Iterative Refinement

[Tums]

Quote from cnms2:

I wonder if automatic annotation helps... For me annotation has to be an active (not passive) process, that puts me in tune with the market. There are almost no two identical situations in the market, and having something else pointing me in one direction might obscure other possibilities, and might throw me off course.

What is your opinion on this?

I found auto-annotating FTP/FBP/SYM/CCC helped my trading tremendously. I am more relaxed, and been able to catch a few trades I would otherwise missed.

FTT requires a bit more analysis than the previous labels. I am still working on the logics.
I found that being able to spot a FTT is a pleasure, so I am not sure if I am in a hurry to code it into auto-annotation.

 

[TIKITRADER]

ES Daily chart. January 14/ 2008
Bottom pane contains the volume on daily adjusted. At this time still working on daily volume levels.
Last bar is for the 15th.

 

[PTVtrader]

Quote from TIKITRADER:

ES Daily chart. January 14/ 2008
Bottom pane contains the volume on daily adjusted. At this time still working on daily volume levels.
Last bar is for the 15th.

long time lurker...first time poster.

 

[Spydertrader]

Quote from cnms2:

What is your opinion on this?

With respect to the more Mundane Stuff (FTP, FBP, SYM, CCC), I'd prefer to let the computer 'do the work' for me. After all, Pennants aren't a difficult concept for a computer based rule set to annotate. I view this no different than automated PRV. While I can (and often still do) mentally calculate the PRV Value, it sure is nicer to 'see' the value automatically annotated to a chart. With that said, Point Three's and FTT's develop in a myriad of ways. As such, until I had an opportunity to fully 'test' an automated FTT or Point Three annotation, I'd lack the confidence required to trade the automation profitably. I'm quite sure I'd spend half my time arguing with the program instead of making trades.

Just to be clear, the software I tested today makes annotation easier (and has the capability to automate it as well - although I did not test this part). In short, the software greatly reduces the time needed to annotate by simplifying the annotation process.

I'll have additional news on these different platforms within the next few weeks.

- Spydertrader

 

[FerdinandAlx]

Does it annotate based on price and volume information available at the bar's close or does it annotate in real time?

 

[ljyoung]

So with respect to the apparent association between pace (= money velocity = the rate of change of price) and harmonic wave form are there "real market" situations where a sufficient pace can convert a triangular wave form into a square wave form or is it that a triangular wave form by its very nature dictates that the pace cannot be so fast as to convert it to a square wave form? Me not know. Anyone know?

Similarly can an even harmonic (1,2,4) wave form be exposed to "real market" conditions such that by the reduction of the amplitude of the second and third components of the wave form (the "2" and "4"), the "square wave" appearance can be transformed into a "triangular wave" appearance? Me not know again. It is, as pointone has shown, "theoretically" possible to do this.

lj

 

[TIKITRADER]

Quote from PTVtrader:

long time lurker...first time poster.

Yes, I did have a tape there. I delete the tapes as the channels continue, to keep the chart as clean as I can.
On the daily chart, it appears that you have extended the current major down, point 2 channel line to the right .
It is that line you are considering an FBO of the red down channel?
If so, that is not an FBO. A VE has formed past the point 2 and it looks as if you have extended the point 2 line , and are crossing back over it after the VE, and calling it an FBO. As it is not FBO of the red down channel, but it is a retrace of the point 3 dominant traverse down channel.

A new channel(non dominant traverse) , retracing the dominant down channel though, may very well be forming here. For that I am waiting for increasing black and break out of the current dominant traverse.
Good outlook on the point 3 channel that mat be forming and b/o of the dominant traverse.

 

[PTVtrader]

Quote from TIKITRADER:

Yes, I did have a tape there. I delete the tapes as the channels continue, to keep the chart as clean as I can.
On the daily chart, it appears that you have extended the current major down, point 2 channel line to the right .
It is that line you are considering an FBO of the red down channel?
If so, that is not an FBO. A VE has formed past the point 2 and it looks as if you have extended the point 2 line , and are crossing back over it after the VE, and calling it an FBO. As it is not FBO of the red down channel, but it is a retrace of the point 3 dominant traverse down channel.

A new channel(non dominant traverse) , retracing the dominant down channel though, may very well be forming here. For that I am waiting for increasing black and break out of the current dominant traverse.
Good outlook on the point 3 channel that mat be forming and b/o of the dominant traverse.

I can understand your point of deleting tapes and channel lines, otherwise one can become "line crazy", but my point is that those deletions don't invalidate those "lines" in the future. Also because it takes volume to push through the original LTL to create the VE, don't you think that original LTL becomes the new RTL of the VE. So, if we get increasing black through the original LTL, it should at least confirm a non dominant traverse with and increasing possibility of reversal with the b/b.

 

[Spydertrader]

Quote from PTVtrader:

long time lurker...first time poster.

Welcome to the discussion. If you have questions, feel free to post them.

Quote from FerdinandAlx:

Does it annotate based on price and volume information available at the bar's close or does it annotate in real time?

I'll have more information on this subject in the coming weeks.

Quote from ljyoung:

Me not know. Anyone know?

With respect to The Market, anything can, and often does, happen. Whether or not such occurances translate into an opportunity for profit results from the skill set of the individual trader's ability to M.A.D.A. - all in an appropriate and timely fashion. As such, the question is not, "does this happen?" Rather, the question should be, "If this happens, would I 'see' it, and if so, would I know what it was quick enough, in order for me to act accordingly?" Only you know the answer to such a question.

- Spydertrader

 

[ljyoung]

Partial quote from PVT:
Also because it takes volume to push through the original LTL to create the VE, don't you think that original LTL becomes the new RTL of the VE.

If the "b" line in your rendering is to be the RTL then it must have a P1 and a P3. Where's the P3?
In your construction of the new up channel, there is a Jokari type failure of "black" volume which portends future events. There is also a lateral formation how ever the channels are drawn. I would agree with TIKI that we should wait and see but PRV on the last, developing bar looks kind of impressive.

lj