Iterative Refinement
- Thread starter Spydertrader
- Start date
YM trendlines drawn in atached are obviously incorrect.
10:58 [close of] YM BO of Lateral Formation/Sym on increased volume.
11:00 [close of] YM provides more increasing black volume.
As such it appears as if the trend has changed.
The dashed lines represent anticipated pt3 up.
I have been trying to figure out the correct way to annotate this area, but have not been successful yet.
Any hints from somebody who knows the 'right' way would be greatly appreciated.
10:58 [close of] YM BO of Lateral Formation/Sym on increased volume.
11:00 [close of] YM provides more increasing black volume.
As such it appears as if the trend has changed.
The dashed lines represent anticipated pt3 up.
I have been trying to figure out the correct way to annotate this area, but have not been successful yet.
Any hints from somebody who knows the 'right' way would be greatly appreciated.
See those horizontal lines in the Volume Pane of your charts? Perhaps, a reason exists for including them. Note how Volume moves from 'just above DU' (at 10:56 YM [close of] Bar) to the 'Extreme' levels within 4 minutes.
Note how Volume first shows increasing Volatility with increasing Volume, but then shows decreasing volatility on increasing Volume.
What you see here is a change in Pace - similar in fact to the recent change in pace which gave ivob (and others) difficulty.
In this specific example, one simply knows to fan the RTL of the Red Traverse because the trend (down) has not ended, nor did the market provide any indication of a change in dominance prior to the change in pace.
HTH.
- Spydertrader
Thank you. I have noticed the same on 12:30 [close of] ES.
The part of "indication of a change in dominance prior to the change in pace" is the subtle difference I was not paying attention to.
Yet another result of trying to place the market 'inside a box' in an effort to shrink down a rule set.Spyder I have a question regrading the pace change as I am trying to understand what it means.
In the area in question, the two bars prior to the 10:56 bar were in extreme pace as did the two bars after (all four bars highlighted). The 10:56 bar was a pennant so the decrease in volume is expected.
So wouldn't we consider that area to be in extreme pace rather than a pace change considering we expect a drop off in volume in a pennant? Is it the huge drop in volume that makes it a pace change?
Confused how a single bar within several bars of extreme volume can signify a change of pace.
Thank you.
