Iterative Refinement
- Thread starter Spydertrader
- Start date
Thought this was a good example of a 'YM telegraph" trade. Some thoughts at the time:
- Mkts had been in extended downtrend all a.m. and now entering lunch period (seems like noontime retraces are becoming rather commonplace these days)
- YM 12:04 bar showed a bit less volume, followed by 12:06 bar on markedly lower vol (heads up alert for FTT) Also, during this time, the 12:00 ES bar was showing signs of exhaustion (context - check out strong vol on reversal bar beginning the previous non-dom traverse), which told me to switch to YM
- 12:08 YM PRV started coming on strong, so BUY ES
Result: nice multi-point trade
- Mkts had been in extended downtrend all a.m. and now entering lunch period (seems like noontime retraces are becoming rather commonplace these days)
- YM 12:04 bar showed a bit less volume, followed by 12:06 bar on markedly lower vol (heads up alert for FTT) Also, during this time, the 12:00 ES bar was showing signs of exhaustion (context - check out strong vol on reversal bar beginning the previous non-dom traverse), which told me to switch to YM
- 12:08 YM PRV started coming on strong, so BUY ES
Result: nice multi-point trade
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1827454>
LittleMac, I use eSignal and see the big gap you're referring to on the 30 minute chart. On the daily chart I would line my channels up as Spyder has suggested. For the 30 minute chart, you could ask someone how to treat gaps (since I do not know
).Regarding the sym pennant breakout on decreasing volume, I would recommend a review of Spyder's post here that begins with " Trading Breakouts on decreasing Volume..."
http://www.elitetrader.com/vb/showt...perpage=6&highlight=refinement&pagenumber=193
On today's bar, it appears that WMCN didn't.
I didn't copy and paste the entire commentary because it may be helpful to review the context surrounding the comments Spyder made. The five posts on flaws and internals from the futures journal is helpful as well. Good trading to you.
Whoops, I was looking at a gap on 2/20 instead of the bars you had difficulty with. It ok, because Spyder already answered. Despite my issues with eSignal, the 30 min. fractal of ANW I'm looking at shows 32.04 as the high on 2/25. If it's any consolation, the volume on my chart is showing increasing instead of decreasing like it ALWAYS does. lol Hope that helps.
Quote from callmate:
Sorry about the messy chart, I found it difficult to match the gaussians today, very hard day. I traded 1 ES contract but 2 accounts.
Am I reading the log correctly - all long trades?????
Nice work btw, I bowed out early. The 11:00 short was about it for me. Otherwise, way too much overlap on those bars for my taste.
The Gaussians do support the Orange Channel.
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1827653>
Guava,
On the last three IBGS's on your chart, could you explain why they are IBGS's? They look like pretty directional to me, so I don't follow.
Thanks - EZ
, however, in reviewing the chart at EOD; the four bar lag between the selected PT3 and the arrival of increasing Volume did not appear to confirm the PT3 at the point I drew it.