Iterative Refinement
- Thread starter Spydertrader
- Start date
Correct.
Correct.
Incorrect.
Correct.
- Spydertrader
1st half:
http://www.elitetrader.com/vb/attachment.php?s=&postid=2090821
2nd half:
http://www.elitetrader.com/vb/attachment.php?s=&postid=2091137
The second half is attached with red arrow pointing to the PA. This is an example of PA after which the dominant black did not return. Could you point me to the path that would lead to differentiating PA's, after which dominance returns, from PA's after which the dominance doesn't return. Thank you.
http://www.elitetrader.com/vb/attachment.php?s=&postid=2090821
2nd half:
http://www.elitetrader.com/vb/attachment.php?s=&postid=2091137
The second half is attached with red arrow pointing to the PA. This is an example of PA after which the dominant black did not return. Could you point me to the path that would lead to differentiating PA's, after which dominance returns, from PA's after which the dominance doesn't return. Thank you.
Hello Spyder,
I think I better don't ask how you could know that from 12.30 to 12.40 you have three points to form the up channel. It can't be tapes build traverses build channels etc. Maybe because at 12.30 you had your down channel FTT and what probably would come next is an up channel?
But let me please double check if I understand how gaussians are constructed:
1. Price going up = Black line
2. Price going down = red line
3. Volume going up = Gaussian line up
4. Volume going down = Gaussian line down
If that is correct then I still don't understand why when I see prices going up that you draw a red line (sometimes) and a black line when the go down. Sometimes they seem to be "correct".
I think I better don't ask how you could know that from 12.30 to 12.40 you have three points to form the up channel. It can't be tapes build traverses build channels etc. Maybe because at 12.30 you had your down channel FTT and what probably would come next is an up channel?
But let me please double check if I understand how gaussians are constructed:
1. Price going up = Black line
2. Price going down = red line
3. Volume going up = Gaussian line up
4. Volume going down = Gaussian line down
If that is correct then I still don't understand why when I see prices going up that you draw a red line (sometimes) and a black line when the go down. Sometimes they seem to be "correct".
I don't recall saying what you have attributed to me. Better to link to the words you believe I posted, rather than, force me to 'guess' as to which post you refer. With respect to Gaussians, January 2007 has the Gaussian attachment. In addition, I recently clarified how I annotate the Gaussians in this post.
Also, I remind you of the recent policy change ...
... monitor from the standpoint of dominant to non-dominant and back to dominant again.
Use the Gaussians as an 'indicator' of dominance in order to have them 'match' the trend lines. On many of my charts, the non-dominant portion of the Gaussians do not have the same color as the Volume bars tracked. In other words, the Gaussian lines track dominant vs non-dominant Price Movement, rather than Volume bar coloration. The subtle difference often sits where one finds the market 'mode'.
The Gaussians represent dominant and non-dominant movement. Often, these changes correlate to increasing and decreasing volume. However frequently they do not. Lateral Formations represent one example of non-dominant movement where increasing volume often materializes.
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2179833>
Note how each gaussian accurately reflects the tapes which, in turn, accurately reflect the market's transition from Point One to Point Two to Point Three - and off into the trend.
Hello Spyder,
in order to comply to the new policy please see enclosed chart. ;-). That's the one I was referring to. It's the one romanus used a few posts ago.
The January explanation of gaussians were not the ones that really helped me but I found "Losttraders" explanation from December in that journal which made it clearer. At least that's what I thought until I started to compare them with charts people posted.
Thanks Romanus for the additional input.
I really like things like this:
"...The Gaussians represent dominant and non-dominant movement. Often, these changes correlate to increasing and decreasing volume. However frequently they do not. ..."
I thought SCT is based on binary logic. There should be no "sometimes" or "frequently they don't".
Then I look at the chart snippet and read:
"...Note how each gaussian accurately reflects the tapes which, in turn, accurately reflect the market's transition from Point One to Point Two to Point Three - and off into the trend. ..."
Comparing chart snipped and text I seem to see the confirmation of "frequently they don't".
in order to comply to the new policy please see enclosed chart. ;-). That's the one I was referring to. It's the one romanus used a few posts ago.
The January explanation of gaussians were not the ones that really helped me but I found "Losttraders" explanation from December in that journal which made it clearer. At least that's what I thought until I started to compare them with charts people posted.
Thanks Romanus for the additional input.
I really like things like this:
"...The Gaussians represent dominant and non-dominant movement. Often, these changes correlate to increasing and decreasing volume. However frequently they do not. ..."
I thought SCT is based on binary logic. There should be no "sometimes" or "frequently they don't".
Then I look at the chart snippet and read:
"...Note how each gaussian accurately reflects the tapes which, in turn, accurately reflect the market's transition from Point One to Point Two to Point Three - and off into the trend. ..."
Comparing chart snipped and text I seem to see the confirmation of "frequently they don't".
You seem to see faster fractal gaussians in that pic.Quote from frenchfry:
... I seem to see the confirmation of "frequently they don't".
Try locating B2B for the 5 min ES level and see if that makes things clearer. P.S. I am going to take a break from all this until my head clears - so if I don't respond - do not consider it as a lack of courtesy.
The Price - Volume Relationship does operate on a binary system. Perhaps, you have chosen a 'rule set' for drawing Gaussians which does not operate on a binary system.
In other words, Correlation doesn't equal causation.
- Spydertrader