Iterative Refinement
- Thread starter Spydertrader
- Start date
Hello LittleMac,
I have added annotations to what I "see" when I view this screen:
I see R2R2B volume gaussians (indicates change at this level)
I would be anticipating some potential behaviors:
A possible Non-Dom retrace (Blue channel) to the area around the RTL of the fanned channel (Orange)
Some kind of lateral movement or some type of internal formation (Yellow lateral lines) as the large move consolidates before a B.O.
As volume and price develop, certain things can just be eliminated leaving one possibility. So while I believe it is good to anticipate like this (i.e. Look to See the possibilities) It is best to be in the NOW when trading.
Having played out the various scenarios as the future moves into the NOW allows you to consider what "MUST" come next in order to validate. Price and volume are sufficient to tell you what "MUST" come next.
Hope that helps and best wishes in your journey!
Haroki would u care to explain briefly how you search for potential trades on the previous night(since you mentioned you dont use DU specifically) and also how you reach a signal of buy or sell in the morning in terms of Chart, Volume, Fractals that you use. Ive followed some of your trades but am not entirely clear on your reasons.
Any insight would be much appreciated.
- LittleMac
Any insight would be much appreciated.
- LittleMac
Sure. I bought BHS today. Bought at 11.47, sold today at 12.90. I'm not doing any overnight holds right now. No need to wake up and find yourself down 7%
Here's the chart as it ended on Tuesday.
I saw several things that put it onto today's watchlist.
1-FTT on Tuesday
2-Close to the LTL the med term trend line - thick red
3-Hugging the LTL of the short term trend line - thin red
4- decreasing volume until Friday. Blue line in the volume pane is a 65 day EMA to give a quick visual reference to avg volume and volume trends
5- inc volume on Tuesday, with only about a 2% price move
6- 2 VE's on dec volume
7-Tuesday's low didn't get past the 52 wk low-horizontal red line
8-outside Keltner channel
Lotsa good things lined up there.
And this morning, it opened down only about 2%, one of the best on my hotlist.
Price took off like a rocket, even though volume wasn't great on the first 30 min bar. But futures were jammin' so I threw the dice. 2nd bar showed good volume so I felt better after that.
Day ended like this. Nice breakout.
Price took off like a rocket, even though volume wasn't great on the first 30 min bar. But futures were jammin' so I threw the dice. 2nd bar showed good volume so I felt better after that.
Day ended like this. Nice breakout.
Here is an annotation of M / W days.
This is the possible outcome of decreasing volume on first three bars on open.
My mistake in the past was only seeing change on open to form W / M days.
Left out one little ( major )
possibility. . .
continuation on open.
Drawing not so great, but the idea is there.
Please add to this if I am still missing something !
This is the possible outcome of decreasing volume on first three bars on open.
My mistake in the past was only seeing change on open to form W / M days.
Left out one little ( major )
possibility. . .continuation on open.
Drawing not so great, but the idea is there.
Please add to this if I am still missing something !
Daily fractal. I enter (usually) using the unusual volume table. I rarely drop down to a 30 minute, depends if the day has mixed signals.
5- inc volume after is always a good place, so long as yesterday wasn't like 2x normal volume. Tuesday was just over 1x, so as long as TODAY'S volume looked to be increasing, jump in.
6- VE's on dec volume are a sure sign that the move is exhausted. On increasing volume.... might continue.
8-Keltner channels/Bollinger bands aren't taught here, but a lot of people use them so you can use them for deciding what others will do.
Have not had much time to trade since a year ago. Are any of you still in the chat room? Downloaded today's chat and didn't see spydertrader or any of the more familiar names.
Also, thanks spydertrader for starting a new journal. Not sure when I will be able to be able to trade more fully again. However, its nice to know that this journal will always be here.
Also, thanks spydertrader for starting a new journal. Not sure when I will be able to be able to trade more fully again. However, its nice to know that this journal will always be here.
I'm currently waiting for SNHY to give me an Unusual Volume signal. According to my chart I'm expecting increasing black volume and a BO of the purple down channel today. If Unusual Volume doesnt hit I'm thinking it will be an FBO. 2 questions.
1. Do I widen my purple channel if an FBO occurs?
2. Is my chart correct? Comments welcome.
1. Do I widen my purple channel if an FBO occurs?
2. Is my chart correct? Comments welcome.