Iterative Refinement

Hello everyone.

I haven't posted here at Elite Trader for a while but want some clarification on my charting.

Since I'm not sure - I thought of getting some help from the experts on channels. :)

Attached is a chart of UYG.

I see a "perfect" hit of the yellow descending channel's rtl at 14.08.

I also see what seems to be an FTT at 14.08 (from the perspective of the red descending channel).

Price recently went above (out of the protection of the pink descending channel).

I'm trying to see what comes next...

Watching for an increase of volume for a possible point 3?

Looking forward to your response.

Ares (Jegejig)
 

Attachments

Quote from Jander:

A clear cut definition of a tape/traverse would be extremely beneficial to all, rather than the definition that Spyder posted that does not distinguish between the two
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Perhaps, you could specifically indicate what you find so confusing.

I answered this question in response to PointOne.

Without the formation of traverses, one cannot have a channel, and since no traverses formed prior to the 11:00 AM [close of] ES bar, then we cannot have witnessed a channel form. We can only have a traverse.

Period.

Now, exactly what do you find so confusing?

- Spydertrader
 
Quote from Ares1:

I'm trying to see what comes next...
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You might want to add some more detail to your charting in order to 'see' the changes both on the Intermediate and Short terms, and not just, the longer terms. Incorporate tapes, traverses and channels into your annotations, as well as all formations. In such a fashion, things should become much clearer for you.

- Spydertrader
 
Quote from Avi 8:

Ok, that cell is for price heading down.

Bar 6 has price travelling in what direction? At the 'now'?
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Relative to its open, it is moving up. I think my confusion arises from the fact that I saw price moving down (lower low), on decreasing volume, so thought "this is a signal for change". The change did occur, from down to lateral but my error is then to anticipate continuation of the up movement.

Another source of confusion is the fact that the jokari window only describes price movement UP or DOWN but in fact change can mean a change from down to lateral or up to lateral.
 
Spydertrader,

Thank you for the respose.

Here is the hourly chart (mid term that I look at).

I'm looking at a possible head and shoulder formation or is that a cup and handle (not sure).

I also look at the 5 minute chart (for the short term).

Sorry, haven't edited the charts yet to show just the channels.

I will be re-annotating it and follow your advise of getting in more details.

Thank you again for sharing channels for building wealth. :)
 

Attachments

Quote from Jander:

You are getting caught up with the up 'container'. It is very difficult to discern what exactly constitutes a traverse, which leads to equal confusion as to what constitutes a channel. It appears that there was not a channel formed throughout the duration of Friday

A clear cut definition of a tape/traverse would be extremely beneficial to all, rather than the definition that Spyder posted that does not distinguish between the two
More...
Consider my comment as an attempt to apply some logic to tape/traverse/channel differentiation.
1. A set of bars that can be annotated (i.e. LTL and RTL can be drawn) as a traverse has to meet minimum requirements: points 1,2 and 3 on at least three separate bars (chubby tape being an exception), with increasing dominant volume at or after pt3. (Here I am dealing specifically with cases where pt3's are confirmed by volume, since other examples of traverses have been introduced recently (which are not confirmed by increasing volume) and I am excluding them, since I don't have the slightest idea how they fit into overall picture)
2. What we are annotating in reality is not a traverse, but a trend. So referring to a traverse as a tool which is used to annotate a trend, it is also necessary for a trend to exist in the first place to annotate it.
3. There are cases where a set of bars meets the minimum requirements outlined in (1) above, but we know a trend does not exist, because an old trend did not change. One of the examples would be formation/pennant BO on increasing volume failing to provide more increasing volume after the BO. (e.g. no down traverse 11:25 eob - 12:00 eob) Another would be where an increasing volume, which 'appears to confirm pt3' on a set of bars that meets the minimum requirements outlined in (1) above, comes from RTL break, Formation BO/FBO or Spike bar. All three (RTL break, Formation BO/FBO or Spike bar) being the instances where one can see increasing volume when price moves in non-dominant direction.
 
Quote from Spydertrader:


Now, exactly what do you find so confusing?

- Spydertrader
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Spyder..

I will try to be concise..

Vocab Primer

Here you detail a 'definition' of sorts for the tape & channel/traverse. The traverse definition can also apply to tape apparently, as witnessed in the quiz today. Also, I have attached the chart you did to explain the three fractals 'tape/traverse/channel' . I see no material difference between that chart and the one in the quiz today. However, apparently the red down is a traverse in the quiz, but a channel in your explanation chart.

I feel that a better definition of what qualifies as a traverse is needed and would help out tremendously. Thanks for your time

Spyder's 3 level chart

Today's quiz
 
Quote from Jander:

I see no material difference between that chart and the one in the quiz today.
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Then I encourage you to look closer if you do not see a difference. Please compare the blue and pink traverses here with the Orange and blue annotations here, and let me know if you still see no differences.

The differences should be quite striking.

- Spydertrader
 
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