Iterative Refinement
- Thread starter Spydertrader
- Start date
Quote from The Swordsman:
I wouldnt, doesnt affect me one bit.
You are quite a demanding fellow arent you?
I wouldn't exactly call it demanding.
You see, here's the thing...
If he were trading 1 contract and I took out the pre market trades that would have came out to about 37 points in the first hour of the trading day.
On that day, that flat out was not possible unless your were micro scalping and even then I'm not sure it would have been possible. Actually scratch that.. even if you were micro scalping it would not have been possible.
He goes from trading 1 contract to 10!
Yeah, post the audit trail. I didn't think he would. Like that would have been a hard thing to do and why would you not want to? Doesn't make sense does it?
In this business you have to have a degree of skepticism and ask questions. Especially when something seems "funny" Its also known as: Getting your head out of your ass.
I'd rather focus my energy on applying concepts to market context and seeing if I can consistently find correlations day after day after day rather than inspect someone's P&L and focus my energy on trying to discredit them.
It appears that majority of those who posted their charts today identified bar number 19, which started at 11:00 and ended 11:05, as pt3 in forest down channel. That bar is marked with fat green arrow on attached chart. I believe that those channels were drawn incorrectly because an increase in dominant (red) volume didnât arrive until a few bars later. The next posts attempts to apply what I have learned about sequences to what I saw at that time.
Continuedâ¦
Continuedâ¦
Following is a bar by bar description. I would appreciate somebody with more experience taking a quick look at the logic and giving a feedback.
11:00 â 11:05 -- Bar 19 â The bar made higher high and is not an outside bar, therefore its color is black. It traversed and retraced the channel. The bar is IBGS and FTT. Dropping down to 1 min shows retrace on decreased non-dominant red followed by traverse on increased dominant black, followed by retrace back to RTL on decreased non-dominant red as expected after an FTT.
11:05 â 11:10 -- Bar 20 â The bar opens outside the RTL and heads lower on decreased Red volume. We expected increased Red. It did not materialize. What must come next, didnât and we expect trend to change.
11:10 â 11:15 -- Bar 21 â The trend did change. The price heads higher in decreased volume. Therefore are still in uptrend.
11:15 â 11:20 -- Bar 22 â The bar made higher high and is not an outside bar, therefore its color is black. The bar is IBGS.
We have three black bars heading higher in uptrend on decreased volume â usually signifies lateral price movement
11:20 â 11:25 -- Bar 23 â Price heads lower on increased red volume. Pt 3 is identified.
11:00 â 11:05 -- Bar 19 â The bar made higher high and is not an outside bar, therefore its color is black. It traversed and retraced the channel. The bar is IBGS and FTT. Dropping down to 1 min shows retrace on decreased non-dominant red followed by traverse on increased dominant black, followed by retrace back to RTL on decreased non-dominant red as expected after an FTT.
11:05 â 11:10 -- Bar 20 â The bar opens outside the RTL and heads lower on decreased Red volume. We expected increased Red. It did not materialize. What must come next, didnât and we expect trend to change.
11:10 â 11:15 -- Bar 21 â The trend did change. The price heads higher in decreased volume. Therefore are still in uptrend.
11:15 â 11:20 -- Bar 22 â The bar made higher high and is not an outside bar, therefore its color is black. The bar is IBGS.
We have three black bars heading higher in uptrend on decreased volume â usually signifies lateral price movement
11:20 â 11:25 -- Bar 23 â Price heads lower on increased red volume. Pt 3 is identified.
While your data provider showed decreasing red Volume on the bar after your highlighted green arrow (as did mine), some of the other charts showed increasing red Volume on that bar. Review the charts and note Volume Levels on the bar after the one you highlighted in order to determine if people annotated incorrectly, or their data simply differed from yours.
For instance, on Treeline's Chart, he did not have increasing red on the next bar, and as such, correctly identified the 11:00 - 11:05 bar as the Point One. Whereas Guavaman's chart does show increasing red, and as such, he had a Point Three in the same area.
Based on the information shown on your chart, nothing appears out of the ordinary with respect to the posted logic.
- Spydertrader