Iterative Refinement

[romanus]

Quote from treeline:

Two times when a trader does not apply the Jokari Window come immediately to mind:

1. The market is building a Traverse but has not yet shown a Point 3;

2. Price is in a Lateral Formation or Lateral Movement (by "Lateral Movement," I refer to 3 or more bars of Lateral Movement as opposed to simply a single bar closing inside the range of the previous bar).

By 11:15, I see three Point 3's in the up Traverse, based on the way I annotated the day. This rules out #1. But I noticed that Lateral Point 2-3 Retraces can be drawn (aqua on my chart) such that both the 10:25 and 11:15 bars close in Lateral Movement. (I realize that the 11:10 bar closes outside LM, but Spydertrader recently recommended that we require 2 closes outside the Lateral to "kill" it.)

Very well done indeed!
I was so narrow-mindedly focused on finding a mistake in my traverse annotations that I have not even considered the lateral movement as a signal filter. Thank you.

 

[treeline]

If I'm not mistaken I just found a Lateral Traverse in the afternoon as well...

 

[Jander]

Quote from treeline:

If I'm not mistaken I just found a Lateral Traverse in the afternoon as well...

ya .. 13:35 - 14:40 ish ?

EDIT: Perhaps using your previous logic, which made total sense. The lack of more IBV after 14:20 bar ends lateral & begins new down traverse

 

[Mr_Black]

Quote from Miracle:

I have pointed out all peak volumes in today's chart. Can anyone shed some light on why the first and the third one failed?

Thanks.

After you see Peak Volume you still have to wait for sequence completion

 

[Spydertrader]

Quote from Jander:

I thought it was a traverse level change signal, however it appears this answer will need to be corrected.

A Traverse Level Signal for change occurs where one needs to reverse - not where one needs to hold. In addition, keep focused on the correct discussion. Three topics find themselves under consideration at present. Take care not to apply an answer from one discussion onto an area not intended.

According to your post, it appears your correct focus might be to differentiate between a Lateral which forms a retrace and a Lateral which forms a Traverse.

Again, you all already know the answers. Everyone simply needs to pull the answers from their minds.

- Spydertrader

 

[romanus]

Quote from Spydertrader:

...

Again, you all already know the answers. Everyone simply needs to pull the answers from their minds.

This precisely sums up the biggest problem I am experiencing right now. While monitoring today, I correctly identified no change signals to go short prior to 12:50 [close of]. Of course I was cheating by consulting YM when permitted.

But in debrief, trying to figure out what filtered out all those 'other signals', I am getting ready to put my padded helmet and begin head banging yet again.

 

[phineas j. w.]

Quote from Spydertrader:



According to your post, it appears your correct focus might be to differentiate between a Lateral which forms a retrace and a Lateral which forms a Traverse.

- Spydertrader

My understanding:

A lateral forms a retrace, in the middle of a TRAVERSE sequence, moving price between point two and point three.

A lateral forms a new TRAVERSE, also during the formation of an underway TRAVERSE, but at a different phase in the sequence. The new traverse would form after point three but before the traverse level signal for change, on the original traverse.

Phineas

 

[Miracle]

Quote from Mr_Black:

After you see Peak Volume you still have to wait for sequence completion

Thanks Spyder and Mr Black for the direction and explanation. Now I know I need to wait until the domino start falling before taking action. I am going to review all peak volumes discussed here this weekend to make sure the concept and the context sink in.

As I understand, the journey is all about realization. there is no such thing as a quick fix to realization - there are layers upon layers upon layers. As the mind learns to move through each layer the skills and understanding developed here help it to learn how to move through the next layer and so on.

Good trading to everyone!

 

[treeline]

Quote from Jander:

ya .. 13:35 - 14:40 ish ?

EDIT: Perhaps using your previous logic, which made total sense. The lack of more IBV after 14:20 bar ends lateral & begins new down traverse

This is how I viewed it as well.

 

[Spydertrader]

Headed out to the Lake Erie islands for the next few days. Enjoy the weekend everyone. When spending time differentiating, make sure what you believe you see actualy exists. In other words, make sure you don't have a different context in front of you.

HTH

- Spydertrader