Iterative Refinement

Spydertrader · Feb 9, 2008

Quote from guavaman:

Man this sounds familiar

Well, I should certainly hope it does.

Quote from TIKITRADER:

Thanks for the feedback Spyder.
I post all my experiences here for all to read.
I will only benefit doing so from all the feedback.
Greatly appreciate your response and all your time.

My comments were't directed exclusively at you. With my post, I attempted to move the two discssions, currently at the forefront, a little further long - out of the theoretical and into the actual.

Again, thanks for your input.

- Spydertrader

Abuelo · Feb 10, 2008

The following is from the 1st page of this journal.
=============================
To that end, I want to expand upon past discussions and include Options and Forex, in addition to the Equities and Futures discussions currently underway. For those unfamiliar with the methods under discussion, please review the previous threads listed here:

Journal One â Beginner Equities
Journal Two â Intermediate Equities
Journal Three â Advanced Equities
Journal Four â Futures

In addition, each of the above Journals contains background material which may prove invaluable to the learning process. I recommend a thorough review. Also, for those still trading equities, I posted an explanation of The Final Chartscript in this post.
========================
"...... in this post." at end of last sentence is highlited in red as a link but when I click on it I continually get the message "server not found". Is this link no longer active?

Thanks .... Abuelo.

Spydertrader · Feb 10, 2008

Quote from Abuelo:

Is this link no longer active?

Hershey Equities Chartscript Version 5.0

ljyoung · Feb 10, 2008

Quote from PTVtrader:

couldn't range be the same and volatility be completely different?

There's a nice working definition of volatility here:
http://www.cbot.com/cbot/pub/page/0,3181,1059,00.html#V and then for cruel and unusual punishment (but maybe not) see: Option Volatility & Pricing: Advanced Trading Strategies and Techniques by Sheldon Natenberg.

Fast and dirty, if you look at the absolute price change in the largest fractal in your illustration, it is the same and it = H-L. When you move to shorter fractals, the absolute change isn't. Volatility is independent of sign and hence the use of the word absolute [= absolute value]. Makosgu used the H-L equivalent to construct his Volatility vs Volume tables referenced in "Futures III" and originally in "Questions for Grob/Hershey".

lj

ljyoung · Feb 10, 2008

Quote from Spydertrader:

The following post assumes a trader only uses the ES and YM in conjunction with Price (Channels) and Volume (Gaussians). One need only these two inputs to trade these methods profitably. No need for STR-SQU, DOM, Tic Charts or any MACD or Stochastic Indicators....

Thank you Spyder for a superb, lucid and simple synopsis. The great Einstein said something to the effect that a good explanation should be simple, but not too simple. 'Nuff said.

Bon matin,

lj

TraderD72 · Feb 10, 2008

Quote from Spydertrader:

[As proof of this, everyone should be able to pull up a chart, locate the trade Avi 8 recently posted, and understand why he entered, held and exited. If anyone cannot 'see' the signals, then the time is right for a review. Please post any difficulty which arises from this exercise.

Good trading to you all.

- Spydertrader [/B]

.

Entry...Yes.
Hold...Yes.

Exit...Not exactly sure. Increased volume but price reverses Intra Bar and closes above the mid point of that bar BUT exit was a point or so lower than the close.

Avi or Spydertrader could you please elaborate on the exit and my thoughts.

Thanks.

guavaman · Feb 10, 2008

Quote from TIKITRADER:

I will be attending the NYC Traders Expo next weekend Saturday, February 16.........

I appreciate the fact that those who will be attending the Expo are making the effort and assuming the cost to do so. For those of use who will not be able to attend, I would be very appreciative of any :ah ha" moments or points of clarification that were made when trading with Spyder that might be useful to the rest of the unwashed masses

.

Thanks in advance to all.

-guava

guavaman · Feb 10, 2008

Quote from Spydertrader:

As Price moves from Point One and As price moves toward Point Three, one often receives what appear to be conflicting signals. The appearance of these 'so-called' conflicting signals results out of context. should the resulting changes from Point Two to Point Three occur within the previous channel, one can often 'see' Volume return to increasing Dominant.

Spyder, could you clarify this statement for me. Something seems amiss. My apologies for being obtuse

Spydertrader · Feb 10, 2008

Quote from TraderD72:

Entry...Yes.
Hold...Yes.

Exit...Not exactly sure. Increased volume but price reverses Intra Bar and closes above the mid point of that bar BUT exit was a point or so lower than the close.

Perhaps, you could take a moment to post your thoughts on the Entry and Hold. In this way, others may learn from your insights - just as you now wish to learn from mine (or Avi 8's).

- Spydertrader

Spydertrader · Feb 10, 2008

Quote from guavaman:

Spyder, could you clarify this statement for me. Something seems amiss. My apologies for being obtuse

The quoted section should read Point Two, and not Point One as I had written. I apologize for the typo, and thanks for permitting me an opportunity to clarify.

- Spydertrader