Iterative Refinement

[R/R]

Quote from callmate:

... I realised that I wasn't seeing R2R or B2R as clearly I should.

I know you understand the dominant trend direction, but your annotations in the bars I referenced are reversed. Don't do anything else with these until you see this. Think about the volume trend over the entire traverses annotated by your channels. The left side of the Gaussian ( / ) is the dominant color. Try to understand why you are reversing this.

edit: this post applies to your first chart. I have not reviewed the second one

 

[callmate]

R/R, I think I hear what you are saying. Are you suggesting for time being I simply draw the gaussians at the forest level then worry about fine tuning?

Here is the chart with 1-2-3 . Ok I will go back and get the forest level sorted out.

 

[R/R]

Quote from callmate:

Here is another chart

Why not take one at a time and fix the first one before considering others. You have already posted three days

 

[callmate]

Quote from R/R:

Why not take one at a time and fix the first one before considering others. You have already posted three days

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I had them drawn up last night, I just added the numbers and changed the colours on the 3rd chart now. Ok I will go back to the first chart and see if I can re-do it and post it for further comments.

Thanks for your help, not trying to be difficult, just very very keen to get this one sorted out.

 

[R/R]

Quote from callmate:

Thanks for your help, not trying to be difficult, just very very keen to get this one sorted out.

I can see that, but let's take it methodically, a little bit at a time until there is understanding. Why not re-do the 23 bar area I originally referenced first. I am tight on time right now, but I will PM you and we can work this out later. In the mean time perhaps others will chime in.

 

[callmate]

Quote from R/R:

I can see that, but let's take it methodically, a little bit at a time until there is understanding. Why not re-do the 23 bar area I originally referenced first. I am tight on time right now, but I will PM you and we can work this out later. In the mean time perhaps others will chime in.

Here is the amended chart.

 

[LostTrader]

Quote from jack hershey:
Here are some important helpful suggestions.

Wow! Thanks, Jack! and welcome back!
I've pulled your note off and printed it for re-reading a few times to absorb it all. I certainly appreciate the input.

Got pinged to post the blank chart, so it is attached below. I created it after working with several older records posted, and found that for me, having the day on one page emant I would use it more frequently, and the free-form notation prompted me to write more of what I was seeing.

It has been my impression (and therefore goal) that I needed to get away from simply marking Rs & Bs (heck, they're obvious on the chart!) and more towards noting the formations & events (p1, p2, p3, FTP, FBP, SYM, S/R, etc). Stuff that I would be writing on the chart itself if I could tolerate the tool more.

 

[LostTrader]

Quote from callmate:
I have tried to match the channels with the Gaussians I would be grateful if some of you could look at my chart and provide constructive comments.

Callmate, I would like to chime in on the Gaussians… I mean it all positively and while I am stating basics over again, please bear with me…

Think of it this way: a Gaussian is simply an encoding of the Price & Volume relationship.
Color is dictated by Price, Slope by Volume trend, and end points by Price traverses.
An UP channel consists of /\/ = p1-2-3
And a DOWN channel = /\/ = p1-2-3

Because you don’t have point 3 confirmed until volume rises again on a dominant traverse. This has always clearly communicated the me how to draw the Gaussians. It also explains why I usually draw multiple layers of Gaussians because I almost always have channels within another “forest” channel and each channel must map to a Gaussian.

I expect this will be controversial, but it is based directly on the above definition and the Jokari window. Think about Jack’s Trading cycle (picture is in BMBW). In any channel, there’s a traverse (say, up) and a retrace (down). Per the Trading Cycle (which has all four Jokari Window combinations): Price rises on increasing volume, volume tapers and price peaks & levels = end of traverse. Price falls on lesser volume, volume dries up, prices ceases to move without volume and a low is reached = (end of retrace).

What this communicates is that one Gaussian line = one traverse/retrace = two windows. I was taught to never draw /\ a falling of the same color immediately after the rising – it does not fit the definition of channel which consists of one repeating pair… /\/\ over and over. I do realize that some folks do, and that’s fine. If you choose to do so, simply make certain that it is a conscious deliberate decision and not an accident. Much of the implementation is a personal choice – it must mesh with one’s own personality and trading style or it doesn’t work for the individual. For me, understanding Gaussians this way is logical and it works.

Given all this long-winded chatter, I made some notes on your chart. Respectfully, given this, I believe most of the Gaussians become clear.
I hope to hear back from you....
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1799263>

 

[callmate]

Thanks LostTrader, I think I really have got myself in a twist here, just as well I am seeking help, better late than never.

The dominant trend is down, so I need to show increasing red to decreasing black R2B, R2B, R2B, right ?

 

[nkhoi]

Quote from callmate:

...
Here is the amended chart. [/B]