Spydertrader's Jack Hershey Equities Trading Journal III

Status
Not open for further replies.
Avi,

On your chart where the B2B is, couldn't that have easily been a R2R too? since there's higher red volume bars at those areas.. and you can just make the same \/ volume, but with red to red instead of black to black?

that's what's confusing me, 'cuz there's so many black and red bars, you can basically draw any conclusions you want.

hopefully spyder will clarify this some for me.
 
Quote from chiefraven:

Avi,

On your chart where the B2B is, couldn't that have easily been a R2R too? since there's higher red volume bars at those areas.. and you can just make the same \/ volume, but with red to red instead of black to black?

that's what's confusing me, 'cuz there's so many black and red bars, you can basically draw any conclusions you want.

hopefully spyder will clarify this some for me.
More...

Chief-

When I start a chart in hindsight, I approach it as I would in realtime, ie. from left to right. We are in a down channel, the end of this channel is signaled with peaking red volume and a FTT. Black volume starts coming in but is DECreasing, as we expect in a non dom traverse. The B2B is anticipated to signal the BO of the RTL - which is what we got today. This B2B is what is required to start a new up channel. All as expected.

It can't be a R2R because Price has CHANGED direction up. A R2R signals the end of a long channel into a short channel. We have a short channel ending and a long channel beginning. The only gaussian in this case is B2B. The red volume after our new pt 2 is NOT anticipated for a non dom traverse - it is a flaw. We would anticipate DECreasing red volume here. (It looks like there might have been alot of black volume in that large red bar.) Then black volume increases again and price resumes a dom traverse. This is again as expected.

Hope this adds some clarity.

-Mike
 
Quote from chiefraven:

Avi,

On your chart where the B2B is, couldn't that have easily been a R2R too?
More...

No.

Ask yourself which color of volume drives price higher? Which drives price lower? Decreasing or increasing volume refers to the size of the channel, so increasing black develops as price moves higher in an up channel. Decreasing black volume materializes as price moves higher within a down channel. Black Volume moves price higher and Red Volume moves Price Lower. Increasing of each color means price continues to follow the current trend. After an FTT (red circles), we see decreasing volume as price retraces (yellow highlight) toward the right trend line. When price breaks through the right trend line (green highlight), the decreasing volume changes to increasing volume.

- Spydertrader

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1421833>
 

Attachments

Bought 500 shs of GROW today at $29.80 .. Sold at $31.90 for a very nice one day profit..

Volume had exceeded Peak Volume.. time to head for the hills.

Hope others had similar profits today. It was quite a day !!

Whew ! We need more of them !

Regards to all..

Ron In Tucson
 
Status
Not open for further replies.
Back
Top