Iterative Refinement
- Thread starter Spydertrader
- Start date
Thank you R/R for bringing this up. This bit of discussion has me really shaken. I have read the entire futures thread a several times as well as this thread.
Over and over, the one consistant refrain has been: "the one thing you don't want to see is increasing volume going against your position". What you post R/R is exactly what I have come to understand as what we wish to see for a LONG.
I appreciate that context is king. Unfortunately, there appear to be a virtually endless number of distinct contexts and I am unable to determine how to proceed. Context is very easy to see after the fact. Before hand, one could easily have scene this situation as LONG being the right side of the market.
Edit: I do see that the pt3 down just formed and no flaw or VE yet existed. I understand that means hold. I do not intend for my post to indicate an argumentative mode, more like I thought I was starting to really get this and now finding the rug pulled out sort of thing.
Short Quiz: Define the Price - Volume Relationship in 20 words or less
Since many people still find themselves confused with respect to the recent discussion, the above short quiz should shed some light on the areas still needing focus.
Since many people still find themselves confused with respect to the recent discussion, the above short quiz should shed some light on the areas still needing focus.
My answer:
Price movement on increasing volume indicates the direction of price will continue. Decreasing volume indicates price direction will change.
Hi,
I am aware of the diffences in context but when we have an inside bar in the other direction than the previous bar, on much higher volume (+closing almost at the top) I cannot imagine myself taking a short at the close of that bar.
Now the next bar goes one tick higher and immediately goes down. I can imagine going short right right there. After all we had a BO and we expect a point 3 down (the context). That's a signal of change, obviously the increasing volume was not enough.
regards,
Ivo
I am aware of the diffences in context but when we have an inside bar in the other direction than the previous bar, on much higher volume (+closing almost at the top) I cannot imagine myself taking a short at the close of that bar.
Now the next bar goes one tick higher and immediately goes down. I can imagine going short right right there. After all we had a BO and we expect a point 3 down (the context). That's a signal of change, obviously the increasing volume was not enough.
regards,
Ivo