Iterative Refinement

[ivob]

Okay, so the correct way of thinking is:

1. ES shows VE so we look at YM

2. YM shows decreasing volume in dom direction so we anticipate change

3. Price moves up, so we go long immediately

4. Next bar is a pennant, we hold

5. next bar is higher volume and we break the pennant on the downside so we reverse



regards,
Ivo

Quote from Spydertrader:

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1810079

 

[Spydertrader]

Quote from ivob:

Okay, so the correct way of thinking is:

1. ES shows VE so we look at YM

2. YM shows decreasing volume in dom direction so we anticipate change

3. Price moves up, so we go long immediately

4. Next bar is a pennant, we go look at the YM because the ES said to do so.

4a. Follow YM Signal, if no signal, seek data from 'fine tool set' (lesson for another day)

5. next bar is higher volume and we break the pennant on the downside so we hold because either the YM said go short in 4a, or the STR-SQU did (STR-SQU lesson for another day)

 

[Jesus_Freak]

Quote from Spydertrader:



- Spydertrader

Spyder,
Thank you very much for your prompt response and encouragement . I have found the yahoo java screening program and it will make this whole process MUCH easier .

I am looking for the answer to the following question in the journals, but maybe you can help out a little bit more. What is a good "rank" when putting the stocks through the rank scan? Thanks!

JF

 

[LittleMac]

RWT had solid little breakout this morning and a signal with Unusual Volume but it plummeted back down. I didn't get in but if I had Id be pretty upset. How do we avoid these situations. Is there something you can see coming..

 

[TraderD72]

In real time did anyone view the 3:20pm bar as potential FTT??

The 3:15pm bar heads higher on -PRV then the 3:20pm heads higher and then reverses, closing below its open, on +PRV.

Thoughts or comments??

 

[Spydertrader]

Quote from Jesus_Freak:

What is a good "rank" when putting the stocks through the rank scan?

Rank maintains a binary function, and not, a gradient one. In other words, we focus on stocks that have rank, and ignore those without it. Currently, only 80 companies out of all companies listed on the NYSE, NASDAQ and AMEX have rank (and meet the fundamental criteria).

- Spydertrader

 

[forty6n2]

Quote from LittleMac:

RWT had solid little breakout this morning and a signal with Unusual Volume but it plummeted back down. I didn't get in but if I had Id be pretty upset. How do we avoid these situations. Is there something you can see coming..

I was also monitoring RWT and was watchig for a pt. 3 but saw a r\/r on the 15 min fract. hope this helps man but i'm still a beginner.

 

[Spydertrader]

Quote from LittleMac:

How do we avoid these situations. Is there something you can see coming..

RWT formed an Outside Bar. The Futures Journal contains a discussion on what to do in such situations. In addition, Ross' Rule would have kicked in rather early. Lastly, Price broke through the RTL of the down channel, and then returned to the down channel (FBO).

Were I you, I'd begin a review of the material provided in the past (some of which others have already recommended to you) in an effort to build a strong foundation with respect to the methodology fundamentals.

- Spydertrader

 

[Spydertrader]

Quote from TraderD72:

Thoughts or comments??

Note the Ym during the same time period. If we do view the 3:15 ES as an FTT then we have a Down channel on the YM confirmed by the 3:24 bar with increasing red Volume. However, this bar also forms an FTT of the down channel on the YM. The following YM breaks higher on increasing black Volume and creating a Point Three Up Channel on the YM.

- Spydertrader

 

[TraderD72]

Quote from Spydertrader:

Ym ...YM...YM...YM...YM.

- Spydertrader

Ugh! Again with the YM...lol....

Starting next month maybe I need to put it back up on my screen.