Iterative Refinement

[Specterx]

My chart for today. Still on that black BG but I'll play around with it tonight.

Thanks to Padawan for helping me with the text in NT.

I feel like I'm having few issues with the Forest View at this point. I have occasional issues with gaussians but usually catch them on a second pass (though I do see a few mistakes on my chart, comparing it to others; some of these might be preferential differences rather than errors). One question that did come to my mind concerns the BO of the aqua channel at the center of my chart. Price broke out stayed out of the channel for a total of 4 bars, which I felt was "enough" and so I didn't continue the channel annotation; also, by that time I'd seen a new pt3 and drawn the lime-colored channel which engulfed the aqua one. Is that the proper way to handle this situation, i.e. consider a breakout "final" if price stays outside the channel for at least a full bar, while looking for a new pt3?

I've seen some references here to 'fanning' which I gather relates to moving the pt3 (something I thought was forbidden), but haven't had a chance to do the research on it yet. I plan to do that today though.

Other than that, having gained some proficiency with NT I'll try to start actively monitoring the YM.

 

[ivob]

Quote from guavaman:

WARNING: The views expressed in this post are rantings of one dude that is working through the "Analyze" phase of MADA. Peruse at your own risk.

Nice Guava.
There's something I don't understand.

Increasing black volume on pennant = change, reverse short. This is around 13:45.

It was a pennant where the inside bar had higher volume than the 1st bar of the pennant and it was black. I don't see why someone could conclude at that moment this means change to the short side.

My comment there would be something like "Alert, high volume on inside bar, breakout expected soon, monitor closely". I don't see how another conclusion can be reached here.

Would it be possible to elaborate a bit on this?

regards,
Ivo

 

[Padawan]

Hi Astral, if you're still having problems with Mak's excel spreadsheet, try enabling the macros. That was the main issue for me.

 

[TIKITRADER]

ES M8 Daily Chart May / 7 /2008


ES daily bar formed an outside bar on increasing volume and closed near its lows.
ES daily bar broke out of the dominant traverse on increased volume.

 

[cnms2]

Are these valid Lateral Movements?

EDIT: Sorry, on my chart, the left square, that 4th bar closes one tic higher; it doesn't brake the LM's lower boundary.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1913284>

Quote from Spydertrader:

Attachment

 

[Miracle]

Hi Spyder,

Thanks for posting your chart. It greatly helped me to evaluate my work for today.

I am wondering if you can elaborate why you pick up the bar I marked on your chart as pt1 for the pink down channel. I have recycled your previous down channel pt1 and fanned to your pink channel pt3 in real time.

Thanks.

 

[Spydertrader]

Quote from Miracle:

I am wondering if you can elaborate why you pick up the bar I marked on your chart as pt1 for the pink down channel.

I chose the most recent Price Peak, rather than, go all the way back to Point One to fan out the channel.

- Spydertrader

 

[Spydertrader]

Quote from cnms2:

Are these valid Lateral Movements?

While both technically (the left square using the Price Points of your chart, not mine) fit the definition of Lateral Movement, you want to always have these Price Formations where the market has made a left to right traverse. Think of Lateral Movement as a Non-dominant retrace, but one which moves in a lateral direction.

In other words, you want to 'see' the closes lining up within the subsequent bars.

- Spydertrader

 

[guavaman]

Quote from ivob:

My comment there would be something like "Alert, high volume on inside bar, breakout expected soon, monitor closely". I don't see how another conclusion can be reached here. Ivo

Also you could say to yourself; "self what we have here is an inside bar/FTP with increasing black volume. This horse just doesn't seem right. Usually we have decreasing volume in these here situations. We sure don't expect this. Since the market is doling out something peculiar like this, something here is amiss. Therefore me, myself and I are going to expect change a commin'. Since the market was tryin' to go up, change meant down to moi.

That's the way I saw it pilgrim.

 

[Talas]

Quote from guavaman:

Also you could say to yourself; "self what we have here is an inside bar/FTP with increasing black volume. This horse just doesn't seem right. Usually we have decreasing volume in these here situations. We sure don't expect this. Since the market is doling out something peculiar like this, something here is amiss. Therefore me, myself and I are going to expect change a commin'. Since the market was tryin' to go up, change meant down to moi.

That's the way I saw it pilgrim.

Curious. I noted the same thing as Ivob re: your chart. For me, the 'something amiss' would have been the increasing vol on decr range. The 13:45 bar had 1.5X the vol of the previous bar but 1 tick smaller range - therefore price was 'struggling against the tide'.

Thanks for sharing your charts, guavaman.

- Talas