Iterative Refinement

[LittleMac]

Haroki or Anyone for that matter,

In my chart of DSL I have two laterals. First off, are they correct? Second off in the circled area is it correct to widen my channel from the blue to the white channel because of this lateral movement?? Third the red bar in the square, is this a Formation BO, a Channel BO, or both.

I feel like equities constantly has more sideways mess and lateral movement and sloppy Guassians on the daily than the E-minis but I keep telling myself to push through and annotate, annotate, annotate and then Ill be able to annotate almost any chart but again I consistently get demoralized when moving to one of the many equities charts that confuse me.


Some things that always make me feel lost are when

1. My Guassians don't match my channel pts 1,2,3(I find myself inventing)

2. A B2B or R2R occurs in the Guassians and on the channels but from there it reverses again such as an R2R followed by immediate increased black past the original R2R. (I was led to believe a FTT/BO can only occur after pts 1,2, and 3 have evolved.

I'm charting til 3a.m. some nights and getting stuck dozens of times throughout this period.

 

[TIKITRADER]

ES only. . . NICE !!! Avi 8 - Awesome !!

 

[Avi 8]

Quote from ehorn:

In AVI's case "IBGS" has multiple meanings -

"Intra-Bar Gaussian Shift"
or
"I Be Gettin' Somemoney!"

Nice work Avi!

ROFL!

I like! I like!

 

[TIKITRADER]

ES Daily chart 2/21/08

 

[Miracle]

Being a lurker on this and other Jack and Spyder's threads for a while, I am amazed and inspired by their work and dedication. What I've learned are not only trading skills but also thinking process. This is a true miracle!!! Thank you everyone who contributes in those JH threads!!!

Attached is my first chart from NT replay. I need some critics to help me

 

[Padawan]

Quote from Miracle:

Being a lurker on this and other Jack and Spyder's threads for a while, I am amazed and inspired by their work and dedication. What I've learned are not only trading skills but also thinking process. This is a true miracle!!! Thank you everyone who contributes in those JH threads!!!

Attached is my first chart from NT replay. I need some critics to help me

Hi Miracle, you did a really nice job. You should've seen my first chart, lol.

I wouldn't describe myself as a "critic" but my suggestion is try to make the peaks and troughs of your gaussians correspond to the peaks and troughs of price within the channels that you draw. I attempted to demonstrate this by drawing how I see the gaussians. Don't forget to add the lateral formations (I missed one at the open). There were at least a few additional channels you might've drawn so you'll find some right trend lines added to your chart to show where. I didn't add the LTL's for fear that the angles would be off and it would look hideous.

As far as the gaussians go, sometimes the dominant volume will shift from increasing red to increasing black (or increasing black to increasing red) on adjacent bars. You can see this when there's an upward sloping red gaussian line followed directly by an upward sloping black gaussian line or vice versa.

This probably isn't perfect (and gaussian annotations sometimes differ from chart to chart), but I hope it helps some. In addition to posting charts here, a thorough review of Spyder's charts from the futures journal is the best way to go as a supplement to your practice. Welcome.

 

[Avi 8]

Quote from ivob:

...We are looking for a new point 3 up, not a point 2 up, right?...

Well you could say the IBGS bar was pt1 and pt2 with the BO bar a pt3 on inc blk vol - this is refered to as a 'chubby' tape. So what happened on the pt3 bar in this chubby tape? Did it VE? What comes next after a VE?

...(I did not know we had to consider this...)
So are we looking for a point 3 up or a point 3 down??...

Both, I am sure you have seen competing channels where ONE bar could be either a pt3 up OR down.

Things always get messy when I start looking for 2 things at the same time.

A couple days ago I posted a 'quiz' concerning the 4 possibilties at any one time. Ferdinand got the first one, can you think of anymore?

Do you really care about a point 3 down? We are waiting for a point 3 up because we had breakout on increasing volume. The sequence is we wait for a point 3 up...

You betcha! That IS what I was waiting for. But the market ultimately will decide what it wants to do. You mention one possible sequence, the market actually showed another. Are there anymore to consider? What would they look like?

 

[Avi 8]

Quote from ang_99:

whats your definition of an intra bar gaus. shift?...

Watch price. What did it do on that bar? It opened, then headed lower than the previous bar, then stopped and headed higher. Higher than it's open. Did we just see 'change'.

Because I'm not sure how this bar told you we had change as opposed to a simple channel non dom retrace. Unless what your saying is a retrace is change. I'm talking about change from down trend/channel to an up one.

What is continuation in a downtrend? Price heading lower? If price stops heading lower is that not change?

Where does the 'change' happen for a new channel direction? On point 1?

What can make a point 1? FTT? VE? LTL Bounce?

 

[Avi 8]

Quote from TraderD72:

I was under the impression that, due to the increasing volume in relation to bar 5, you eliminated the possibility of a new UP Point 3 by the close of bar 6.

Is this correct?

No, sorry if I was not clear. The possibility of a new pt3 up is still a consideration on the close of bar 6. What would we 'need' to see for this?

Or are you saying that Bar 7 confirmed this possibility by having INCR RED and also trading below the LOW of bar 2??

All we needed was price at or lower.

Other than trading and closing below bar 2, I am still having trouble seeing the difference between this sequence and the one on bars 8, 9 and 10.

One difference is on bar 7, no pt3 up can happen, whereas on bar 10 we could have a new pt3 down, or a retrace to a new pt3 up.

Did you view bar 10 as a new UP point 3?
Is this because you are using a faster resolutions level?...

No I did not view bar 10 as a pt3, I saw it as a pt2.
I am not using any faster resolutions.

 

[Haroki]

Quote from LittleMac:

Haroki or Anyone for that matter,

In my chart of DSL I have two laterals. First off, are they correct? Second off in the circled area is it correct to widen my channel from the blue to the white channel because of this lateral movement?? Third the red bar in the square, is this a Formation BO, a Channel BO, or both.

I feel like equities constantly has more sideways mess and lateral movement and sloppy Guassians on the daily than the E-minis but I keep telling myself to push through and annotate, annotate, annotate and then Ill be able to annotate almost any chart but again I consistently get demoralized when moving to one of the many equities charts that confuse me.


Some things that always make me feel lost are when

1. My Guassians don't match my channel pts 1,2,3(I find myself inventing)

2. A B2B or R2R occurs in the Guassians and on the channels but from there it reverses again such as an R2R followed by immediate increased black past the original R2R. (I was led to believe a FTT/BO can only occur after pts 1,2, and 3 have evolved.

I'm charting til 3a.m. some nights and getting stuck dozens of times throughout this period.

FWIW - your blue channel gaus look perfect to me, so you've got the basics down. I wouldn't have drawn in the white channel, however. Remember, we need inc volume for a new pt 3, and we don't have that. We could FAN a channel, in this case the blue one, if we had dec black. But we have dec red, so no fanning.

You have dec red, then inc red - think a pt 3 on inc volume and draw in a down channel. Use the last bar in your first lateral as your pt 3 and the price peak from 15 days ago as your pt 1. Do that and you can see that price is going lateral, trying to BO to the upside.

So yeah, I'd say your laterals are valid.