Iterative Refinement
- Thread starter Spydertrader
- Start date
ES
YM
In real time the last red bar was projected as a higher red volume bar. I entered on what I saw as a point 3 based on prv. The bar closed with less volume than the previous bar so I didn't get what I needed to come next so I washed my trade. However, I was wondering if the second to last bar may be viewed as increasing red volume and then a pt 3 followed by an ftt to get long in the big picture. Is the first bar increasing red, or do I need a two red bar set up for increasing volume to a point 3?
I remember this period.
First clue:
>Then lateral movement starts on bar 23.
We need decreasing (or increasing) red towards RTL. Not lateral movement (sideways). When I saw the lateral movement starting I was thinking:
- look for new point 3 long
- it's a lateral. it can take a while.
- wait for bottom border to be defined and go long for example at fbo on decreasing red.
Second clue:
RTL was broken for a moment on decreasing volume. So we fan the original channel.
Third clue:
FBO at 11:45. AlsoI remember YM showed an FTT here on a downchannel. I really think at the close of this bar one should not be short anymore.
Fourth clue:
There was a big volume drop off and price closed inside the channel. What often happens next is that dominant volume returns. (black in this case).
The last moment to exit or go long would be of course when the lateral is broken on increasing black on bar 29. While bar 29 is formed we have to carefully monitor it as a new point 3 down is still a possibility. But then we get increasing black and the bar closes at its high and volatility was just fine.
It was actually the next bar (30) where I got shaken out
and exited.
regards,
Ivo
First clue:
>Then lateral movement starts on bar 23.
We need decreasing (or increasing) red towards RTL. Not lateral movement (sideways). When I saw the lateral movement starting I was thinking:
- look for new point 3 long
- it's a lateral. it can take a while.
- wait for bottom border to be defined and go long for example at fbo on decreasing red.
Second clue:
RTL was broken for a moment on decreasing volume. So we fan the original channel.
Third clue:
FBO at 11:45. AlsoI remember YM showed an FTT here on a downchannel. I really think at the close of this bar one should not be short anymore.
Fourth clue:
There was a big volume drop off and price closed inside the channel. What often happens next is that dominant volume returns. (black in this case).
The last moment to exit or go long would be of course when the lateral is broken on increasing black on bar 29. While bar 29 is formed we have to carefully monitor it as a new point 3 down is still a possibility. But then we get increasing black and the bar closes at its high and volatility was just fine.
It was actually the next bar (30) where I got shaken out
and exited.regards,
Ivo
Quote from romanus:
The areas like the one in the blue box I tend to experience difficulties with.
VE marks change, followed by non dominant traverse on decreasing red volume.
Then lateral movement starts on bar 23.
Until bar 29 breaks out of lateral movement on increasing dominant ( black) volume, I can't see anything that would tell me that the non dominant traverse is over and we have FBO
Appreciate any comments.
Thanks