Iterative Refinement
- Thread starter Spydertrader
- Start date
may I suggest...Quote from ehorn:
Dam Spyder, you dont miss a thing! I totally missed that OB and I was NOT annotating in RT. Add that to the list
http://www.elitetrader.com/vb/showthread.php?s=&postid=1737681&#post1737681
Thanks for this contribution. I use it and it works great.
Quote from ehorn:
Dam Spyder, you dont miss a thing! I totally missed that OB and I was NOT annotating in RT. Add that to the list
About a year ago, I suggested, at that time, that profitability wasn't the correct metric to use in order to determine if "you got it" or not. Profitability is the metric used when one knows they understand everything. Until then, each trader must evaluate all four parts of the M-A-D-A process in order to insure a rock solid foundation for each component. Annotations and drawing channels fall into 'M' for Monitor. As we have seen this evening, rapidly and correctly annotating all charts provides the context one needs to 'see' the market clearly. As such, the correct metric for determining if one exceeds the requirements for passing the 'M' component is not 'thinking' one annotates correctly, but actually producing timely and appropriately annotated charts. Within enough time and repitition, this drill enables the trader to 'see' the trends and changes within them, without the need for drawing channels.
Also this evening, we have seen the value of a strong foundation in the first 'A' of M-A-D-A - which stands for Analyze. Knowing the sequences of what must come next (as well as the converse) for all context, knowing the permissions for YM and knowing the Price and Volume sequences as Price moves from Point One, to Point Two, to Point Three and beyond all fall into the Analysis component. A trader needs a rock-solid foundation here as well. Without it the market can appear to provide conflicting signals, where to the trained eye, clarity exists. The metric used here to determine a trader has exceeded expectations involves the ability to actually know what must come next - without even thinking.
Last fall I posted on the need for everyone to devlop the critical thinking skills required to perform an accurate and honest self-analysis of where focus needed application - and onto which component of the M-A-D-A Process. This advice still applies.
I hope everyone found tonight's exercise helpful.
Now, everyone should have the ability to walk through the rest of the way on their own, but just in case, we will schedule a live session to review this time period in the not too distant future.
- Spydertrader
Higher High and Lower Low = Outside Bar
Someone may have had a typo if they posted something else.
- Spydertrader
On my chart, bar 5 (started at 12:30) ES fails to BO of bar 1's Lateral Formation (on incresed red volume), and sents us back to YM, where the 12:30 bar, in spite of its increased red volume remains inside the YM's lateral Formation => CONTINUATION.
YM 12:32 bar: pennant (lower volume, high enough not to anticipate a flaw) => CONTINUATION
YM 12:34 bar: BO up of Lateral Formation on increasing black volume: B2B => CHANGE to LONG. This is about 12:36 (end of bar 12:34).
Is it correct, although ES is still inside its Lateral Formation?
YM 12:32 bar: pennant (lower volume, high enough not to anticipate a flaw) => CONTINUATION
YM 12:34 bar: BO up of Lateral Formation on increasing black volume: B2B => CHANGE to LONG. This is about 12:36 (end of bar 12:34).
Is it correct, although ES is still inside its Lateral Formation?
Quote from Spydertrader:
Correct. Now, time to check our annotations to make sure we have properly annotated all charts. The YM bar labelled 'FBO' - isn't it also an Outside Bar? Do we not see increasing red on this bar? Do we not 'see' a resumption of the dominant direction on the ES at this same time? What happens next on the ES?
- Spydertrader