Iterative Refinement

[TIKITRADER]

Here are some drawings from Bi9foot in the IT thread:

http://www.elitetrader.com/vb/attachment.php?s=&postid=1750180

May not be what you were looking for romanus, but all I could find now.

 

[TIKITRADER]

Quote from Spydertrader:

Please compare the blue and pink traverses here with the Orange and blue annotations here, .

The differences should be quite striking.

- Spydertrader

Spyder's choice of words can be subtle,

when understood, make all the difference.

 

[TIKITRADER]

Bar #6: Spyder's Chart


As it takes place inside a container formed from bar one of down move, this would not be a traverse, waiting for signal of change as a traverse trader, hold.


http://www.elitetrader.com/vb/attachment.php?s=&postid=2005702

 

[gravitonium77]

Attached is my work on 7/24/08. The lavender horizontal lines represent a lateral traverse (pt3 channel). As this lateral channel was preceded by a down traverse (pt3 channel) I expected the lateral channel to be followed by another down traverse (pt3 channel).

THis is what we got. Everything was clear to me until the first red diamond. At the time of the red diamond, the market was in a down tape which was a dominant move of an established pt3 channel.

A VE along with decreasing dominant volume in the context desribed above is what I thought would indicate change and WMCN would be an up traverse (pt3 channel).

The bar after the first diamond (doji) was on increasing volume accompanied by lateral movement, which seemed to confirm the change.

THen the market proceeded down again. More or less the same thing happened at the second diamond. I have studied and tried to look at this different ways for many, many hours. My only guess as to what I''m not seeing correctly is that it has something to do with the way that channels seem to get wider and then what once was a pt3 becomes a full channel. IT's like the fractal changes in a moment. I'm lost

 

[TIKITRADER]

I posted this chart on 7/24/08 at 1:48pm.

http://www.elitetrader.com/vb/attachment.php?s=&postid=2005922

Looking back on this, It looks as if there was a traverse in place and no signal for change at the traverse level. Is this correct?

The day fanned as it went on as far as no change signal.

Then I would have entered short on open and held till EOD because of no signal for change on the traverse level?

Spyder's Charts:

http://www.elitetrader.com/vb/attachment.php?s=&postid=2005663

http://www.elitetrader.com/vb/attachment.php?s=&postid=2006028

http://www.elitetrader.com/vb/attachment.php?s=&postid=2006205


Any feedback is appreciated.

 

[romanus]

Quote from gravitonium77:

... I have studied and tried to look at this different ways for many, many hours.

I tend to do the same. When I can't find an answer, I ask myself: WWSD? (What Would Spydertrader Do ) And then I peek at his chart
http://www.elitetrader.com/vb/attachment.php?s=&postid=2006205
and say to myself: " Damn, he's already got points 1 and 2 there - so, what usually comes next is point 3. "
So the market signaled change as it transitioned from pt2 to pt3. Or, so it seems to me

 

[TIKITRADER]

Here is Spyders Chart from July 24 pieced together ( not very well).

 

[romanus]

Quote from TIKITRADER:

Here are some drawings from Bi9foot in the IT thread:

http://www.elitetrader.com/vb/attachment.php?s=&postid=1750180

May not be what you were looking for romanus, but all I could find now.

Thank you, that's the one I meant.

Quote from TIKITRADER:

Spyder's choice of words can be subtle,

when understood, make all the difference.

You're getting good at this . What's your take on this:

Quote from Spydertrader:

While I have no doubt others also had drawn in Traverses which simply do not exist one can know this connot be correct by asking oneself, 'What signal for change caused me to reverse short either on the 13:05 or the 13:10 [close of] ES Bar?" (Only using the ES and no medium or fine level tools.)

Hint: There isn't one. And if there isn't one there to get the trader back short, then there must not have been one to place the trader on the long side of the market previously.

Subtle differences exist which require the trader to use differentiation in order to make note of how these changes effect what must come next.

http://www.elitetrader.com/vb/showthread.php?s=&postid=2007973#post2007973
The dashed orange lines on my chart
http://www.elitetrader.com/vb/attachment.php?s=&postid=2008722
obviously do not represent a valid traverse. Setting aside the reasons for orange dashed lines not being a traverse, this appears to be the case of "no change at traverse level (red Point Three Down)" and therefore the resolution issue. I must be an idiot or something cause I still can't get it.

 

[Spydertrader]

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2009435>

.... and Exit into the close ....

- Spydertrader

 

[romanus]

Quote from TIKITRADER:

I posted this chart on 7/24/08 at 1:48pm.

http://www.elitetrader.com/vb/attachment.php?s=&postid=2005922

Looking back on this, It looks as if there was a traverse in place and no signal for change at the traverse level. Is this correct?

The day fanned as it went on as far as no change signal.

Then I would have entered short on open and held till EOD because of no signal for change on the traverse level?

Spyder's Charts:

http://www.elitetrader.com/vb/attachment.php?s=&postid=2005663

http://www.elitetrader.com/vb/attachment.php?s=&postid=2006028

http://www.elitetrader.com/vb/attachment.php?s=&postid=2006205


Any feedback is appreciated.

It looks to me like there's a red channel, which was decelerated (fanned outward) and became brown. There's plenty of traverses inside both, and since traverse level change exists where one traverse ends and another begins then logically there's plenty of those (traverse level change signals) as well.