Iterative Refinement

[romanus]

Quote from charts:

...laterals ended or could not form due to change (one sequence ends and another begins), or IBGS on increasing volume.
- Spydertrader

nicely done

 

[charts]

06-18-08 07:57 AM

Three Levels of Trends (Tape, Traverse and Channel) exist in the attached chart. Note the 'signals' of change which develop on each level. Note how the 'sequences' materialize as Price moves from Point One to Point Two to Point Three. Note how the 'Chubby Tape' differs from an actual Traverse with respect to its construction. Note what other sequences (with respect to Traverse or Channel formation) have not shown themselves in this specific example. Lastly, now that Price has constructed a Channel out of Traverses, note what Price must do in order to head back to the channel RTL.

- Spydertrader

06-18-08 09:36 AM

Three More Levels of Trends (Tapes, Traverses and Channel). However, this time we see a different example of how the same sequences of Point One to Point Two to Point Three - Lateral Formation. Note how the Lateral formation (a left to right Traverse [when combined with the Green Up Traverses]) forms the blue up channel. Knowing this, what can we expect from the current (12:40 Eastern Time [close of] ES) Price formations?

- Spydertrader

06-18-08 10:51 AM

Once again, we have a Dominant Traverse (pink down) formed by a down tape, and Lateral movement. As a result, the market creates a wider down channel (red) which creates a need for a non-dominant Traverse. Since Price finds itself so close to a Channel RTL, we monitor for the clues which tell us what must come next. Do we see a Break Out on increasing Volume? Do we see a channel FBO? Do we see Lateral Movement? Do we see a flaw? Do we see a Formation FBO? Lastly (and as always), what does the YM say?

- Spydertrader

06-18-08 11:23 AM

Down Tape (14:10 & 14:15 [close of] ES Bars) followed by Lateral Formation (Sym Pennant 14:15 & 14:20 [close of] ES Bars) forms a down Traverse. Next, Price breaks out on, not only, increasing Volume, but also Peak Volume (14:25 [close of] ES Bar). In addition, the YM (14:24 [close of] bar) also shows Peak Volume, while at the same time, showing increased Volume, but decreased Price Volatility. How many signals for change? What must come next? What did the market deliver?

All Times Eastern.

- Spydertrader

06-18-08 11:53 AM

The market had already provided a Point Three (14:20 [close of] ES Bar) Traverse down - confirmed by increasing Volume (14:25 [close of] ES Bar). The market also provided Peak Volume. Do you have continuation or change at this point?

All times Eastern.

- Spydertrader

06-18-08 01:29 PM

Print Out the charts I posted, and look at them closely. Note how the tapes form Traverses in the same fashion Traverses form Channels. One has only two possible choices: Opposing Tapes or a combination of Tapes and Lateral Movement.

Wash, Rinse, Repeat.

- Spydertrader

 

[romanus]

Quote from bi9foot:

Here is my chart so far.

You were absolutely right about that first traverse of the morning.

I just can't figure out how one would have permission to seek change where the Spike Bar shown Peak Volume. Both bars with increasing red volume after point three in that traverse are one of the three cases where increasing volume can show up when price is moving pt2 to pt3.

 

[charts]

09-24-08 08:14 PM

Now, 11:50 on the other hand, forms a Formation FBO, followed by a change in dominance (increasing red goes to increasing black). One thing has ended, and another thing has started. This occurs after a Point Three and after price exited the Lateral during its non-dominant portion of its sequences. After returning to the Lateral, Price returned to its dominant Volume of increasing red.
- Spydertrader

Attachment

 

[R/R]

Quote from romanus:

You were absolutely right about that first traverse of the morning.

I just can't figure out how one would have permission to seek change where the Spike Bar shown Peak Volume. Both bars with increasing red volume after point three in that traverse are one of the three cases where increasing volume can show up when price is moving pt2 to pt3.

how could this leg be moving to a pt3 with a lower low?

 

[charts]

Quote from romanus:

You were absolutely right about that first traverse of the morning.

I just can't figure out how one would have permission to seek change where the Spike Bar shown Peak Volume. Both bars with increasing red volume after point three in that traverse are one of the three cases where increasing volume can show up when price is moving pt2 to pt3.

...laterals ended or could not form due to change (one sequence ends and another begins), or IBGS on increasing volume.
- Spydertrader
Apply this to 0955 bar. 1010 ends the sequence, and gives the signal of change.

 

[romanus]

Quote from R/R:

how could this leg be moving to a pt3 with a lower low?

and how could that leg be moving to a pt3 with a higher high?

Quote from ljyoung:

The 10:50 bar completes the sequence which began at 10:05 and the 10:55 bar gives a SOC (peak volume) which can be considered and at this point a traverse trader could reverse and go short. Correct?
-----------------------------------------
Quote from Spydertrader:

Correct.


http://www.elitetrader.com/vb/showthread.php?s=&postid=2069459&highlight=trough#post2069459

 

[romanus]

Quote from charts:

...laterals ended or could not form due to change (one sequence ends and another begins), or IBGS on increasing volume.
- Spydertrader
Apply this to 0955 bar. 1010 ends the sequence, and gives the signal of change.

955 eob starts the lateral annotated on Spydertrader's chart

I don't see any signal for change on 1010 eob (it forms FBP on decreasing red volume).

I don't understand what sequence does 1010 end.

 

[romanus]

Quote from romanus:

and how could that leg be moving to a pt3 with a higher high?

Quote from ljyoung:

The 10:50 bar completes the sequence which began at 10:05 and the 10:55 bar gives a SOC (peak volume) which can be considered and at this point a traverse trader could reverse and go short. Correct?
-----------------------------------------
Quote from Spydertrader:

Correct.


http://www.elitetrader.com/vb/showthread.php?s=&postid=2069459&highlight=trough#post2069459

That sequence is completed after black returns to dominance on 1050 eob bar.


Quote from ljyoung:

1. The 10:50 bar represents a far different thing than the 10:30 bar. Doesn't it? The 10:50 bar is an OB not associated with a lateral and as well shows an IBGS/JW which says to go long (but we should be long anyways). It is also a possible P3 BUT this is not borne out till the next bar, the 10:55 bar, which I've described above. In contrast, the 10:30 bar is the second bar of a sym pennant present inside a lateral formation.
-----------------------------------------
Quote from Spydertrader:

One Bar represents a 'trough' with respect to volume, and the other represents a return to dominance.

http://www.elitetrader.com/vb/showthread.php?s=&postid=2070125#post2070125

 

[R/R]

Quote from romanus:

snip

I was referencing from 10:05 to 10:20 bars today. Did I misinterpret your original remark? You said "Both bars with increasing red volume after point three in that traverse are one of the three cases where increasing volume can show up when price is moving pt2 to pt3."