Iterative Refinement

[cnms2]

This is the WMCN based on my current view of the daily ES. ESM8's daily volume was affected by the roll-over and by the Easter holiday.

Quote from TIKITRADER:

ES M8 Daily Chart March 26 2008.

Today formed a lateral formation on the daily chart.

Price has entered back into the dominant channel, but within the lateral formation on lower volume.

 

[cnms2]

My interpretation is that the short bars correspond to the lowest volume associated with the end of a retrace (see also Jack's observation about pennants on non-dominant traverses), while the long VE bars correspond to the volume peak associated with the end of a dominant traverse.

Quote from TIKITRADER:

Charting the daily bars for a few months now at a greater level than I had in the past has revealed some things....

 

[TIKITRADER]

cnms2,

The funny thing is I know that when charting the intraday charts. I know that when charting the daily charts.
It just came together all a few months ago how the daily bars could possibly reveal what kind of day I might have intraday.

A very slow AHA moment for me. While everyone else here might be like. . .


you didn't know that!

 

[cnms2]

ES's STO 14,1,3 : exit LONG

 

[TIKITRADER]

When it makes sense to put in a channel on the daily chart, but the volume is off because of a holiday, is it valid to put in the channel?

I have wanted to place that green channel cnms2 has annotated but was not sure if I could.

I have seen this at Christmas time on the daily, in which I did place an up channel without the volume because of the holiday.


Any feedback on this is great because I really don't have an answer here.
Thanks.

 

[LittleMac]

Got short SKX today at around 20.35. I felt there'd be increased red today(compared to yesterday) and a BO from the short term light blue channel after the FTT. I held based on the fact that a longer term channel has been established and the Stochastics are beginning to turn down in a reverse Bruno R type play. I usually dont hold shorts but I want to get myself into more trades intraday over the next few weeks. Ill continue to hold on the condition that increasing red comes in tomorrow confirming the BO of the light blue channel and a traverse of the red channel.

Comments appreciated.

 

[Padawan]

Quote from LittleMac:

Got short SKX today at around 20.35. I felt there'd be increased red today(compared to yesterday) and a BO from the short term light blue channel after the FTT. I held based on the fact that a longer term channel has been established and the Stochastics are beginning to turn down in a reverse Bruno R type play. I usually dont hold shorts but I want to get myself into more trades intraday over the next few weeks. Ill continue to hold on the condition that increasing red comes in tomorrow confirming the BO of the light blue channel and a traverse of the red channel.

Comments appreciated.

Thanks for the info, LittleMac. What is your exit criteria for this short?

 

[guavaman]

 

[Padawan]

Quote from Spydertrader:

The trend did change - two bars earlier - to the downside. Since increasing red Volume only materializes under certain circumstances, one simply needs to go 'look' for these circumstances to show themselves. Once noting the possibility of two competing channels existing, check the YM to 'see' what it has to say. The YM provides a crystal clear signal right at this time. Find it, and let everyone know the outcome.

- Spydertrader

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1855648>

Great question and answer. I also had trouble there.

Here's my answer to the exercise, though it's best not to look until after checking your chart if you had trouble in that spot. Hope ours compare favorably. This reminded me of 14:20/14:25ish area last Thursday (03-20).

 

[LittleMac]

Padawan I'm gonna use the 30 min chart until I get into a pretty solid profit line. If the volume brings it up past the RTL of the White Trend line, then Ill look to get out. I'm trying to stay away from focusing on the 30 after I'm in on these setups because too often the force me out early or make me panic. The rule according to the journals which I have read repeatedly is to use the 30 for you're entry and you're exit(when you are ready to exit) after certain circumstances(ie 10% gain, in for 4 or 5 days, etc....)