Iterative Refinement

Quote from Spydertrader:

Such assertions make little sense in light of how the Price Volume Relationship works quite effectively on a 30 minute and / or Daily fractal when applied to the equities markets.

- Spydertrader
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I've been wondering for some time and doing some monitoring on the daily timeframes......why are equities the next level of effective extraction? Aren't the benefits of the futures markets (taxes, execution etc.) still good reasons to trade a longer time frame?
Jack has said for years (decades) that profits should be swept out of day trading and into equities but I'm wondering why? Have I missed something?
 
WGTrader,

thanks for the document. Actually it is one of the documents I found which try to explain the gaussians and I think that I saw you already posting it at the beginning of Spyder's first Futures journal. Yes, it's helpful (somehow) but I still can't map the nice graphics with the "mess" I see in reality. I will work on that.

ptunic,

your post together with looking again at WGTrader's document some how helped (at least I had a little "aha") but I will have to reread it a few more times in order to see how I can apply that information.

ticktrade,

thanks for this feedback. After I drew the first red channel I noticed that I could also draw my second green up travers but somehow both the right channel line and the right traverse line overlapped so I couldn't draw it but instead only drew the left traverse line. Now after reading your comment and looking again at my drawings I wonder what went wrong. Could it be that my first green and red traverse are wrong as well? Aren't those correct traverses? Both look structurally similar to me at the moment. Tapes + lateral movements. Thanks again, that's important information.
 
Quote from frenchfry:


ticktrade,

Could it be that my first green and red traverse are wrong as well? Aren't those correct traverses? Both look structurally similar to me at the moment. Tapes + lateral movements. Thanks again, that's important information. [/B]
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Both the first traverses do look similar but you need to confirm with volume. If one used the ym they would have been completed sequences.
The green one is confirmed by volume and the red one is not. I did not see IRV so I fanned the green traverse. I drew them the same as you but they are more like big tapes building a sequence IMHO.
We had an increasing blk gaus. than dec red so we know we need another inc blk minimum before we look for change.

FWIW, I found the preflight unclear. we ended the previous day with completion and needed more IBV. I dont see a return to blk dominance, but I don't fully grasp that yet and since bringing the ym into play more, I dont worry about it.
Anyway since I was unclear I just took SOC bars. At 1005 I had sc and change, gaus told me pt2. Not sure if CO context was looking for pt3 dn I took the change signal, we ran a dn seq unconfirmed by vol with the 1030 bar another SOC, get long and now I was comfortable with the right side of the market.
 
Quote from ticktrade:


The green one is confirmed by volume and the red one is not. I did not see IRV so I fanned the green traverse. I drew them the same as you but they are more like big tapes building a sequence IMHO.
We had an increasing blk gaus. than dec red so we know we need another inc blk minimum before we look for change.
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Inside the 1st lateral of the day the price is moving p2 ->p3. Both IBV bars after the lateral ends have their incr. volume as a result of lateral BO and spike bar. If market is still to transition from non-dominant to dominant, then the sequence for up traverse does not seem to be completed to me. Spike and lateral BO both represent instances where one can see increasing volume while price is still moving in non-dominant fashion (as in p2->p3):)
 
Quote from romanus:

Inside the 1st lateral of the day the price is moving p2 ->p3. Both IBV bars after the lateral ends have their incr. volume as a result of lateral BO and spike bar. If market is still to transition from non-dominant to dominant, then the sequence for up traverse does not seem to be completed to me. Spike and lateral BO both represent instances where one can see increasing volume while price is still moving in non-dominant fashion (as in p2->p3):)
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I understand that but not your point. Are telling me you held short looking for a pt3 dn though that or were waiting for pt3 dn. If you read my FWIW comment, I mentioned I was unclear about carry over effects so was taking signals off the ym sequences until clarity on the es arrived. I'm a little slow at times so a deeper explanation of what you were seeing would be appreciated. I knew 1005 was change but not sure if it was pt2 up or leading to p3 dn from carry over. Either way I was prepared and felt I was on the right side of the market for my fractal.
 
Quote from charts:

... pre-flight anybody ? ... where is ES at traverse level ? ... at channel level ? ... :)
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How about you post your chart with your thoughts, we go from there.
 
Quote from ticktrade:

How about you post your chart with your thoughts, we go from there.
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... insecure ? ... shy ? ... :)
1500 FTT of up channel ...
non-dom down to channel RTL ...
... first (accelarated) down traverse incomplete ... lateral in progress ...
 
Quote from charts:

... insecure ? ... shy ? ... :)
1500 FTT of up channel ...
non-dom down to channel RTL ...
... first (accelarated) down traverse incomplete ... lateral in progress ...
More...

Nicely done.
sounds like you have a plan to go with.
I had pretty much the same. 1-2 of dn move. looks like pt2 at EOD and expecting we are starting a dn channel.

I cant always fit the next day into the previous day so I am not the one to comment on these preflights. I either find my way at the open with the ym or wait until price and gaussians provide clarity.
 
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