Iterative Refinement

[LittleMac]

GKK and DSX gave signals off Unusual Volume today. Chose to get into DSX cause I feel it has more room to run. Currently I'm in at 28.25, hoping it will lift off soon. I'm thinking this is a run up from a new point three which established itself yesterday. If the Stoch pass 50, it could see a nice run up. But I'm still in the mode where every little tick makes me nervous.

Comments and thoughts appreciated.

 

[Avi 8]

Quote from LittleMac:

... I feel ....hoping ....nervous.

Comments and thoughts appreciated.

Are these emotions ones that are necessary for the process discussed here? I don't recall Spydertrader or anyone else mentioning to 'feel', 'hope' or be 'nervous' when using the methodology correctly.

Please understand this is not an 'attack', just pointing out what I get from your post of where you 'are' in the learning process. It is not a 'bad' place to be, but more 'travelling' down the path is required to defeat these demons.

 

[LittleMac]

Quote from Avi 8:

Are these emotions ones that are necessary for the process discussed here? I don't recall Spydertrader or anyone else mentioning to 'feel', 'hope' or be 'nervous' when using the methodology correctly.

Please understand this is not an 'attack', just pointing out what I get from your post of where you 'are' in the learning process. It is not a 'bad' place to be, but more 'travelling' down the path is required to defeat these demons.

Im used to daytrade type holds and overnight holds or longer holds or holds where you have to give a percentage stop loss are not what I'm used to. I'm used to being in and immediately getting out or getting in and seeing profits right away so I'm in the transition stage right now from that to giving some leweigh before profits are made.

 

[ivob]

I think the 11:05 bar of this morning is a good example of a bar where volume relatively is too low for the volatility/range of that bar. This means: Look for change. I went long somewhere in the middle of that bar (at BO) but then short the next one.

regards,
Ivo

 

[ljyoung]

Quote from ivob:

I think the 11:05 bar of this morning is a good example of a bar where volume relatively is too low for the volatility/range of that bar. This means: Look for change. I went long somewhere in the middle of that bar (at BO) but then short the next one.

regards,
Ivo

Sweet, Ivo. If you're stiil short, YM just punched through the ON low @ 12173 and ES is rushing towards its ON low.

lj

 

[ivob]

Quote from ljyoung:

Sweet, Ivo. If you're stiil short, YM just punched through the ON low @ 12173 and ES is rushing towards its ON low.

lj

Hi,

Closed around 1332.

regards,
Ivo

 

[Avi 8]

Quote from ivob:

I think the 11:05 bar of this morning is a good example of a bar where volume relatively is too low for the volatility/range of that bar. This means: Look for change. I went long somewhere in the middle of that bar (at BO) but then short the next one.

regards,
Ivo

Great Ivo!

What I think is more important is your short on the next bar. What does THAT bar show us?

It shows less volatility on relatively the same volume as the previous bar. This to me says to anticipate change.

Again, great job!

 

[ljyoung]

There are some superb examples of what Jack calls "neutrals" in the 5 min ES, the whole way down from 1342.50. Given what YM has done this early PM, it's clear that ES is, so far at least, reluctant to break that ON low.

lj

Yoiks!! It just breached it (after YM showed the way, of course).

 

[Avi 8]

Quote from ljyoung:

There are some superb examples of what Jack calls "neutrals" in the 5 min ES...

There are some superb examples of what Spydertrader calls "channels" and "FTTs" and "Formation BOs" during the "Point 1" (at 1110) and the "Lateral Formation" (starting at 1125) which resulted in a new, how do you say, "Point 3" down.

Here is some photoshop work I just did:
<img src=http://elitetrader.com/vb/attachment.php?s=&postid=1784462>

 

[ivob]

Quote from Avi 8:

Great Ivo!

What I think is more important is your short on the next bar. What does THAT bar show us?

It shows less volatility on relatively the same volume as the previous bar. This to me says to anticipate change.

Again, great job!

That bar shows FTT to me (11:10)
11:05 just made me think: okay, we have point 3 up, tall bar but volume is actually not very high as I would like to see. That's really all it says because there are numerous examples in the market where a bar like that is taken out by a high volume bar on the next one. So it's the two bars together placed in the context (imo) that say change.

It happens BTW right after a point 3 up which is not very common and hard to trade especially after I just went long but hey, that's the market.

regards,
Ivo