Iterative Refinement

[LittleMac]

No signals today from a beg/intermediate level equities standpoint. a lot of stocks were down and there could have been short plays but stocks like POZN and FED were in play so I stayed away. Wondering if anyone can comment on my ANW chart as I have been having difficulty with the guassians part of the chart.

Comments appreciated.

 

[bi9foot]

Spyder,

When you have 3 bars that form both a lateral formation and a pennant how do you treat them?

Do you regard them only as a lateral formation or do you also consider them as pennants as well when you consider the possible what must come next scenarios?

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1749282">

 

[Munck]

LittleMac,


Here's my ANV chart for comparison.

 

[Spydertrader]

Quote from bi9foot:

When you have 3 bars that form both a lateral formation and a pennant how do you treat them?

As always, the answer depends on context.

Should Price break out, but then, return and close within the Pennant Boundaries, then I view the Pennant First, Lateral Second. If, however, Price breaks the Pennant Boundaries, but not the Pennant Bars, I view the whole thing as a Lateral and act as if the Pennant never existed. In addition to these two main contexts, various others also exist which provide greater detail to the above two scenarios.

- Spydertrader

 

[ehorn]

Quote from Spydertrader:

As always, the answer depends on context.

Should Price break out, but then, return and close within the Pennant Boundaries, then I view the Pennant First, Lateral Second. If, however, Price breaks the Pennant Boundaries, but not the Pennant Bars, I view the whole thing as a Lateral and act as if the Pennant never existed. In addition to these two main contexts, various others also exist which provide greater detail to the above two scenarios.

- Spydertrader

A nice example just occurred (ES) with the FTP, lateral, and BO... and, of course, (YM) was a nice indicator too.

 

[TIKITRADER]

ES 5 Minute January 15 2008

 

[FerdinandAlx]

ES chart for January 15 2008.

 

[ljyoung]

Quote from Spydertrader:

As always, the answer depends on context.

Should Price break out, but then, return and close within the Pennant Boundaries, then I view the Pennant First, Lateral Second. If, however, Price breaks the Pennant Boundaries, but not the Pennant Bars, I view the whole thing as a Lateral and act as if the Pennant never existed. In addition to these two main contexts, various others also exist which provide greater detail to the above two scenarios.

- Spydertrader

Spyder,
Could you please explain what you mean by "break out" and "breaks"? I am presuming that by pennant boundaries you mean the High and Low of the first bar. Correct?
TIA
lj

 

[FerdinandAlx]

Keep an eye on LKQX tomorrow. It seems to be ready for another cycle.

 

[Spydertrader]

Quote from ljyoung:

Could you please explain what you mean by "break out" and "breaks"? I am presuming that by pennant boundaries you mean the High and Low of the first bar. Correct?

Breaks = break out

But no, I do not mean the High / Low of the previous bar in the above post. Pennant Boundaries are the lines drawn when annotating a Pennant. When Price "breaks out" (starts on one side of the line and moves to the other side of the line) of these lines, it does not necessarily hold true that Price has broken the High / Low of the bars involved in Boundary creation.

- Spydertrader