Iterative Refinement

[romanus]

Quote from LittleMac:

... situations previously discussed where a BO of the lateral and more increasing volume is needed,...

So far I have seen two situations where BO of the lateral/or formation results in additional data:
1. when in existing trend, BO, in the direction opposite to the trend, on increasing volume followed by decreasing volume bar means the existing trend did not change,

2. again in existing trend, BO, in the same direction to the trend, on increasing volume followed by decreasing volume bar means change signal.

HTH

 

[ehorn]

I have added some notes of how I viewed the morning after review Spyders comments and debrief.

EDIT: I should note also, that where I have written "New PT3 Channel created", On my chart it was actually a CO channel and an FBO as I had it drawn this morning. (Not necessary for the morning signals though). Just wanted to clarify.

<img src=http://elitetrader.com/vb/attachment.php?s=&postid=2018335>

 

[romanus]

Quote from LittleMac:

I understand and agree with you on the first traverse. The second dominant traverse is what gets me. If we could do the ehorn drill with that one showing tapes Id appreciate it

....Id say the 10:40 to 10:50 end of bar are our dominant down tape. The 10:55 and 11:00 bars are our non-dominant tape. A lateral starts from the 10:55 close of bar. At 11:15 a break of that lateral retrace occurs followed by the next bar 11:20 end of bar showing increased red and our final dominant tape. So although 11:15 is where our pt3 lies it is not confirmed until 11:20 increased red volume. Feel free to correct me where I'm wrong. The signal for change on this third traverse(second dominant traverse) escapes me although I believe I read it was peak volume.

I saw it differently.

 

[LittleMac]

Quote from romanus:

I saw it differently.

I saw it even slightly differently(leaving in the parts that confuse me

 

[romanus]

Quote from ehorn:

I have added some notes of how I viewed the morning after review Spyders comments and debrief.

If channel is built from traverses, don't wee need to separate all three entities (dom traverse, no-dom traverse, 2nd dom traverse) on annotations as in this red down channel:
http://www.elitetrader.com/vb/attachment.php?s=&postid=1987687

 

[LittleMac]

Quote from LittleMac:

I saw it even slightly differently(leaving in the parts that confuse me

Please not although it doesn't look it the Jokari change is on bar close of 10:20 just as romanus has it.

 

[ehorn]

Quote from romanus:

If channel is built from traverses, don't wee need to separate all three entities (dom traverse, no-dom traverse, 2nd dom traverse) on annotations as in this red down channel:
http://www.elitetrader.com/vb/attachment.php?s=&postid=1987687

Sounds good to me... Very good

EDIT: Then we need to change my note: "WMCN for BO" to something like "PT2-PT3 retrace of Final DOM traverse"

<img src=http://elitetrader.com/vb/attachment.php?s=&postid=2018375>

 

[romanus]

Quote from LittleMac:

I saw it even slightly differently(leaving in the parts that confuse me

1. Looking at your pic I can not figure out to what bar the annotation "FTT JOKARI" refers to.
2. What makes it a lateral traverse is the follwoing logic :
A) one traverse has ended
B) when one traverse ends another begins
C) at any given moment price always resides inside some kind of traverse

a) the first dom traverse has ended, as it has went through the sequence of pt's 1,2,3 and change signal
b) when one traverse ends another begins
c) price resides outside the trendlines which bound the first dom traverse

 

[LittleMac]

Quote from LittleMac:

Please note.... although it doesn't look it.... the Jokari window change is on the close of bar 10:20.... just as romanus has it.

 

[romanus]

Quote from LittleMac:

Please not although it doesn't look it the Jokari change is on bar close of 10:20 just as romanus has it.

I am sorry, English is not my second language, it's not even the third, so take pity on me, as I am having trouble understanding the above.