Iterative Refinement

Quote from nkhoi:

very nice chart!
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Nkhoi,

Can you explain why you crossed out those point 3 channels?

Those are all valid channels confirmed by increase in volume.

Also keep this in mind: Spydertrader has talked about the importance of drawing every channel that is confirmed by increasing volume.

<img src ="http://www.elitetrader.com/vb/attachment.php?s=&postid=1857439">
 

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Quote from Tums:

May I suggest a 20 period Simple moving Average?
It might offer a glimpse of the big picture.

http://www.elitetrader.com/vb/showt...t=20+period+Simple+moving+Average#post1309688
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I actually took the 20sma off my screen a little while back.

I just didn't see where it added any value.

Noticed there is trading activity around the 20sma but you could say the same thing about any number of indicators.

Found it was a distraction.

I could be missing something important here.

What does it do for you? How does it help you in any way?
 
Quote from ang_99:
I actually took the 20sma off my screen a little while back.
I just didn't see where it added any value.
Noticed there is trading activity around the 20sma but you could say the same thing about any number of indicators.
Found it was a distraction.
I could be missing something important here.
What does it do for you? How does it help you in any way?
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Read Spyder's lips.

If this is not important, or if there is no added value, do you think Spyder would ask us to "Please place a .... in the price window... Add nothing else..."


You can try a search of Spydertrader's posts with the keywords "20MA" or "20 MA" or "20 Moving Averages".

He has discussed (disclosed?) many key observations, many times, in graphic details.
 
I should probably take back the "no value" part or my comment.

What I really wanted to point out is that I find myself using it as a target or waiting till price clears past it or expecting a bounce off it.. things of that nature.
 
Quote from ang_99:

I should probably take back the "no value" part or my comment.

What I really wanted to point out is that I find myself using it as a target or waiting till price clears past it or expecting a bounce off it.. things of that nature.
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...arh, I see. You are really doing things your own way, but blaming your failure on the method?
 
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>
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Many thanks for your reply and my apologies for late response (life got in the way).

It's clear from the missing channel that I still have plenty of practice to do to make sure that doesn't happen anymore.

As to the YM, please see my attachment. After much thought, the best I can see is the break out of the down channel on increasing volume (which is also a B2B). I have this marked with the arrow.

If this is not the correct answer please let me know and I'll work on it some more.

PS Stoch gone, it was just there from working through a previous exercise, but I do not use it at all.

Thank you very much again.
 

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ES Daily Chart March 27/ 2008

Today price had increased red volume and closed back inside the dominant down channel.

Price is still inside the lateral formation and has yet to break out of it.

Added green pt 3 up channel cnms2 had posted.
 

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Quote from bi9foot:

Nkhoi,

Can you explain why you crossed out those point 3 channels?

Those are all valid channels confirmed by increase in volume.

Also keep this in mind: Spydertrader has talked about the importance of drawing every channel that is confirmed by increasing volume.
..
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I guess I was more focus on 3 VEs of the up channel than 3 FBOs of the 3 down channels.
 
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