Price went lower on increasing Volume while breaking an RTL of an Up Channel. What color of Volume creates such an event?
- Spydertrader
Iterative Refinement
- Thread starter Spydertrader
- Start date
Price went lower on increasing Volume while breaking an RTL of an Up Channel. What color of Volume creates such an event?
- Spydertrader
I dont have price breaking out of my up channel on increasing red. The 15:45 bar did go lower on increasing red but that bar close back inside my channel. The next bar leaves my channel but on decreasing red.
Do you have a different situation that what Ive described?
Do you have a different situation that what Ive described?
ESH8 DAILY CHART 2/27/2008
Much of the day had numerous areas of High Bar Overlap. Using only coarse level tools creates a difficult environment on such days as these. However, nice, long periods of Low Bar Overlap also existed today. It is these areas which should be crystal clear. If not, then I encourage a review.
The areas of High Bar Overlap, will become clearer once finer level tools are fully understood. Until then, focusing only on the ES and YM and working to 'see' the right side of the market continues to build a strong foundation.
As I have often said, one cannot perform brain surgery with a pick axe and shovel. Right now, all you have is a pick axe and a shovel, so no 'carving the turns' until you get the scalpals and sutures.
- Spydertrader
The areas of High Bar Overlap, will become clearer once finer level tools are fully understood. Until then, focusing only on the ES and YM and working to 'see' the right side of the market continues to build a strong foundation.
As I have often said, one cannot perform brain surgery with a pick axe and shovel. Right now, all you have is a pick axe and a shovel, so no 'carving the turns' until you get the scalpals and sutures.
- Spydertrader
Yes you do.
Aaaahhh, so Price did BO on Increasing red Volume
And the YM Signals this reversal.
Which forms a Pennant, but the Bar after that went again lower on increasing Volume. Can Price ever go lower on Black Volume?
Yes, and so should you.
- Spydertrader
Quote from Spydertrader:
YM provided a crystal clear signal at exactly 15:48 PM (even earlier if using PRV). When the 15:46 Bar closed, you had Price moving in the dominant direction on decreasing Volume. What does the Jokari Window say to expect? What happened next?
Besides, aren't all those indicators telling you to hold short?
- Spydertrader
Hello,
Sorry but to me this seems a little confusing.
Price moved in the dominant direction on decreasing volume. This means change can be expected. But also 15:46 was a breakout of the RTL and the action is hold.
Then on the next bar RTL is broken again but this bar is also a pennant.
regards,
Ivo
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1810079>
Yes price does leave the channel on increased red like you say, Im just saying that it closed back inside. I'm sure the YM did indicated a reversal, I'm just saying that, as far as Im concerned, this bar closing back inside my channel indicates to me that that channel is still "alive".
I agree with all that you said, I just think I didnt explain myself well.
I agree with all that you said, I just think I didnt explain myself well.
Hello all,
I realize I am WAY behind all you guys, but I thought this would be the place to post this since it is the descendant of Spyder's previous journals. I started a few months ago, but took a break. I am looking to start trading again. I am rereading journal one and working my way through journal two and Jack's journal. I do have a couple of questions though, mostly to do with the way to carry out Spyders excellent summary at the end of Journal I. I'd like to summarize what I do and make sure I have it down, and then ask my questions.
1. Check the stocks on stocktables.com. using Spyder's parameters.
2. Copy these symbols into my Initial Universe Watchlist on wealthlab.com and run Hershey Equities Score Scan v. 5.0.0. Take the stocks that have rank and make sure they fit the following criteria.
a. Have a float less than 60,000,000
b. Have a float greater than 5,000,000
c. Have a 65-day average volume above 200,000 shares
d. Have positive EPS.
3. I copy those stocks into my Hotlist, if they are not already there.
4. Run the Hotlist through the Dry Up (Final) Scan Version 5.0 Script.
5. Take the stocks in Dry Up, and run them through Hershey Equities Chartscript Version 4.2 Script in order to find DU and FRV.
6. Watch the stocks. If a stock reaches DU volume by 11:30, is positive, and has the correct MACD and Stoch, buy it.
7. Continue to watch the stocks. If any reach FRV by 4, are up, have the correct MACD and Stoch, buy them.
8. When to sell. There are two different rules for when to sell. The first set of rules applies to day 1.
1. Sell the stock if it goes negative, loses 2%, or does not reach FRV.
2. After the first day, sell the stock if it loses 5%, 15-30 minutes after the opening on the morning after peak volume is reached, if it reaches my price target, are after 4-5 days.
