Iterative Refinement

Quote from Spydertrader:


Begin with knowing that 9:50 through 13:50 represents a dominant down traverse. Start by looking for areas where you may have annotated in a dominant fashion, but the market has indicated the area represents non-dominance.
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Thank you for your help.
 
Thanks very much spyder. My "government level" quality is keeping me in the park but I keep missing some key pitches :)

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Thanks for your direction.

EDIT: I will tape this one to my toilet lid (3 cases, 3 cases, 3 cases) :D
 
Hey Spyder,

I had a question about the up traverse we had at the end of the day. I did not see the return to dominance to complete the sequence during the day. Upon debrief, I'm assuming 14:40 provided the needed dominance to complete the sequence and 14:45 provided jokari window change. Is this correct?

If so, how do we establish 14:40 as a dominant bar, since it was both a BO from a sym pennant and the first bar out of the 14:10 lateral? I was assuming we needed another increasing black volume bar to confirm that bar as dominant. I was thinking maybe the fact that the 14:40 bar went through both boundaries of the 14:10 lateral and closed outside the top boundary might have established dominance on that bar (w/o the need to confirm it's dominance w/ a second inc bar). Is that correct?

Any guidance is much appreciated.

Thanks,
Atari

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2165258>
 

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Quote from Atari:

I had a question about the up traverse we had at the end of the day.
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1. No Lateral exists here - even though it appears as if one could annotate a Lateral. Simply because something looks like a Lateral, does not make it so.

2. We assume non-dominance, until the market proves otherwise. When Price breaks out of a Pennant Formation, a trader says to themselves, "The first Bar is 'unknown' with respect to dominance, but the second bar will let me know." However, this is not always the case. Sometimes, due to the specific example involved, the trader does know, and has certainty, on that first bar (we had one such example a few weeks ago if memory serves). We have another example here.

3. Annotate the tapes in this area, and they should tell you why we know the Bar in question must be dominant. pay attention to the Gaussian Changes as well.

HTH.

- Spydertrader

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2165354>
 

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Quote from guavaman:

I screwed something up since 13:20 was a Pt2.
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You have annotated a Point One (green inside the brown traverse) in the middle of a Tape. Don't think I have ever seen such a thing before. :)

- Spydertrader
 
Are you referring to the 13:30 bar? If so I gave more weight to this bar being an OB than a Spike bar aspect of it. Since it was a OB the sequence needed to complete itself.
 
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