Iterative Refinement

Quote from Breakeven:

I do not think the purple channel is valid. In that situation either fanning the red down channel or rolling the channel out (attachment) where the last pt3 becomes pt1 would give a better picture.
More...

On reflection, Yes, I agree with you. To begin with, it was a loose anchor to start a Point 1. I was looking for a provisonal Channel to bound price before the market found the Point 3 Long. Find the right context and you don't require multiple context to keep track of price. It was a case of too many, too much.

Quote from bi9foot:

Spydertrader has talked about the importance of drawing every channel that is confirmed by increasing volume.
More...

Usually, I'd keep all the valid Channel's in place, even in this context where the working Channel was Long and Dark Blue(as Nkhoi pointed out), just to see how the market moves near the lines.

Suppose price broke out of the Long RTL on increasing volume after a FBO at the Short RTL (See Attached Picture). If that happens, I wouldn't be scratching my head wondering if I missed a Channel. :p


<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1858601>
 

Attachments

1 trade today.

ES forms pt3 and continued into a down channel.

YM shows a ftt. (clues: reached forest LTL, volume drops off, price reverses)

Concluded ES was forming a ftt bar. (strong volume but price does not reach Pink or Green LFT, price reverses and heads higher to open of bar.

WMCM: ES retrace to RTL on decreasing volume. Then hopefully a BO.

Never got the BO, price came back into channel and ended up with a wash trade. (actually BO happened on next bar)

In the trade for about 10 minutes. Was up a couple points at best but had no follow through.
 

Attachments

Got out of SKX today for a nice profit. Also got out of ARGN for a real nice profit. Basicall i didnt want to hold through the weekend but I might have on both if I had more experience. SKX had decreasing red today but it could be setting up another BO of the blue up channel. Anyone with experience, what would have done after todays volume bar in regards to SKX

Comments needed.
 

Attachments

Quote from ang_99:

1 trade today...
...WMCM: ES retrace to RTL on decreasing volume. Then hopefully a BO.

Never got the BO, price came back into channel...
More...
Did you give this trade a chance?

Your WMCN after a FTT is correct, did you actually wait for this sequence to play out?

You exited on an inside bar, you were in a forming pennant on dec red vol after an entry on the FTT. Is this the proper sequence you had in mind?

What actually did happen? Did your WMCN actually come later?
 
Quote from Avi 8:

Did you give this trade a chance?



Your WMCN after a FTT is correct, did you actually wait for this sequence to play out?

I did. I let it retrace to RTL. BUT

You exited on an inside bar, you were in a forming pennant on dec red vol after an entry on the FTT. Is this the proper sequence you had in mind?

In hind site, this is where I f'd up. I didn't realize we had just formed a sym. pennant on relative DU volume and I should have held.

What actually did happen? Did your WMCN actually come later?

It did come later. The next bar. We did get the BO.

More...
 
Ang,

Your 1 wash there was better than I did. I reversed long on the same bar you entered (2 ticks worse as I was a bit earlier).

Held through the sym then reversed short on the OB as it was showing inc prv red for the first loss.

Then back long on the OB for the second loss.

Then held through the next sym and exit on the break of that one for a wash.

So, 2 loss, 1 wash, miss the down move. :)
 
You must log in or register to reply here.
Back
Top