Iterative Refinement

The Same Sequences show themselves on Bars 8 through 15. In addition, note how we see the same exact movement of Price out of this formation (Later Movement) as the previous formation (Bar Five created a BO on decreasing Volume just as Bar 14 did). Bar 15 ends the non-dominant Traverse with a signal for change which creates an FTT on this Traverse and forms the Point One of the next. Since we have a dominant traverse followed by a non-dominant Traverse, we know what must come next.

- Spydertrader

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2059147>
 

Attachments

Quote from phineas j. w.:

I find that I sometimes include a traverses or chubby tape, that you do not include on your chart.
As an example, you annotated a shallow point three traverse starting at 15:15 eob. On my attached chart snippet, I've drawn an additional steeper chubby tape, starting at 15:15.
http://www.elitetrader.com/vb/attachment.php?s=&postid=2058922
Is this chubby tape valid? if not, could you let me know why?
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Quote from Spydertrader:

No. The annotation is not correct if one trades on the 5 minute ES Traverse resolution level. If you trade at a faster fractal (one which uses fine or medium level tools), then the annotation is accurate. Volume has not provided that which must come next on the 5 minute ES Traverse Level.
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http://www.elitetrader.com/vb/attachment.php?s=&postid=2058754

A very important, extremely important comment IMO. I encourage everyone, who is learning to annotate correctly to locate countless instances of pt1 to pt2 dominants with flaws in between bars with increased volume, which can create an appearance of retrace and what may appear as pt3.

That also includes those pt1 to pt2 dominants, which are parts of accelerated traverses (where pt1 of accelerated traverse is a pt3 of a less steeper traverse)
 
Spyder
On your chart for 8 Sept, could you please explain why you did not annotate 14:25 as a p3? You have lateral movement starting at 14:15, which could concievably be a p2, and price breaks out of the lateral at 14:35 with incr volume, confirming what I thought was a p3 at 14.25.

Thanks
 

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Quote from dkm:

On your chart for 8 Sept, could you please explain why you did not annotate 14:25 as a p3? You have lateral movement starting at 14:15, which could concievably be a p2, and price breaks out of the lateral at 14:35 with incr volume, confirming what I thought was a p3 at 14.25.
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You already know the answer to your question.

Ask yourself, "How does increasing black Volume form in what you believe to be a Point Three Up Traverse?"

Check each bar and 'see' what causes the Increasing Black.

Breakouts of formations do not a trend make.

- Spydertrader
 
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