[romanus]

Originally Posted by cnms2 »

In my view, you have a complete sequence down starting bar 71 prev day (1520, open), followed by a complete sequence up starting bar 78 (1555, open). The up sequence ends with an FTT of the accelerated BBT (or whatever level of container) formed by the bars 3 and 4 of today (0940 and 0945, open), its pt 2 being Mon, and pt3 Tue.

Thank you for sharing this. In the attached, bar 1 on increasing volume fails to reach the LTL and signals peak volume, bar 2 is IBGS on increasing volume and it's close breaks the previous up tape drawn from the final bar on the previous day (black arrow pointing to it). Why would one hold through it and not go short? Thank you.

[become]

Romanus, I sympathize with your frustration (though I worry less about binary logic).

As it happens, I went long on bar 2. If it will help, here's why.

Bar 1 isn't peak volume, since the first bar of the day always has far more volume than the last 2 bars of the preceding day. (Your "P" is just marked by an algorithm, and I would drop it altogether, as it registers too many false positives, and misses some real Peaks.)
The ibgs is a subfractal retrace that fails: increasing volume that fails to break the prior bar's low, and retreats substantially from its low. As far as sequences go, I expected to see increasing black to complete the sequence begun the day before, and we hadn't got it yet. So my analysis confirmed my expectations.

I exited on the VE 2 bars later. I remain unconvinced about entering short because of a lower volume VE, just before an important news item - context tells us to expect a reduction in volume. If the news had been a substantial positive surprise, we would have had a big black bar, and would be seeing the preceding 2 bars as a lateral retrace.

HTH

- become

[rs5]

Wednesday 24 February 2010

[cnms2]

Originally Posted by romanus »

Thank you for sharing this. In the attached, bar 1 on increasing volume fails to reach the LTL and signals peak volume, bar 2 is IBGS on increasing volume and it's close breaks the previous up tape drawn from the final bar on the previous day (black arrow pointing to it). Why would one hold through it and not go short? Thank you.

The day starts looking for pt3 up. Bar 1 is usually much larger volume than the 80, 81, so I wouldn't call it peak volume. It sets pt3. Bar 2 is translation on increasing black volume. Its close is a great place to enter long (or wait if the second bar is too early for your level of confidence). Bars 3 and 4 are translations too on decreasing black volume anticipating change. Bar 3's mode is up, bar 4's mode is down (decreasing volume and close outside). Bars 5 and 6 are FBPs on decreasing red volume building a lateral (after pt3). Next bar breaks down on increasing red volume. You could've reversed short on bar 4 (highest high, and highest close), or a little later.

[cnms2]

Originally Posted by PointOne »

Thanks, yes those are exactly the sequences I'm trying to get to work, that must have been what happened. Where's P2 of your 1520 sequence?

I considered 1525 (open) bar (decreasing black volume) as the non-dominant move of that container (incr red, decr black, incr red). Especially during high volume periods, which usually happens at the start and the end of the day, you could have traverses where moves can happen over a single bar (I remember some examples provided by spydertrader)..

[cnms2]

Originally Posted by MomentumMike »

I saw this, but dismissed it because of what appeared to be the invalidation of P1 due to gap removal. Did you view this as a valid double-top with gap removed? Or maybe a down-traverse w/o gap removed?

I don't quite understand your view here... I considered the volume sequence, and removed the price gap. I didn't look for a double top.

[Spydertrader]

Originally Posted by rs5 »

Wednesday 24 February 2010

According to your chart annotations, your 'day' began at 16:00 PM Tuesday. Do you agree with such a statement, or did your 'day' actually begin earlier than 16:00 PM Tuesday? Also, your chart shows a mysterious red Bar as its final (Tuesday) Bar. I do not have such a bar on my chart. IF said Bar represents a function of the charting software (or datafeed), take care not to include said bar in your analysis and decision making. Lastly, you have additional 'laterals' highlighted on your charts (in addition those in The Lateral Formation Drill [and Follow Up]). Make sure you have a specific rule set in place (based on a process of differentiation) for these laterals (in addition to those in The Lateral Formation Drill [and Follow Up]). Otherwise, the automation of these objects may cause you to 'see' things in a far different fashion than required.

(All Times Eastern and [close of] ES Bars)

HTH.

- Spydertrader

[double eagle]

Here's my chart for 02/24/2010.