Iterative Refinement

[cnms2]

When this seem to happen, that's probably an "invented" channel. Volume validates or invalidates the channels we are drawing.

EDIT: In your example (need context to understand it) maybe the new channel starts at your pt3, that is an FTT. Please notice the raising red volume before it, then dropping black.

Quote from dkm:

Frequently I see increasing volume on the non dom traverse from pt2 to pt3 and then pt3 forms with decreasing volume in the dominant direction. This is not a rare occurence and it continues to confuse me.

 

[cnms2]

RTL bounce ... Channels work ...

 

[guavaman]

Quote from 8833broc:


When I analized my dominate tranverse losses I discovered that they all happened on strong trending days where I stubbornly focus on going against the trend on a perceived FTT.

My long lost mental twin :

 

[gooch87]

Here is my work for the day,+6 points, 1 paper trade.

 

[guavaman]

Quote from gooch87:

Here is my work for the day,+6 points, 1 paper trade.

As the journals will show I am reticent to dispense advice, for good reason; others are far more qualified than I to attempt this. With that said, in my opinion, you need to focus on Gaussians to have them better reflect to price action inside the channel to better assist you in "seeing" the market.

guava

 

[ivob]

Just an example of a tape break that did not materialise. Good moment to short. However, afternoon is coming up and the question is if we can make enough volume to continue to go down. If not, change will come soon.

Ivo

 

[ljyoung]

Quote from Spydertrader:

Three things create the scenario you describe.

1. Formation Break Outs (as you have in your clip)

2. 'Missed' (ommitted annotation) channels

3. Intra-Bar Gaussian Shift (Price switches from Dominant to Non-Dominant Intra-Bar)

If you have any (or a combination) of the three, anticipate seeing increasing Volume on the Non-Dominant Traverse.

- Spydertrader

Beautiful! BO of FBP followed by Ibar G-shift at #3 bar, then BO of a 3-bar mini-channel. #3 bar also shows decreasing P (LH/LL) and increasing V which is Jokari Window compatible but because pace (dP/dt) did fall (bar range is less than prior bar) with increasing volume, can this pace shift be used to alert one to anticipate change?

The retrospectroscope is a powerful and, of course, extremely accurate instrument and so I well may be reading more in to this than what is there. If so I am sure you will alert me to this over-zealous and incorrect application of perceived understanding.

lj

 

[Padawan]

Seems much easier to know what's happening on days like today.

 

[Munck]

I was wondering what the equities people thinks of XING.

According to my chart, if we see increasing red volume the next couple of days, we have a RTL BO. If we see increasing black volume, we have a FBO.

Right now I'm in a long position, awaiting what the markets tells me tomorrow. After all, the market is always right, and all one can do is act accordingly as have been mentined several times already

 

[bi9foot]

Quote from Spydertrader:

...
Nope. exit only if Volume is decreasing.

- Spydertrader

Re. Drill:

Taking for example the first 4 bars from today.

Enter short at bar 2 and hold until bar 4 close to exit?

Thanks

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1753117">