Iterative Refinement
- Thread starter Spydertrader
- Start date
Yes yesterdays's (3/4/08) chart.
The white arrows indicate the bars I was talking about. The 13:05 bar had a volume of 24,426 and the 13:25 had 24,278.
Price was higher on lower volume.
Even If i took the UP channel Point 3 trade (faster fractal) I could have exited/reversed on the FTT when 13:30 showed + RED PRV.
The 2 white circles were my tip off later in the day for a possible up move.
Guava, yes, flaws only occur in the dominant traverses. However, as I understand it, pennants only occur in the non-dominant traverses (and on decreasing volume). How to resolve when a flaw and a pennant formation happen at the same time (if that's possible) and which traverse it's in is a mystery to me. But I do recall reading (probably in the same post) that pennants are non-dominant and that dips, hitches, and stalls are in the dominant. It was Jack, who said it somewhere...I THINK. I'll try to find where and post it.
Guava, I haven't found the post yet and will be away from the computer for a while. Here's what I think right now until someone corrects these tyro beliefs:
1) Formations are non-dominant traverses, this includes all pennants. However, not all formations are pennants. Because pennants are non-dominant, by definition they occur on decreasing volume (although, there is an example today of a YM sym pennant with increasing volume at 2:38 EST. This may be another data error on my charting platform.)
2) Flaws occur in dominant traverses, but they cannot be labeled as flaws until dominant volume returns and price advances in the direction of the channel. That's how I reconcile having a pennant and a flaw occur "at the same time." When dominant volume pushes price out of the pennant we can label the flaw, whereas we label the pennant on the close of the second bar.
Hope this helps and comments are welcome.
1) Formations are non-dominant traverses, this includes all pennants. However, not all formations are pennants. Because pennants are non-dominant, by definition they occur on decreasing volume (although, there is an example today of a YM sym pennant with increasing volume at 2:38 EST. This may be another data error on my charting platform.)
2) Flaws occur in dominant traverses, but they cannot be labeled as flaws until dominant volume returns and price advances in the direction of the channel. That's how I reconcile having a pennant and a flaw occur "at the same time." When dominant volume pushes price out of the pennant we can label the flaw, whereas we label the pennant on the close of the second bar.
Hope this helps and comments are welcome.
Formations occur on the Dominant Traverse as is evident by the Dominant Volume which creates the first Price bar of the formation. However, a formation can form a Non-Dominant Traverse as often exemplified by an Acclerated Channel. In other words, A Lateral Formation, in its entirety, could represent Price moving in a Non-dominant fashion, but the Formation itself begins on the Dominant Traverse.
Flaws also occur on a Dominant Traverse (with one exception), but often form a Non-Dominant Traverse as exemplified by Accelerated Channels.
- Spydertrader
"Doji's and Neutral Bars" present confusion - only in the mind of those not following what Price and Volume have signaled. Your question fails to bring Volume into the equation. How can one who attempts to trade using the P-V Relationship leave out 50% of the process and expect to 'understand' what the market has signaled?
- Spydertrader