Iterative Refinement

Quote from Spydertrader:

So begin your sequences with the first bar not contained within the Lateral, what context changes result over those three change signal bars now? Where does the actual signal for change result? Which method of annotation (with or without lateral) does the market indicate as correct?

- Spydertrader
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Please see the snippet.

I annotated a lateral beginning with the 11:40 bar which was killed with the 11:55 and 12:00 bars on increasing volume. The 12:05 bar is the change bar which does not qualify as a peak volume bar because of the falling rate of change of pace. Thus the change here is due to a dominance change occasioned by a 4 bar pennant BO-FBO, beginning with the 11:50 bar and ending with the 12:05 bar. A 12:05/10 symP is followed with another symP which with the next bar produces a pennant FBO change pattern but this is not valid since there is no confirmed P3 up.

As I said previously, annotation without the 10:55 lateral generates gibberish.

Sorry for the late post. See you in the AM.

lj
 

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Quote from Spydertrader:

Study signals for change which result after the formation of a Lateral Retrace, and note first, why the lateral formed. Also, note whether or not 10:10 and 10:15 ES [close of] bars provide examples of bars fall under our 'three reasons' increasing Volume might show up when price moves from Point Two to Point Three.- Spydertrader
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Spyder,

My confusion in yesterday's market action at 10:10 and 10:15 is the result of my belief that we had a Pt3 at 10:05 and confirmed a Pt3 at 10:10. I believed we had a Pt1 at the 9:45 OB and Pt3 at 10:05 (which was a volume trough). Because I thought the traverse was forming its end effects and not price moving from a Pt2 to Pt3, I misread the market.
 
Quote from Spydertrader:

The bar is black, Volume has increased, but now the market informs the trader to expect an upcoming pace change (after this bar). In other words, the trader should know by the close of the ES 10:15 bar that the market has yet to have reached its 'trough' required from the previous pace change (ES 9:50 [close of] Bar) and, prior to, reaching its expected 'trough' another pace change developed. As a result, the trader anticipates additional non-dominant movement. The trader also knows the three ways non-dominant movement can manifest itself (pennant, lateral or retrace).
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:confused: :confused: :confused:

No sense sugar coating it. Totally confused, lost and befuddled about this
 
The Price close of the 10:15 bar disqualifies it as an Acceleration of Pace and the Price close of the 10:50 bar disqualifies this bar as Peak Volume.

I think my new approach is to pull a George Costanza. Whatever I believe I know or think the correct action is, just do the opposite.
 
Quote from Spydertrader:

Geez, this is like pulling teeth.

- Spydertrader
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Hmmm. Although Spyder didn't actually mention my effort, I'll assume that he was referring to it. I'll make the further assumption that said effort was not what he constructed when he responded to what the market was telling him. So let's see what today brings forth.

lj
 
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