Iterative Refinement

MY ES for today. Considering it is a pre-FOMC day, the trends were quite orderly. Of course it is also a post FOMC panic day, so perhaps that's why... :)
the yellow horizontals are just the morning hi/lo as I was curious to see the BO (or FBO as it were)
 

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Quote from Spydertrader:
I see increasing black Volume after my Blue Channel Point Three.
- Spydertrader
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Well, yes, but... :confused: I guess I need to understand this a bit better, please.

I thought that (when changing trend) the sequence is
pt 1 - \ - / - pt 2 - \ - pt 3 - /
in other words, to get from down to up, one needs rising black (B2B) to make the pt2 as well as later rising black to confirm pt3...

Seriously, do you believe that the B2B is not required as part of the pt1 to pt2?
I used to draw channels that way, but quit when I starting aligning the price channels with gaussians. Learning the sequences correctly is my current study, so I deeply appreciate your views.

Thanks!! and thanks for continuing to post your charts - it helps me study.
 
Quote from LostTrader:

I thought that (when changing trend) the sequence is
pt 1 - \ - / - pt 2 - \ - pt 3 - / in other words, to get from down to up, one needs rising black (B2B) to make the pt2 as well as later rising black to confirm pt3...
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You've listed one way to go from Point One to Point Two to Point Three. You have not described the only way.

Quote from LostTrader:

Seriously, do you believe that the B2B is not required as part of the pt1 to pt2?
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Seriously. A quick review of today's traverses show Volume frequently decreasing between Points One and Two (See Attached), and not (as you have suggested) increasing between Points One and Two.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1840444>
 

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Quote from Spydertrader:
You've listed one way to go from Point One to Point Two to Point Three. You have not described the only way.
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Okay, thank you.
Yes, I have seen many such traverses & retraces, I just did not realize that they were valid 123 channels yet :)
hence I always drew them in grey until they were verified & then they "won" a color. :D

Thanks for the clarification, it is appreciated!
 
Quote from LostTrader:

Okay, thank you.
Yes, I have seen many such traverses & retraces, I just did not realize that they were valid 123 channels yet :)
hence I always drew them in grey until they were verified & then they "won" a color. :D

Thanks for the clarification, it is appreciated!
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Think in terms of the Jokari window, then you have something to hang your pegs on.

When do we see point 1? FTT. bounce of LTL and VE.

Ok in an uptrend we go up on increasing price; increasing volume - we then have our point 1.

Now what must come next to get to point 2? decreasing price and decreasing volume :

For point 3, what must comes next? increasing price, decreasing volume

BINGO :D Now ALL we need is decreasing price and increasing volume to go down!! Simple

However, if we get increasing price and increasing volume, we are going higer, there will be no point 3. Look at today's chart and see if you can identify some trades based on the above. We saw several set ups today in the making ! And we were happy bunnies!!
:D :D Keep it simple
 
I've followed Spydertrader's explanation of the period you inquired about, and I'm not arguing it. My interpretation (at the time) was a little different, and it was based on the slight increase in red dominant volume of the 13:35 bar. So I've marked it as an FTT, with an IBGS.

The 1 min gaussians (annotated only for illustrative purposes) are meant just to show that the B2B actually happened at the beginning of the 13:40 bar. I don't annotate the 1 min chart, and I glance at it only once in a while just to review the intra-bar activity of the 5 min bars (I know that Spydertrader advises not even have it open).
Quote from LostTrader:

Spyder, I am curious about your blue channel on your ES2 chart.
I do have a matching channel on the YM; however, this one
I removed from my ES, as I do not see the Gaussians that support the pts 123 (on ES). I do have your green channel [in grey as a pseudo-tape], and I later drew a blue one from the same 1340 pt 1 to the 1430 bar.

Did you see Gaussians for your blue 123 on a finer level?

Thanks!!
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Attachments

Quote from Spydertrader:

... Price has simply arrived at Point Two, and has yet, made its way to Point Three. As price moves toward Point Three, one often receives what appear to be conflicting signals. The appearance of these 'so-called' conflicting signals results out of context. Should the resulting changes from Point Two to Point Three occur within the previous channel, one can often 'see' Volume return to increasing Dominant. Such events also occur when the trader 'misses' a trend line (as in not seeing an accelerated channel) or watches Price and Volume Break Out of a formation. Again context is king. ...
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Quote from callmate:

Think in terms of the Jokari window, then you have something to hang your pegs on.

When do we see point 1? FTT. bounce of LTL and VE.

Ok in an uptrend we go up on increasing price; increasing volume - we then have our point 1.

Now what must come next to get to point 2? decreasing price and decreasing volume :

For point 3, what must comes next? increasing price, decreasing volume

BINGO :D Now ALL we need is decreasing price and increasing volume to go down!! Simple
More...


Callmate, could you point out when this sequence unfolded today or just tell me the time.

I just want to clear something up thats confusing me..
 
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