Iterative Refinement
- Thread starter Spydertrader
- Start date
Not to muddy the waters, but in this "particular" example, it's: look at the size of that bar compared to it's low volume, something's up - change. But based on the extreme movement alone I'd have drawn in a Pt 3 first and see what happens later. Though I'd expect it to continue up after that action. Splitting the volume bar in my head (up vs. down volume) just made the move more suspect, as from that view it would seem even less volume in each direction. Guess I'd have to check the YM on that one
The following posts are in reference to the 11-15-07 ES chart..
Since, by the close of the bar (#5) in question, you decided you did not have a Point 3 I took your answer to mean that since price closed within the previous bar it could NOT be a new Point 3.
Bar 5 moved in the direction (up) of the new channel on +PRV.
Can you clairify my misunderstanding???
Thanks for your continued patience Spyder
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Thanks Spyder...
Just wondering if you did that with the first channel of the day today?
I had bar 5 today as point 3 and watched it go a bit lower on bar 8.
Did you initially have bar 5 and just "fan out"on bar 8??
Before the close on Bar 5, I did have that as a Point Three. Then, I watched as price closed within the previous bar on Bar 5 and again on Bar 6. As a result, I could see the Price action continue to move laterally, and as such, knew we did not have a Point Three in place. By the close of Bar 5 I simply deleted the line, and continued to wait for lateral movement to finish - setting in our Point Three 15 minutes later on Bar 8 with the formation of an Outside Bar.
- Spydertrader
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Since, by the close of the bar (#5) in question, you decided you did not have a Point 3 I took your answer to mean that since price closed within the previous bar it could NOT be a new Point 3.
Bar 5 moved in the direction (up) of the new channel on +PRV.
Can you clairify my misunderstanding???
Thanks for your continued patience Spyder
**************************************************
Thanks Spyder...
Just wondering if you did that with the first channel of the day today?
I had bar 5 today as point 3 and watched it go a bit lower on bar 8.
Did you initially have bar 5 and just "fan out"on bar 8??
Before the close on Bar 5, I did have that as a Point Three. Then, I watched as price closed within the previous bar on Bar 5 and again on Bar 6. As a result, I could see the Price action continue to move laterally, and as such, knew we did not have a Point Three in place. By the close of Bar 5 I simply deleted the line, and continued to wait for lateral movement to finish - setting in our Point Three 15 minutes later on Bar 8 with the formation of an Outside Bar.
- Spydertrader
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In the future, linking to the chart / post you've chosen to reference saves me the time of searching for it. Creating an environment where I can answer questions easily improves the likelihood of a response.
I have linked the chart here for those with an interest.
Rather than viewing the Bar (#5) as not having a Point Three in place, I should have clarified in the following way. "I felt Price hadn't finished moving from Point Two to Point Three."
As I said then, I viewed the whole area as Lateral Movement. Note also how I include Bar #6 in the analysis provided at the time. In other words, Bar #5 (signal) and Bar #6 (confirmation) provided the input.
In the current discussion, you reference a single bar. Back then, I referenced two bars. Also, adding "Price had yet to finish moving from Point Two to Point Three" probably adds the clarity needed. Had I inserted those words back then, instead of now, you may not have had any confusion.
Hopefully, the above information provided the clarity needed. Too bad I didn't think to type it in back in November.
- Spydertrader
ES DAILY CHART MARCH 6 2008
and thank you for this...
http://www.elitetrader.com/vb/showt...perpage=6&highlight=refinement&pagenumber=216
I apologize for not linking the chart to my previous post. I am not exactly sure how to do it. Thank you for taking the time to find it.
What lead you to believe this?
I do not see a difference in the exercise Tums provided (proir to your modification) and the first 5 bars from 11-15-07.
In both cases price moved in the DOM direction on +PRV only to close back within the previous bar.
I reference a single bar because that is the Bar I personally would have had to make a decision to take action on or not.
At sometime during Bar 5 one would have to make a decision if we had (by definition) a Point 3 or not without any input from Bar 6.
This would be more critical for those entering the market at Point 3's then to those already in the market for whatever reason.
If one was already in the market and viewed Bar 5 as starting the "lateral movement" the action for most is to "hold" (no action).
Please dont take the above questions/comments as confrontational. It is out of a sincere willingness to learn that I continue to seek clarity.
Thank you again for your time.