Iterative Refinement

[romanus]

I am still in the monitoring mode.

9:30 – 9:35 – Bar 1 – opens within prev. day CO channel and creates VE. The bar is black and IBGS. 1 min bars show shift from incr. black volume to decr. red volume.

9:35 - 9:40 – Bar 2 – heads lower on incr. red volume creating pt3 in the maroon channel drawn using prev. day’s bars as pt1 and pt2 (10:10-10:15 bar is pt1, 12:55 -13:00 bar is pt2). I would enter here.

9:40 - 9:45 – Bar 3 – price exits Lime prev. day CO channel on decr. volume

9:45 - 9:50 – Bar 4 – incr. red volume creates pt3 in the tape. The bar failed to reach tape’s LTL creating possible FTT of the tape and the maroon channel.

9:50 - 9:55 – Bar 5 – heads higher on decr black as expected after an FTT. I would reverse here.

10:00 – 10:05 – Bar 6 – black bar on incr. black volume. The bar is IBGS and that caused some concern.

10:05 – 10:10 – Bar 7 – heads lower on decr. Red volume. What was expected after an FTT on 4 didn’t come – means change. I would reverse here.

(Red decreased volume is found in the non dominant traverse (retrace) of an up channel where black is dominant. The bar indicates we are in the non-dominant retrace that came after dominant traverse created by the lime prev. day’s CO channel.)

The above part in brackets I am not so sure about. Please confirm if the logic applied here is correct.

10:10 – 10:15 – Bar 8 – outside bar. 1 min shows another outside bar followed by SYM pennant. Hold

10:15 – 10:20 – Bar 9 - creates SYM pennant and possible FTT due to an even harmonics . Hold


10:20 – 10:25 – Bar 10 – heads higher on incr. black volume creating an FTT and pt3 of the green up channel. I would reverse here.

10:25 – 11:00 – Bars 11 through 18 – price heads higher within the tape until BO on incr. red volume on bar 18 (10:55 – 11:00)

 

[Spydertrader]

Quote from romanus:

I am still in the monitoring mode.

How do you have a channel where you have marked your first grey down channel of the day?

- Spydertrader

 

[Breakeven]

Quote from Spydertrader:

Today's quiz: Post the signals, when they occurred, why they occurred, and whether or not you followed them.

- Spydertrader

My view of the morning attached. "2a" got me, did not take "3".

 

[romanus]

I just realized that since bar 6 is black on incr. volume it confirms pt3 in the green up channel sooner. The view changes. See attached.

My commentary is an example of jumping fractals and changing resolutions back and forth I think after careful considerations.

In hindsight I should have drawn the green pt3 channel after bar 6 on incr. black volume (dashed green on the attachment).

Bar 7 BO’s on decreased volume would have caused the channel to fan and drawn through the low of bar 7 (dotted green on the attachment). BO on decreased volume means trend hasn’t changed, just the channel.

Bars 8 and 9 would have closed within that (dotted green) channel and one could either leave that channel in place or fan to more times to arrive at solid green channel.

None of these actions would require anything other than hold after reversing on bar 5.

So here it is. Short bar 2 on incr volume, reverse bar 5 after ftt, exit bar 18

 

[romanus]

Quote from Spydertrader:

How do you have a channel where you have marked your first grey down channel of the day?

- Spydertrader

Bar 2 is an FTT in the lime prev. day CO channel. ??FTT marks pt1 of the new channel?? – is the assumptions I was operating under. So, when the incr. read arrives on bar 4 it creates pt3 tape.

 

[Spydertrader]

Quote from romanus:

Bar 2 is an FTT in the lime prev. day CO channel. ??FTT marks pt1 of the new channel?? – is the assumptions I was operating under. So, when the incr. read arrives on bar 4 it creates pt3 tape.

Does tape = channel?

- Spydertrader

 

[Avi 8]

Quote from Breakeven:

My view of the morning attached. "2a" got me, did not take "3".

See Spydertrader's post right above yours. How do you have a pt 3 down where you entered short?

How many times has it been discussed, that the charting software programming geniuses do not know how to trade, let alone how to COLOR the bars?

Look at your 'pt3' down on bar 6. That is not inc red volume. It is the opposite. Now the context and WMCN are completely different.

See romanus's corrected chart.

 

[romanus]

Quote from Spydertrader:

Does tape = channel?

- Spydertrader

Am I correct in assuming that the definition of the forest channel is that it consists of dominant and non-dominant traverses which are pt3 tapes. In other words in order for the channel to be forest channel, its both dom and non-dom traverses required to be pt3 tapes?

Because if I apply this logic here I arrive at a nice blue down channel built from pt3 tapes, except I have to treat the outside bar as black bar and that will give me incr. black to confirm the channel. But it’s an outside bar?????????

Guidance is needed here please.

 

[Avi 8]

Quote from romanus:

Am I correct in assuming that the definition of the forest channel is that it consists of dominant and non-dominant traverses which are pt3 tapes. In other words in order for the channel to be forest channel, its both dom and non-dom traverses required to be pt3 tapes?

NO.

Not pt3 'tapes', pt3 CHANNELS. Channels ARE traverses of larger 'forest' channels.

 

[Avi 8]

Quote from romanus:

...Guidance is needed here please...

See attached:
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1895447>