Iterative Refinement
- Thread starter Spydertrader
- Start date
5 minute ES chart for May 23 / 08.
Well,
Today tarted pretty badly, but ended up ok, thanks to all the channel work I have been doing, actually.
I had been in on BKI for two days. It had been up 6%. I held onto it with a 5% stop today because yesterday it had decreasing volume. Well, it hit its stop pretty early, which was frustrating.
However, I did something today that I have been avoiding, and it has cost me the past few days. I shorted using the Hershey Method.
Below is a chart of CZZ attached. It has been in dry up for some time.First, I took chuy's advice and looked for larger channels as well as smaller ones. I think I found a proper one, but if not, someone please correct me.
I then noticed four things when I examined the chart.
1) It had recently hit the top of this larger channel.
2) It had broken out of its smaller up channel, but gone into a lateral (CCC?)
3) It was now at the bottom of that lateral.
4) It was below the 20SMA line.
So, when the stock hit DU volume AND as down, I shorted it early and will hold until the market says otherwise
.
If there is something wrong with my logic here, please let me know.
In addition, I shorted two other stocks which I ended up breaking even on and exiting out of today. However, I am relatively happy with these because I exited out them after they had been in a lateral motion for HOURS and then showed increasing black volume. In addition, they were not the best choices as far as the daily charts showed.
Thanks all!
JF
P.S. I just looked ove the chart again, and there even seems to be a Head and Shoulders formation with the peak on March 3.
Today tarted pretty badly, but ended up ok, thanks to all the channel work I have been doing, actually.
I had been in on BKI for two days. It had been up 6%. I held onto it with a 5% stop today because yesterday it had decreasing volume. Well, it hit its stop pretty early, which was frustrating.
However, I did something today that I have been avoiding, and it has cost me the past few days. I shorted using the Hershey Method.
Below is a chart of CZZ attached. It has been in dry up for some time.First, I took chuy's advice and looked for larger channels as well as smaller ones. I think I found a proper one, but if not, someone please correct me.
I then noticed four things when I examined the chart.
1) It had recently hit the top of this larger channel.
2) It had broken out of its smaller up channel, but gone into a lateral (CCC?)
3) It was now at the bottom of that lateral.
4) It was below the 20SMA line.
So, when the stock hit DU volume AND as down, I shorted it early and will hold until the market says otherwise
.If there is something wrong with my logic here, please let me know.
In addition, I shorted two other stocks which I ended up breaking even on and exiting out of today. However, I am relatively happy with these because I exited out them after they had been in a lateral motion for HOURS and then showed increasing black volume. In addition, they were not the best choices as far as the daily charts showed.
Thanks all!
JF
P.S. I just looked ove the chart again, and there even seems to be a Head and Shoulders formation with the peak on March 3.
I am in my own little world Ivob, and they like me here.
hahahaha ! JK
I annotate on the faster side of things.
I did see that lateral, just did not annotate it.
While reviewing some of the charts I've posted, I noticed that I miss numerous channels and other annotations when I'm annotating at work. I tend to have only 5 or 10 minutes snatches of time here and there during which to annotate, which makes it difficult to be as thorough as I should. So I'm going to start posting my chart only when I annotate live, and hopefully my charts will be more consistently accurate.
Like many here, I've started working on the first "A" of MADA (actually I think it is the "D" since we are noting Continuation or Change at the end of each ES bar?). Today was a lot of fun. After all of the great discussion recently (so much great discussion that I am now about 30 pages behind
), I found that for most of the day I was completely in tune with the market. I did get fatigued late in the day and made a couple errors which I noted in my log.
One of the errors was on Bar 65, which didn't show more IBV after the SP BO on Bar 64. I missed this, and we were in a chubby tape up, so I was anticipating a P3 up to develop all the way until Bar 68, at which point I second-guessed myself a couple times until midway through the obvious OB on Bar 69. Fortunately on Bar 70 I did catch the lack of more IRV after the BO of the LF.
I had a problem with Bars 75 and 76, both of which I thought were P3 Up. I was anticipating P3 up because of the SP BO on IBV on Bar 72 followed by more IBV on Bar 73. I'll have to review this area later to see what I missed.
All in all, it was a very productive day. I'll post my chart in two images since it's getting scrunched when I try to fit it all on one.
[Edited for accuracy and clarity.]
Like many here, I've started working on the first "A" of MADA (actually I think it is the "D" since we are noting Continuation or Change at the end of each ES bar?). Today was a lot of fun. After all of the great discussion recently (so much great discussion that I am now about 30 pages behind
), I found that for most of the day I was completely in tune with the market. I did get fatigued late in the day and made a couple errors which I noted in my log. One of the errors was on Bar 65, which didn't show more IBV after the SP BO on Bar 64. I missed this, and we were in a chubby tape up, so I was anticipating a P3 up to develop all the way until Bar 68, at which point I second-guessed myself a couple times until midway through the obvious OB on Bar 69. Fortunately on Bar 70 I did catch the lack of more IRV after the BO of the LF.
I had a problem with Bars 75 and 76, both of which I thought were P3 Up. I was anticipating P3 up because of the SP BO on IBV on Bar 72 followed by more IBV on Bar 73. I'll have to review this area later to see what I missed.
All in all, it was a very productive day. I'll post my chart in two images since it's getting scrunched when I try to fit it all on one.
[Edited for accuracy and clarity.]