ES Daily - January 15/2008
Last bar forming is for the 16th.
Adjusted volume bottom pane.
Last bar forming is for the 16th.
Adjusted volume bottom pane.
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Iterative Refinement
- Thread starter Spydertrader
- Start date
Quote from Spydertrader:
Of course, Price could continue moving higher creating numerous Volatility Expansions one after another. In addition, a flaw might materialize after a VE. As such, The Market has provided an opportunity for a steeper (accelerated) channel.
Lastly, I'm not quite sure how one could get a Point Three after a VE. I can see the following sequence:
VE - Decreasing Non-Dominant Volume Back to the RTL followed by increasing Dominant Volume to an FTT (with lower High than the High of the VE).
However, I cannot 'see' a Point Three immediately following a VE. Perhaps, you could post a chart indicating that which you described in case I have misunderstood your meaning.
Good trading to you.
- Spydertrader
I understand that their can be multiple ve's in a row and also flaws can and will materialize. My point , which I seem to be having a hard time articulating is what I feel to be the importance of the original LTL and how price and volume levels react at the original LTL. To me, the LTL helps in my continuation /change mindset and future price anticipation. I was wondering if others had used or noticed this.
In my chart, I am not looking for point 3 immediately following a ve.
Hopefully the re-annotating clarifies my opinion
Attachments
Lookin for a breakout in STAR tomorrow of the current red channel. Looks like the FTT lines up to me with the fast stochastic and the decreasing black volume is in place. hopefully we see increasing black volume for the next few days confirming a BO.
Comments and comparisons welcome.
Comments and comparisons welcome.
Attachments
Quote from bi9foot:
Here are a few scenarios I have drawn (based on the recent discussions).
I marked b & c as lateral movement because the last bar cleared the high of the formation bar 1.
Please let me know if I am wrong.
However you call it, aren't we just looking for a breakout of the triangle on increasing volume?
regards,
Ivo
Quote from ivob:
However you call it, aren't we just looking for a breakout of the triangle on increasing volume?
regards,
Ivo
Well if it breaks out with increasing volume everything is fine however in some cases that is not the case.
- Sometimes price breaks out of the formation on low volume and the increasing volume comes once price has moved away from the formation.
- Spyder has also mentioned how lateral formations and lateral movements are distinct things. Differentiating them provides important clues and hence I would consider it significant.
http://tinyurl.com/3xrck5
Differentiating between Lateral Formations and Lateral Movement often provides significant clues to what must come next. In addition, understanding these differences sheds a significant amount of light on drawing Gaussians (not annotated) through areas which might normally appear unclear
Quote from bi9foot:
Here are a few scenarios I have drawn (based on the recent discussions).
I marked b & c as lateral movement because the last bar cleared the high of the formation bar 1.
Please let me know if I am wrong.
Thanks for the lucid drawings bi9. So would you say that c, d and e are all pennant BO's? Then with bar 4, there must be a close above the high of the first bar for a lateral formation BO (a,b,d,e) and for c it would be called a lateral movement BO (or something like that)? (Edit: Let's assume that in all cases the volumes are higher than bar 3).
lj
Quote from ljyoung:
Thanks for the lucid drawings bi9. So would you say that c, d and e are all pennant BO's?
c & e are pennant BOs. d is not a BO since it did not clear the high of the prior bar.
Then with bar 4, there must be a close above the high of the first bar for a lateral formation BO (a,b,d,e) and for c it would be called a lateral movement BO (or something like that)? (Edit: Let's assume that in all cases the volumes are higher than bar 3).
I would agree with your statement except to note that I would add "b" to the lateral movement category instead of lateral formation.
Partial quote from bi9:
c & e are pennant BOs. d is not a BO since it did not clear the high of the prior bar.
That makes sense to me. Now let me ask one more question. Can you anticipate which of the five 3-bar entities would be more likely to go on to give a full-fledged BO and close above the high of bar 1? My guess is that it would be either c or e and with "comparable volumes for the 3-bars" would pick c because it has the pennant BO and a "tie" with b for the greatest pace - but I don't know.
lj
c & e are pennant BOs. d is not a BO since it did not clear the high of the prior bar.
That makes sense to me. Now let me ask one more question. Can you anticipate which of the five 3-bar entities would be more likely to go on to give a full-fledged BO and close above the high of bar 1? My guess is that it would be either c or e and with "comparable volumes for the 3-bars" would pick c because it has the pennant BO and a "tie" with b for the greatest pace - but I don't know.
lj