Please correct any of the above if I have misunderstood anything.
Now for my questions:
1) I am not quite familiar with what would be an acceptable "rank" from step 2. Do I just take the 7's, or anything other than 0's?
2) In Step 2, is there a way to automate the "checking" for the four criteria? I have found some spreadsheets that are supposed to do so, however I run office 2007, and the macros do not seem to work quite right. If there is not a way, I'll just do it manually at quote.com, unless someone can point me towards a better resource.
3) My final question has to do with trendlines. I have been practicing them in my spare time, just trying to see if I can understand and draw them. How much attention do you pay to these when deciding whether or not to purchase a stock when all signals say go?
Thanks All! I hope my questions are placed in the right forum. If not, please let me know where to go!
I realize I am WAY behind all you guys, but I thought this would be the place to post this since it is the descendant of Spyder's previous journals. I started a few months ago, but took a break. I am looking to start trading again. I am rereading journal one and working my way through journal two and Jack's journal. I do have a couple of questions though, mostly to do with the way to carry out Spyders excellent summary at the end of Journal I. I'd like to summarize what I do and make sure I have it down, and then ask my questions.
1. Check the stocks on stocktables.com. using Spyder's parameters.
2. Copy these symbols into my Initial Universe Watchlist on wealthlab.com and run Hershey Equities Score Scan v. 5.0.0. Take the stocks that have rank and make sure they fit the following criteria.
a. Have a float less than 60,000,000
b. Have a float greater than 5,000,000
c. Have a 65-day average volume above 200,000 shares
d. Have positive EPS.
3. I copy those stocks into my Hotlist, if they are not already there.
4. Run the Hotlist through the Dry Up (Final) Scan Version 5.0 Script.
5. Take the stocks in Dry Up, and run them through Hershey Equities Chartscript Version 4.2 Script in order to find DU and FRV.
6. Watch the stocks. If a stock reaches DU volume by 11:30, is positive, and has the correct MACD and Stoch, buy it.
7. Continue to watch the stocks. If any reach FRV by 4, are up, have the correct MACD and Stoch, buy them.
8. When to sell. There are two different rules for when to sell. The first set of rules applies to day 1.
1. Sell the stock if it goes negative, loses 2%, or does not reach FRV.
2. After the first day, sell the stock if it loses 5%, 15-30 minutes after the opening on the morning after peak volume is reached, if it reaches my price target, are after 4-5 days.
Please correct any of the above if I have misunderstood anything.
Now for my questions:
1) I am not quite familiar with what would be an acceptable "rank" from step 2. Do I just take the 7's, or anything other than 0's?
2) In Step 2, is there a way to automate the "checking" for the four criteria? I have found some spreadsheets that are supposed to do so, however I run office 2007, and the macros do not seem to work quite right. If there is not a way, I'll just do it manually at quote.com, unless someone can point me towards a better resource.
3) My final question has to do with trendlines. I have been practicing them in my spare time, just trying to see if I can understand and draw them. How much attention do you pay to these when deciding whether or not to purchase a stock when all signals say go?
Thanks All! I hope my questions are placed in the right forum. If not, please let me know where to go!
A. Do the Fundamental Culling before you do anything else. It will save you loads of time.
B. Forget Score for now. Focus on Stocks with rank. These stocks cycle a minimum 5 times in six months for 20% or greater gains (Up runs) occuring over 6 to 8 days.
C. WHatever stocks meet the fundamental and rank criteria place into a Final Universe.
D. Scan the Final universe for stocks in Dry Up.
E. Move the 'buy time' for Stocks breaking out of Dry Up to 10:30 AM
Sevens and Zeros represent score not rank. Use the Rank Scan to locate all stocks with rank (which have already passed the Fundamental Culling Process).
If you can use Qcharts, you can manully cull via a Quotesheet. Also, I believe a few java based applications exist which allow for automated culling.
As Nwbprop pointed out to me in Journal I, Trendlines are invaluable when it comes to this method - even with equities. I recommend learning to draw them - along with Gaussians.
Welcome back, and yes, you've found the right place.
- Spydertrader