger picture.
price-volume-prv.jpg
 

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LittleMac,


Here is my chart of VSR. I very much agree with you analysis. We either have a start of a dominant traverse, or a possible BO.

Also, take a look at the fast stochastic. It is at ~51 at the moment. That is a buy signal according to JH. You might want to change your fast stochastic charts to 50 instead of 80/20.

I'm sorry, but SKX is not in my universe.
 

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For anyone still interested in the 'M' or 'W' Day puzzle, watch Volume during the day's opening three bars. If the market signals Volume 'drop off' at the Open, watch the 'M' or 'W' form throughout the day.

- Spydertrader
 
Quote from ljyoung:

...seems to me to be quintessentially negative...
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It might be a bad example by saying 10 trades cost 5pts. But over trading is the number one enemy for beginners ( financially and mentally ) every trader battles this constant negative accumulation with decaying performance.
I guess my point is 26 trades in 8-10 trades situation is not wise. instead of machine gun blast, lets be a marksman with fewer shots and more hits.

BR
 
Spyder,

I am quoting this sentence from the following post in September and I wanted to get clarification on the section in red.

http://tinyurl.com/3xt9j7

"However, none of this matters until Price breaks out of the formation (and the High / Low of the previous bar)".


By the High/Low I assume you are referring to the bar prior to the current bar (and not the 1st bar of the formation). The reason I ask is because the prior bar (high/low) defines the boundaries of the formation (except laterals) and wanted to make sure you did not mean something else by the specific mention of High and Low.
 
Quote from Spydertrader:

For anyone still interested in the 'M' or 'W' Day puzzle, watch Volume during the day's opening three bars. If the market signals Volume 'drop off' at the Open, watch the 'M' or 'W' form throughout the day.

- Spydertrader
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nice
 
Quote from ericta:

It might be a bad example by saying 10 trades cost 5pts. But over trading is the number one enemy for beginners ( financially and mentally ) every trader battles this constant negative accumulation with decaying performance.
I guess my point is 26 trades in 8-10 trades situation is not wise. instead of machine gun blast, lets be a marksman with fewer shots and more hits.

BR
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I agree BR that overtrading is the bane of many beginners' experience but equally important in this "fiscal regard" is undercapitalization. Your account must be able to take some hits as you learn to trade for real.

Jack (and others) have said the main reason for beginners getting blown away is not knowing what is going on in the market. He is one of the few teachers that actually gives you a set of instructions so you can learn what is going on and then an equally detailed outline of how to trade small - but profitably. So definitely yes - a marksman as opposed to an enebriated hunter with a shotgun, seeking revenge on what he thinks is a sitting duck for all the other ducks he missed a few minutes or hours or days ago.

lj

PS: Thankyou Spyder for the f/t on M/W.
 
Quote from Spydertrader:

For anyone still interested in the 'M' or 'W' Day puzzle, watch Volume during the day's opening three bars. If the market signals Volume 'drop off' at the Open, watch the 'M' or 'W' form throughout the day.

- Spydertrader
More...

Thank You Spyder !
-Awesome-
 
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