Iterative Refinement

ES U8 Daily Chart July / 1 /2008


Daily ES bar made a LL and a LH today, and did so on peak volume.
Daily bar also closed as an IBGS, but within a lateral movement.
Price today did close outside of the down tape it was contained in.
Today also closed as an FTT of the white dominant traverse, and once again has increased the volatility expansion of the dominant down channel.

Range of daily bar = 25.75 points

Volatility to previous bar = 154%

Volume to previous bar = 148%

Close of daily bar = 99% of the range today.

Close of previous bar = 45% of the range that day.
 

Attachments

Quote from Spydertrader:

M - Monitoring - A Trader must have the ability to create thoroughly and properly annotated charts.

- Spydertrader
More...


Please know any broker charts I post are terrible. The charting is the worst, so I keep almost nothing on those charts.
I do keep a thoroughly annotated chart on the good platform, same as I post the daily charts on.
 
Dear Spydertrader,

I've been reviewing every post you've ever made with the words "lateral" or "pennant" within. In the process, I came across the following bit from chat....

Spydertrader (Jan 29, 2008 3:17:03 PM)
"YM shows increasing black 9as it still remains in its up channel) but not the ES, As the Es remains in its Lateral, we do not need to worry"

Can you please help me understand how a trader can know when to ignore the YM? WHen ES is in or forming a pennant or lateral formation, we have permission and must go look at the YM for a signal. That makes sense. But, in the chat text above, the ES was still in YM permission mode, was signalling change in reference to your then current position (short to long); yet you chose to ignore this YM info. In the text quote above, it sounds for all the world like you chose to do the exact opposite of what one is supposed to: ie the ES is in lateral, look at YM for signal, and that YM signal showed the one thing we don't want when short, ie increasing black volume.

Was it simply a case of you giving the market some wiggle room by waiting for more increasing volume after the inc vol b/o bar of the pennant the YM was then in? More specifically, would your patience with increasing volume of the "wrong" color only apply in the situation where the YM was breaking a pennant and you've made it a personal "rule" to wait until bar after? Or is there something else deeper I'm missing about how to use the YM.

I apologize for the wordiness, and still am not confident I'm clear about my question. Please let me know if I need to reword it.
 
Quote from gravitonium77:

Can you please help me understand how a trader can know when to ignore the YM?
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The YM cycles 2.5 times as fast as the ES. As a result, if one wishes to stay on the same resolution level throughout the entire trading day, one needs to only take signals for change which develop on the same resolution level.

In other words, If the YM signals change in the direction of a non-dominant retrace of a non-dominant traverse on the ES, a beginning level trader needs to know if the time has come to seek a signal for change (or not) on the current resolution level.

Inside a Lateral, beginner level traders do not trade. Instead, beginner level traders anticipate the break out of the Lateral.

- Spydertrader
 
Quote from Munck:

Gucci,


I believe this is what you're looking for.

(Edt.: looks like ET discarded my attachment...)
:confused:
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Munck, thanks for your effort. Can you try it one more time, or point me to the right direction?
 
While trading intraday for real, I have been practicing sim trades on the daily chart.
I am looking to better understand and read the daily for taking positions.

Placed this long position yesterday (SIM) on the ES, and I am still holding with a stop 1 tick above the entry. Stop will be moved up now.
Entry can be seen on DOM.

It is SIM, but just very cool to be able to read the market signals on daily and work on some longer positions.

I wish it were real now !
 

Attachments

Quote from TIKITRADER:

While trading intraday for real, I have been practicing sim trades on the daily chart.
I am looking to better understand and read the daily for taking positions.

Placed this long position yesterday (SIM) on the ES, and I am still holding with a stop 1 tick above the entry. Stop will be moved up now.
Entry can be seen on DOM.

It is SIM, but just very cool to be able to read the market signals on daily and work on some longer positions.

I wish it were real now !
More...

You are on the roll!:)
 
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