Iterative Refinement

[romanus]

Quote from Tums:

i.e.... put away the microscopic detail for now... they will come later.

Start with the Forest... focus your efforts in identifying and understanding a Tree Level Pt3.
If you can do that once a day, it's a pretty lucrative operation.

(I will coin it the Callmate Maneuver.)

;-)

She mentioned somewhere that it was Avi 8, who taught her that set up.
To give proper credit may be it should be called "Avi 8 turn" in the spirit of http://en.wikipedia.org/wiki/Pugachev's_Cobra

 

[Spydertrader]

Quote from phineas j. w.:

1: Is this thought correct?

No.

Quote from phineas j. w.:

2: Is this thought on track?

No.

- Spydertrader

 

[treeline]

Quote from Aurum:

From this comment, I ascertain that peak volume and a pace 'step up' look very similar. Since we know what peak volume looks like, let's see if we can identify the characteristics that would differentiate the two. Additionally, since Spyder clearly considers it important to separate the "goats" from the "sheep" so-to-speak, what is the utility of being able to distinguish a pace step-up from peak volume?

-Au

The utility of being able to distinguish a Pace step-up from Peak Volume is that it allows us to avoid reversing on a Pace step-up, which should actually be a signal of continuation. Peak Volume, on the other hand, is a signal of change, so we should reverse on Peak Volume.

I came up with some hypotheses as to what differentiates the two. I need to look at more examples of Peak Volume and Pace Acceleration to see if these hypotheses hold up:

1. Perhaps Peak Volume only appears after a Trend has been established, i.e., after formation of a Point 3 Traverse.

2. Perhaps a Pace Acceleration (step-up in Pace) only occurs after a period of relatively low Volume levels.

3. This one is after the fact and may therefore be unhelpful in the real time MADA process: Price will not continue in the same direction on the bar after Peak Volume occurs.

 

[ljyoung]

FWIW, I really like the Beelzebub's lawyer approach with no 'gift from Spyder EOD chart' being presumed, dare I say - predicted, but rather being anticipated. FWIWx2, there's lots of interesting stuff in those days surrounding Romanus' "dantheman" chart posting for those who might be interested and no; I'm not doing a 'steel sharpens steel' thingy.

lj aka "Mr. Fuzzy-wuzzy" which of course has a multiplicity of renderings, or at least that's what mi esposa tells me.

 

[nkhoi]

Quote from Spydertrader:

Everything under the sun has a beginning and an end. What begins a Traverse? What creates a Traverse? What ends a Traverse? The market provides these answers.
...

- Spydertrader

2 bars begin a traverse.

 

[phineas j. w.]

Quote from Spydertrader:

A Lateral Formation FBO can provide a signal for change, within ITSELF. No other up/down traverse is required to be in place and confirmed,
No.

- Spydertrader

Thank-you for identifying this as false. I will continue my Monitoring, with this possibility eliminated.

Phineas

 

[gucci]

Quote from nkhoi:

2 bars begin a traverse.

I thought, that each traverse starts from 2 bars, but not every 2 bars begin a traverse.

 

[treeline]

Quote from Tums:

Is it a concept? or a Quantitative comparison?

from 20k to 30k is a 10k increase
from 30k to 40,001 is a 10,001 increase

from 20k to 30k is a 50% increase
from 30k to 40,001 is a 33% increase


... Someone can work out the Range Volume relationship.

;-)

Thank you, Tums, for pointing out my math error. Of course, for us to have acceleration of the Gaussians Slope, Volume must increase at an increasing rate. Therefore, in my example, we would need to see a minimum of 45,001 on Bar 3, giving us a 50.003% increase over Bar 2's Volume. Now Volume has increased at an increasing rate from Bar 1 to Bar 2 to Bar 3.

 

[Aurum]

Quote from treeline:

The utility of being able to distinguish a Pace step-up from Peak Volume is that it allows us to avoid reversing on a Pace step-up, which should actually be a signal of continuation. Peak Volume, on the other hand, is a signal of change, so we should reverse on Peak Volume.

This sounds reasonable - simple and elegant.

I came up with some hypotheses as to what differentiates the two. I need to look at more examples of Peak Volume and Pace Acceleration to see if these hypotheses hold up:

1. Perhaps Peak Volume only appears after a Trend has been established, i.e., after formation of a Point 3 Traverse.

2. Perhaps a Pace Acceleration (step-up in Pace) only occurs after a period of relatively low Volume levels.

3. This one is after the fact and may therefore be unhelpful in the real time MADA process: Price will not continue in the same direction on the bar after Peak Volume occurs.

I started going back and putting together recent posts and charts where Spyder pointed them both out to see what I could see, and then the thought came to me: If it's not peak volume, then it would have to be a pace change. In other words, the final 2 consecutive bars have increasing volume, but do not have an increasing gaussian slope.

It can't be that simple, can it??

-Au

 

[Tums]

Quote from treeline:
Thank you, Tums, for pointing out my math error. Of course, for us to have acceleration of the Gaussians Slope, Volume must increase at an increasing rate. Therefore, in my example, we would need to see a minimum of 45,001 on Bar 3, giving us a 50.003% increase over Bar 2's Volume. Now Volume has increased at an increasing rate from Bar 1 to Bar 2 to Bar 3.

Treeline...

I am not implying you are wrong.
A one contract increase can add to the slope.

I am trying to get people to think from all angles...

What about the range? Should it be in the calculation?