Iterative Refinement

Quick question on equities: If the low band volume is met by 10h30 (or even DU by 11h30) and the price is +5%, do you buy?

I remember seeing a criteria that if the gap is more than 5% then there is no buy signal, but I understood that to mean the opening gap.

I ask because for two days in a row I see more than one equity that goes up 5%, then hits low band volume, and then a bit later start to go back down. I'm wondering when is the safest entry point here.

I saw that one should buy towards the bottom channel as much as possible. Is this from the daily charts?

My personal opinion is that if it's up 5% it's too risky to buy but I'd like to get some opinions from others as I'm really new at this and still working my way through the journal.
 
Quote from cunparis:

My personal opinion is that if it's up 5% it's too risky to buy but I'd like to get some opinions from others as I'm really new at this and still working my way through the journal.
More...

The market doesn't care about anyone's personal opinion. In fact, if you keep reading you'll find these same questions asked and answered previously. Again, you must learn the fundamentals of the system, and of the P-V relationship, rather than, attempt to follow a 'laundry list' of instructions. The former will provide you with an ability to trade any market. The latter teaches you how to follow directions, and it doesn't do a very good job of that. Doing is what internalizes the process.

Crawl. Walk. Run. Then fly.

- Spydertrader
 
Quote from ivob:

Hi,

Did anyone have problems with today's market specifically?

regards,
Ivo
More...

This bar (arrowed) caught me by surprise: I was waiting for a p3 up. I saw the "change" (increasing red prv) too late and reacted next bar. fortunately, the following down is a normal 3 points channel.
Lucky me.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1808461>
 

Attachments

Got into LXU today towards the end of the day. Was in Dry Up and hoped it would hit FRV which it didn't but it also had the makings of a Bruno R setup. Hoping to see increased black tomorrow but watching for decreased black in which case Ill immediately get out of what should be a non-dominant traverse.
 

Attachments

SNDA also had a solid breakout today. Anyone catch this using any indicators besides Guassians and channels(beginner and intermediate signals)?
 

Attachments

Quote from ericta:

This bar (arrowed) caught me by surprise
More...


Here is a video tick replay of the ES and YM of the time you posted. The video is about 10 minutes total but you can just take the slider and move where you need to. Maybe this will clarify what you had in question. Annotations are in place already, can be ignored or use to see what you may have missed.


http://www.screencast.com/t/eQZN2CkZ9Fb
 
Question about pennants and laterals. How exactly are you sure the direction for continuation when a pennant or lateral forms? A lot of the time in stocks a pennant will form and there will be a lot of clutter before a meaningful move is made again. What is a good rule of thumb for deciding which direction you are going(and expect to continue) when pennants or laterals form? Does it all go by the Guassians?

Comments needed
 
You must log in or register to reply here.
Back
Top