Iterative Refinement

ehorn · Feb 23, 2008

What often has this Volume signature?

Flaw

What must come next?

Assuming we are short - Increasing Red Volume

What must come next if we sit on the wrong side of the market?

Increasing Black / BO of upper bound of the Lateral / BO of the channel

Spydertrader · Feb 23, 2008

Quote from ehorn:

Flaw

Aren't you lucky the web site has an edit function.

- Spydertrader

ehorn · Feb 23, 2008

Quote from Spydertrader:

Aren't you lucky the web site has an edit function.

- Spydertrader

I sure am, I misread your question about the huge volume bar. Then went back and said wait a minute (he said disparity)

The peak volume bar proceeding the VE would have me looking for change though.

Atari · Feb 23, 2008

I'm gonna say a spike odd harmonic.

Spydertrader · Feb 23, 2008

Quote from ehorn:

The peak volume bar proceeding the VE would have me looking for change though.

Sure. Now the trick becomes to anticipate the correct kind of change. By that I mean, what sequence of events often occurs when we see huge disparities in Volume (like say, 40% to 60% of the previous bar)?

- Spydertrader

ehorn · Feb 23, 2008

Quote from Spydertrader:

Sure. Now the trick becomes to anticipate the correct kind of change. By that I mean, what sequence of events often occurs when we see huge disparities in Volume (like say, 40% to 60% of the previous bar)?

- Spydertrader

I do not know the answer to this question? Low volatility bar? inside bar? retrace? a pause or breather before continuation?

bi9foot · Feb 23, 2008

Quote from Spydertrader:

Sure. Now the trick becomes to anticipate the correct kind of change. By that I mean, what sequence of events often occurs when we see huge disparities in Volume (like say, 40% to 60% of the previous bar)?

- Spydertrader

A very small retrace or bit of a lateral move (of a short duration) and attempt to resume the price move in dominant direction.

Spydertrader · Feb 23, 2008

Quote from ehorn:

I do not know the answer to this question?

Yes you do.

It's the same answer as you posted above. Flaws often materialize when huge disparities in Volume exist. What is more, you already know what type of flaw it cannot be. Hitches and Stalls are single bar events (and often find themselves hidden by Pennants). HVS has alternating red and Black decreasing Volume Bars. CCC exists in very low Volume conditions. None of these things exist in the chart I posted so, what remains?

Once you know the answer, you know what must come next, as well as what must come next if you sit on the wrong side of the market.

- Spydertrader

P.S. If you really didn't know everything I posted in this post, then guess what? You just figured out where you need to apply focus in order to create improvements to your trading.

TIKITRADER · Feb 23, 2008

Flaw: and where do flaws take place? dominant or non dominant traverses?
What do we look for after a flaw?

edit: I was on skype chat when I wrote this response, posted , then noticed Spyder's post . Didn't cheat, but funny.

nkhoi · Feb 23, 2008

Quote from Spydertrader:

Sure. Now the trick becomes to anticipate the correct kind of change. By that I mean, what sequence of events often occurs when we see huge disparities in Volume (like say, 40% to 60% of the previous bar)?

- Spydertrader

hm.. according to this post http://www.elitetrader.com/vb/showthread.php?s=&threadid=83604&perpage=6&pagenumber=893
10% = flaw, 90% = FTT but 40%-60% could be flaw , could be FTT, wait for more clue?