Iterative Refinement

[Tums]

March Exercise (part 2)

WMCN -- Now What !?

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1820210">

 

[Spydertrader]

Quote from LittleMac:

Spyder, Padawan. I have posted my chart of STAR. Notice the very long lateral that has shown its head. Is this a solid example of a lateral formation/pennant starting after a dominant trend has established itself(the first increasing black) but then forming a non-dominant traverse on its own(purple lines)?

Lateral Formations begin on a Dominant Traverse. However, once Price breaks the Lateral Boundaries (set by the high and low of the first bar of the formation), a Lateral Formation no longer exists. In its place, we have Lateral Movement. In addition, you completely ignored the increasing red Volume Bar on you Guassians - which might have some importance. See attached.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1820244>

 

[LittleMac]

Quote from Spydertrader:

Lateral Formations begin on a Dominant Traverse. However, once Price breaks the Lateral Boundaries (set by the high and low of the first bar of the formation), a Lateral Formation no longer exists. In its place, we have Lateral Movement. In addition, you completely ignored the increasing red Volume Bar on you Guassians - which might have some importance. See attached.

Wow Spyder I must admit its really something how can you can annotate a chart down to the finest levels. The chart looks spot on except for one channel not to nitpick or anything since its probably correct but The first red down channel that occurs in the lateral formation.... I cant connect it to the Guassians. Is the answer that you'd just have to go to a finer fractal like a 60 min or 30 min to see there's a channel there. I know its not a big deal but I want to cover all bases.

 

[Spydertrader]

Quote from LittleMac:


The first red down channel that occurs in the lateral formation.... I cant connect it to the Guassians.

With Equities, we often 'see' overnight 'gaps' in one direction or another which do not materialize intraday on Futures Charts (except at the 'open'). Note the increasing red Volume Bar within the red down channel. Now, note the prior bar 'close' and compare it to the increasing red bar 'open'. See the 'gap' down? Price 'gaps' down on increasing red Volume.

- Spydertrader

 

[Breakeven]

Quote from Tums:

March Exercise (part 2)

WMCN -- Now What !?

Trying to get this attachment again...

I see two possibilities.

 

[The Flaw]

Is this not a valid channel because increasing black volume never followed.

 

[Avi 8]

Quote from Breakeven:

...I see two possibilities.

The first is not correct, the pt3 down is ALREADY confirmed by the inc red vol.

Remember, there are always FOUR possibilities, at least two of which always go in your favor.

 

[Spydertrader]

Quote from The Flaw:

Is this not a valid channel because increasing black volume never followed.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1820911>

 

[Avi 8]

Quote from The Flaw:

Is this not a valid channel because increasing black volume never followed.

You asked '2' questions, I guess you will get '2' answers.

<img src=http://elitetrader.com/vb/attachment.php?s=&postid=1820915>

 

[Breakeven]

Quote from Avi 8:

The first is not correct, the pt3 down is ALREADY confirmed by the inc red vol.

Remember, there are always FOUR possibilities, at least two of which always go in your favor.

I am confused.

Are you saying that in the first annotation, more inc red is not what must come next?

What are the other two possibilities?