Iterative Refinement
- Thread starter Spydertrader
- Start date
Ivob,
This is my understanding:
Your red traverse has not completed an entire sequence. No increasing red volume after point 3 (at least not that confirms that the dominant direction is down, on this fractal). So even though price BO of your red RTL on increasing volume, it is still a signal to fan out the red traverse.
Phineas,
PS: I believe we should still be fanning the red traverse at 15:30 eob.
I think it looks srikingly similar to "what wasn't that", that happened during the 02-01-08 chat:
http://www.elitetrader.com/vb/showthread.php?s=&postid=1776346#post1776346
Also, take a look at YM 15:02 [close of]. To me it looks very similar to:
http://www.elitetrader.com/vb/showthread.php?s=&postid=1945231#post1945231
Ivo, I'm also stumped by this one. We have a clear Jokari Window Traverse-level change signal at 14:45 EST, when Price moves lower on DRV and does not close in Lateral Movement. Then we get two bars of IBV, the second of which Breaks Out of the down Traverse's RTL. Then we see a SP form on DRV. All of this seems to confirm that the market is building an up Traverse. Then, of course, the 15:05 bar negates the possibility of an up Traverse.
I don't know what Phineas' chart shows, but mine shows 3 consecutive bars of IRV confirming the down Traverse's P3, beginning at 14:20. We even get more IRV on the second bar after it BO's the LM formed by the P2-3 Lateral Retrace.
I will have to study this further after the close...
Damn, somebody is slaloming this baby right now for at least 2 times of today's ATR.Hello,
YM made a confirmed point 3 up at that moment and it was quickly broken on increasing red. This is unlike the example you refer to, but it is indeed a strong sell signal and it told me to be alert for a pennant BO (on the ES) to the downside, which did happen indeed.
All fine, but my point is that after seeing a BO on increasing black volume on the ES I think that we should always see a point 3 up on the ES. At least according to some people this is the case and I would like to be convinced.
regards,
Ivo
One builds a traverse by one of two means: 1- tape->tape->tape or 2-tape->lateral->. A channel is built of three traverses.
So, I've edited the chart I posted and added the 3 points which make the gray traverse. The light blue, wide lines are the tapes which make the traverse. So, this is why I suggest the gray lines compose a traverse.
Which leads to my confusion/question/misunderstanding.... whatever you want to call it. If indeed the gray is a traverse, then I don't know how to interpret the fractal level of the purple, which is also a traverse composed of alternating tapes, but contained within another (the gray) traverse.
And if the gray IS NOT a traverse (ie what I said in the second paragraph above, then I do not know why it's NOT a traverse, or what specifically caused it to convert from a traverse to something else.
Thank you for your reply.