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Iterative Refinement
- Thread starter Spydertrader
- Start date
http://www.elitetrader.com/vb/showthread.php?s=&postid=1414480#post1414480Quote from Spydertrader:
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By example, if Price exits a right trend line on decreasing volume, you have a clear indication and signal from the market. The signal says, "You have an incorrect channel." Even if no possible signal existed prior to that point in time, even if no logical method of drawing the new (or fanned in this case) channel existed before this current point in time, the market has spoken loud and clear.
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http://www.elitetrader.com/vb/showthread.php?s=&postid=1382546#post1382546Quote from Spydertrader:
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We don't see increasing red volume here when Price breaks the light green trend line (a clue you don't have the Forest drawn correctly [see above] telling you your 'channels' are off.)
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http://www.elitetrader.com/vb/showthread.php?s=&postid=1449340#post1449340Quote from Spydertrader:
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We note that Price exits the the red down channel on decreasing black volume. However, we know Price only leaves a down channel on increasing black volume. In other words, our Gaussians do not match our channel. The market has informed us that we do not have a correct channel. In such a case we need to fan out our channel in an effort to create a correct channel.
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Quote from romanus:
I think the rule is BO on decreased volume must fan, while BO on increased volume may fan. There's also a post somewhere by Spydertrader, saying if trendline is broken on decreased volume the market is telling us we've got our trendlines wrong. I'll try to find it.
Thanks romanus for feedback.
This is a question I posted yesterday. . .
can a Lateral formation with a bar b/o be a point 1 to 2, or even a point 2 to 3 and be valid?
I am just not sure if it is valid to do.
For anyone just popping in, we are discussing the b/o that occurred on bar 41, I have 12:45 bar 39 ,beginning of a lateral formation, exiting an up traverse.
Green triangle is my entry blue diamond my exit....and NT Entry Exit plot with priceQuote from ljyoung:
Mr. Black,
I really like looking at your charts - they are so crisp (and that is meant as a compliment) but what drives me nutz is trying to figure out exactly what you mean by the various symbols - blue diamonds, base up red triangels, etc. Also when you show your trades I can never figure out exactly where you entered and exited. If you have previously provided a legend could you give me the link and if not could you please provide a legend.
Your Jokari cell migration pictures are very cool, BTW, especially for a 'specimen trader' (that is meant as a joke and a compliment). As best I can tell you are the only person who routinely shows trades and PnL and, FWIW, you have my admiration for doing that. You're also the only trader showing JC migration patterns and that is a welcome addition, IMO.
TIA for any help.
lj
Attachments
Quote from romanus:
I'll try to find it.
Look at the market today. If you fan out, how many repeated signals for change result while the market resumes its upward move (ES 13:20 - 13:35 [close of] Bar)? Does this seem right? Clearly then, the market has shown a subtle difference between today and what you know from the past.
Locate the subtle difference.
Everyone needs to transition from the 'rule based' mindset until they locate the differences which form the rules in the first place.
Resist all attempts to overcomplicate things.
- Spydertrader
re: fan vs. BO
I took Spyder's comments to mean increasing volume at some point after the BO. Obviously if you have the channel drawn correctly, it will be at the RTL. I think some room should be given in case you dont have the exact channel drawn in.. See pic below
I took Spyder's comments to mean increasing volume at some point after the BO. Obviously if you have the channel drawn correctly, it will be at the RTL. I think some room should be given in case you dont have the exact channel drawn in.. See pic below
Attachments
It seemed right for the price going from pt2 to pt3.Quote from Spydertrader:
Look at the market today. If you fan out, how many repeated signals for change result while the market resumes its upward move (ES 13:20 - 13:35 [close of] Bar)? Does this seem right? Clearly then, the market has shown a subtle difference between today and what you know from the past.
I think if one keeps fanning that up traverse, most people annotated, one arrives at the picture that says: "it (the traverse with pt1 at 1105 eob) shouldn't be there in the first place."