Iterative Refinement

[Jander]

Quote from Spydertrader:

You described the market events surrounding when you know the market signals continuation and when you 'see' the market has signaled change. Now, what happens in between these points in time. Here, you'll find the dominos.

- Spydertrader

prv hints at decr. volume .. ym shows change -- i am avoiding any finer resolution tools

 

[Spydertrader]

Quote from Jander:

prv hints at decr. volume .. ym shows change -- i am avoiding any finer resolution tools

The answers reside on the ES and the YM 5 minute and 2 minute charts. No 'fine resolution' tools required. Ask yourself,

"What is the first thing which must happen? What first domino must always fall?"

Then, think of the second, and the third, and so on. At what point then do you notice change. Could it be that events have unfolded prior to your definition of change?

Hint: You can't 'see' it on a static end of day chart.

- Spydertrader

 

[ericta]

Quote from TIKITRADER:

ESH8 Daily Chart.

What must come next?
for Wednesday, March 12 / 2008 ...

Did not, So we expect the trend to change.


What must come next?
For Thursday, March 13 / 2008.

Hi Tiki,

I think your last black tape serves no purpose for daily chart trading. what makes you think pt3 up has been established? Is it from intraday price action?

ericta

 

[mephistoII]

Quote from cnms2:

... A good example of the usefulness of this idea is e.g. Spydertrader's remark that today was a black volume bar (not a red one as it was on your chart).

Concerning today's daily bar, I need to ask (anyone) why it should be colored black? Is it solely for the fact that price reached a higher high? As much as I can appreciate the simplicity of that answer, it seems to me that one would be overlooking other important info, such as a lower close (compared to previous bar's close) resulting from an IBGS. Thanks for any clarificaton.

 

[Jander]

Quote from Spydertrader:

The answers reside on the ES and the YM 5 minute and 2 minute charts. No 'fine resolution' tools required. Ask yourself,

"What is the first thing which must happen? What first domino must always fall?"

Then, think of the second, and the third, and so on. At what point then do you notice change. Could it be that events have unfolded prior to your definition of change?

Hint: You can't 'see' it on a static end of day chart.

- Spydertrader

Thanks for your patience and direction... Having a mental block, Im gonna sleep on it

 

[Spydertrader]

Quote from mephistoII:

Concerning today's daily bar, I need to ask (anyone) why it should be colored black?

Price made a higher high. What color of Volume pushes Price higher?

- Spydertrader

 

[mephistoII]

Simple enough

No doubt this has been discussed previously, but then, how does one attribute 'color' to an outside bar, please?

 

[Spydertrader]

Quote from mephistoII:

No doubt this has been discussed previously, but then, how does one attribute 'color' to an outside bar, please?

Pull up some charts. Note the context. What does the market tell you with respect to outside bars?

- Spydertrader

 

[mephistoII]

Thanks Spy - still confused with that idea, but considering the 'day' and the time, I would hope better things await you this evening

 

[cnms2]

I suggest reviewing the 6/20/07 chat with Spydertrader, especially the final part starting about 2:50 pm, where he explains to Easybeat how to think WMCN.

Read the .doc attachment to Tums' post.

Easybeat's conclusion:

easybeat (Jun 20, 2007 3:34:04 PM)

4 possibilities, decr red confirms the uptrend (and that in fact was an FTT), decr black confirms the FTT, incr black means prolly had intrabar gauss shift and went from decr to incr in same bar, incr red means it wasn't an FTT and was instead a flaw



Spydertrader (Jun 20, 2007 3:34:35 PM)

correct



easybeat (Jun 20, 2007 3:35:08 PM)

whew, tks, the key is knowing what each possibility reveals



Spydertrader (Jun 20, 2007 3:35:21 PM)

then you move to the next phase "What do I need etc etc" for the next bar

glad to help