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Iterative Refinement
- Thread starter Spydertrader
- Start date
Quote from TraderD72:
Doesnt any new point 3 require increased (+) PRV AND a CLOSE outside of the last retrace bar??
Is this example the increased RED volume is there however the bar trades below the last retrace bar only to reverse intrabar and closes within the range of that (retrace) bar.
Thanks for this question. A little while back, Avi8 provided excellent examples of how we can analyze the P/V relationship based on the open of a bar and the context of the channel. Now I'm thinking that the same could apply to a bar's close, esp. at pt's 1-2-3 and in formations. Or is this another mix-up of mine? Thanks for the four possibilities, Avi8. I'm starting to see how we should be thinking bar by bar.
Quote from TraderD72:
Doesnt any new point 3 require increased (+) PRV AND a CLOSE outside of the last retrace bar??
According to the logic used to form the question quoted above, how does the following scenario play out?
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1821102>
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Quote from Spydertrader:
According to the logic used to form the question quoted above, how does the following scenario play out?
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1821102>
We fan the RTL. Not sure what else. That's an example of a right to left traverse on a single bar.
Quote from Padawan:
We fan the RTL. Not sure what else. That's an example of a right to left traverse on a single bar.
Let's try this again ...
Quote from TraderD72:
Doesnt any new point 3 require increased (+) PRV AND a CLOSE outside of the last retrace bar??
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1821102>
You appear to agree with the above quoted text, and therefore, assert that the chart snippet does not show a Point Three Down (according to the highlighted logic snippet).
Is this the impression you wanted to convey?
- Spydertrader
Quote from Spydertrader:
Let's try this again ...
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1821102>
You appear to agree with the above quoted text, and therefore, assert that the chart snippet does not show a Point Three Down (according to the highlighted logic snippet).
Is this the impression you wanted to convey?
- Spydertrader
The impression I'd like to explicitly convey is one of uncertainty and ignorance regarding this scenario, but also the impression of trying to "get it."
After a second try or second look, it appears with your question that you're suggesting we do not need a close beyond the last retrace bar to confirm the point 3. We just need to have increasing red volume and for price to have advanced in the dominant direction of the channel. After all, how can we get a VE without a Pt 3? Is this thinking correct?