Iterative Refinement
- Thread starter Spydertrader
- Start date
Quote from romanus:
this morning there was no signal for change to complete an up traverse, so I had to keep fanning.
12:20 eob Peak Volume , followed by Jokari window - complete an up traverse now.
Soo..., the up traverse is complete and with signal for change, but the situation looks strikingly similar to the great mystery of 7/29/2008 hold after lateral BO 1145 eob (7/29/2008).
Are we suppose to go into the lateral now and this should turn out to be one big hold unless we get a VE on green up traverse?
I am just drawing the lines here, practicing my 'M', but once in a while can't resist trying to get a preview of what's coming in the 'A' section
Methinks Romanus that one doesn't need a signal for change at the end of the up traverse but rather, as a traverse trader, one only needs to appreciate that we're no longer going up but rather sideways (like today) or down. That's all. The reason for this is that once we have a point 1 we absolutely know we're going to get a point 2 and once we have a point 2 we know unequivocally that we're going to get a point 3.
So unless you want to be a tape trader (who would want to do that?) you ALWAYS just HOLD until you get your point 3 and then when you get your point 3 you ALWAYS just HOLD until you get a traverse level signal for change and if you don't, oh goodee, you start again at point 1 (the former point 3) and repeat the whole thing and just HOLD.
When you combine this logic with the statement: "It's all just (tapes building up and down) traverses and LM's" you're set.
You CAN'T get a traverse level signal for change until AFTER the old 1,2,3 is completed and we already know what that involves. So don't look for 'signals of change' when looking for your point 2 unless you wish to trade that retrace as a tape trader. It CAN'T be a reversal.
What really helped me appreciate this "fact of the market" was doing the exercise you did yesterday, which Spyder critiqued.
I'm off for a little R&R on one of the picturesque "Gulf Islands" [the Canadian San Juan's] and will be away for a week or so. I hope you all have multiple moments of ecstacy while I'm away. When you treat Ms. Market right, she knows how to show you her thanks.
Ciao,
lj
Methinks that what uthinks is wrong because using my logic, I arrive at exactly the same conclusion that jbarnby just arrived at and that is we're still in the first traverse, to which, when uttered by jbarnby, you replied "Excellent!". So perhaps it is that there is something about what I said that you don't comprehend or perhaps it is that I didn't explain things clearly enough, which rarely happens but does occasionally (for purposes of clarification - heh, heh).
lj
My gut tells me there's an utmost significant point made by Avi 8 with respect to no change on 1025 eob.
I am trying to apply some logic here:
At 1025 eob we were still moving from pt1 to pt2.
No change signal before going into the lateral.
Because of how 1220 eob lateral BO developed the current trend did not change
D yes Guava, it works both ways, sorry for doubting you).
So we went into the second lateral while still moving from pt1 to pt2.
BO of the second lateral failed to show more increased volume, so we're still moving from pt1 to pt2 because trend did not change - continuation up.
I am trying to apply some logic here:
At 1025 eob we were still moving from pt1 to pt2.
No change signal before going into the lateral.
Because of how 1220 eob lateral BO developed the current trend did not change
D yes Guava, it works both ways, sorry for doubting you).So we went into the second lateral while still moving from pt1 to pt2.
BO of the second lateral failed to show more increased volume, so we're still moving from pt1 to pt2 because trend did not change - continuation up.