Iterative Refinement

[Spydertrader]

Quote from bi9foot:

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.

It is possible to break the Formation Boundary but not break the prior bar (second bar of a pennant) - depending on how the Pennant forms. However, if Price breaks the High or Low of the previous bar, it always breaks the formation boundary. As such, we want to see Price break the boundary and the previous bar (second bar of the pennant) High or Low. In addition, we want to see Price break the first bar of the pennant high or low - else we have a Lateral Formation.

I hope the above provided the clarification required. If not, please let me know.

- Spydertrader

 

[cnms2]

Two pennants (from the 1/9/08 esh8 chart at the low of the day) on the 5 min and 1 min fractals. After the first one the price continues down. After the second one the price reverses up.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1746196>

 

[Tums]

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1746210">

 

[cnms2]

This is a 1 min view of the B2R and B2B.

Quote from cnms2:

Two pennants (from the 1/9/08 esh8 chart at the low of the day) on the 5 min and 1 min fractals. After the first one the price continues down. After the second one the price reverses up.

annigif

 

[TraderD72]

Does anyone have Friday's ES chart to post??

Thanks in advance.

 

[Spydertrader]

Quote from TraderD72:

Does anyone have Friday's ES chart to post??

 

[guavaman]

Re-annotated this evening. Hope they are of some use.

 

[Munck]

Today, I have added the following to my Final Universe:

AVR, CSR, DBTK, HOGS, LDK, SKX, SOHU, SXE

Method: QCharts culling of AMEX, Nasdaq & NYSE stocks followed by Spydertrader's Chartscript Rank Scan 1.0

Parameters:

Price between 10-50$
65 avg. volume > 200.000
Float between 5-60 mio
Positive EPS
%Insider owned > 25%

 

[FerdinandAlx]

Quote from Munck:

Today, I have added the following to my Final Universe:

AVR, CSR, DBTK, HOGS, LDK, SKX, SOHU, SXE

Method: QCharts culling of AMEX, Nasdaq & NYSE stocks followed by Spydertrader's Chartscript Rank Scan 1.0

Parameters:

Price between 10-50$
65 avg. volume > 200.000
Float between 5-60 mio
Positive EPS
%Insider owned > 25%

Why didn't you add relative strength to your parameters?

 

[Munck]

Quote from FerdinandAlx:

Why didn't you add relative strength to your parameters?

As far as I know, RS culling is not possible with QCharts. If you know otherwise, please let me know