Iterative Refinement

[Mr_Black]

Next week calendar

 

[Spydertrader]

Quote from cnms2:

In my opinion they don't translate on the daily fractal.

Whether or not something translates from one fractal to another represents a far different thing than whether or not something exists. Clearly, the Outside Bar in question shows decreasing Black Volume.

Quote from cnms2:

Would you please explain what was your reason to draw the blue channel?

The components necessary for the creation of a Traverse all exist at that point in time.

Quote from cnms2:

It doesn't seem to satisfy the known definition for a pt3 channel.

Volume confirms a Point Three. Volume does not create a Point Three. Unless one has chosen to draw channels in the Volume Pane of their chart, something else creates a Point Three Channel or Traverse.

Quote from cnms2:

We know that between pt1 and pt2, and pt2 to pt3 we have three possibilities for volume, but after pt3 only one.

I believe you may have added a qualifier which I do not recall providing.

- Spydertrader

 

[R/R]

Quote from romanus:

Could you elaborate a little bit, because here's an example of OB that closed as lateral movement but signaled in the opposite direction. Or did you mean it signaled short because WMCN did not materialize.

As Spyder said, an OB can signal change multiple times.

After signaling change to long intrabar, it showed the first signs of change (back to short) again before it closed because it sold off from it's high to the extent of ending as a lateral move. If these were intraday bars I would have waited for the next bar to signal change on my resolution level. Daily bars are subject to gaps so I would have exited.

The next bar finished the story.

On your other example if I were short before the OB and trading with end of bar decisions, I would have held short waiting for more information after the lateral close.

If I were trading intrabar the IBGS on +B gave the signal to change to long. Since there was no IF1 -2 I would have held long to the close.

 

[eliasg101]

I also have it as a non dom traverse to an FBO that started a new down channel never got a pt 3. I'm working on it but i still have a ways to go. comments welcomed.

 

[romanus]

Quote from Spydertrader:

The components necessary for the creation of a Traverse all exist at that point in time.
______________________________

Volume confirms a Point Three. Volume does not create a Point Three. Unless one has chosen to draw channels in the Volume Pane of their chart, something else creates a Point Three Channel or Traverse.

AHA!

 

[romanus]

Quote from R/R:

Since there was no IF1 -2 I would have held long to the close.

Thanks, I got to figure out those if1,if2 conditions.

 

[romanus]

Quote from cnms2:

Jokari ...

Yes, that's the answer. Thanks.

 

[Jander]

Quote from romanus:

Thanks, I got to figure out those if1,if2 conditions.

After a thorough review, I am finding these very beneficial to my trading. I believe that used alone there is probably a positive expectancy, so the use of if1/if2 coupled with a firm grasp of sequences and formations gets very interesting

 

[palinuro]

Quote from romanus:


As far as blue pt3 up channel, I think the market had spoken clear enough that it is not valid since there is no increasing black volume on daily chart at or after the annotated blue pt3.

Any guess is as good as mine as to why Spydertrader chose to annotate those blue lines on a chart, but he is the only one who knows for sure.

If I'm not mistaken, the chart for SOLF, which Spydertrader posted as soon as this discussion started, also shows an unconfirmed blue up channel. Perhaps comparing it to the first chart will help clarify what he is seeing....

 

[cnms2]

Thanks.

Quote from Spydertrader:

... - Spydertrader [/B]