Hi everyone, i'm joining today's annotated chart to this message, trying to apply some principles mentioned in the thread and testing hypothesis. I've drawn purple vertical lines on my chart, the first one is the line from which i have no idea what i'm doing, hence the dark red container not being moved, the second one is the one from which i stopped annotating in real time. Hope to have some feedback on it, i wish everyone a nice day.
Hi baro, thank you for reviewing my work, i see it now lol, i'm definitely missing something fundamental to be operational, it always makes sense when others annotate but when it comes to produce logical annotating in real time i'm kind of lost. I have trouble understanding some concepts, see in the attached image coming from the Price/Volume relationship thread, it feels like it says you can't draw a tape if the volume isn't increasing, and i don't remember seeing such a thing... I also have some trouble with the X2X 2Y 2X tenet, Spyder clearly stated that this is the way any fractal completes, i have no problem conceiving that such a sequence can happen intra-bar at the fastest level, but isn't the first pink BBT(?) you drew on my chart a lot longer than that ?
The way to review older threads is to pay attention mostly to spydertrader's posts, and even those need to be read having in mind that spydertrader was on a learning and refining curve too. Only Jack's posts are the ones that kept providing pieces of the same information over and over with almost no changes, just bringing over time new ways of presenting it from a different perspective. Names like bbt, tape, traverse, channel have different meaning to different persons, but you have to keep in mind that the purpose of the method is to monitor the market so that you can analyze what's happening, and be able to make a pertinent decision how to act (enter / exit / hold). All the annotating has no other use than to make you trade profitably. That's why, independently of the nomenclature you're using, you should be aware of what's happening on three fractals, of which you trade the middle one. The slowest one gives you context; the fastest one gives you precision. In Jack's view, for advanced traders, the middle one is the "traverse" level, or "point to point" (p1 to p2 to p3 to ftt). For beginners the trading level is "channel", or "ftt to ftt". The "channel" is the first visible fractal on which the "pattern" is visible (x2x2y2x). Other people use different conventions, but keep in mind that you have to be able to make timely daytrading decisions. Spydertrader recommended that beginners make decisions only end of bar. That reduces precision and profits, but diminishes the possibility of making costly errors. After all, end of day annotations are made on completed bars only. Not sure how to answer your question about longer bbt. It is probably a matter of the fractal you want to describe. I don't think that the picture says what you mention. It was not spydertrader's, so it was somebody else's interpretation at that moment on his learning curve. As you see, that person used different definitions for tape, traverse and channel than some people on this thread. This thread seems to use a variant of the method invented by Jack, translated for the wider audience and refined by spydertrader, but it is not a method publicly supported by neither of them. This doesn't mean in any way that it can't be used in a profitable way. It's just you probably won't find much support for it in older threads, and you will probably find info that seems to contradict it. Eventually you'll probably end up trading your own variant of the method.
You are right, this is what i've ended up doing on ET threads but this one seems of better quality than what we're used to on here... Does that mean that the skinnier lines (12:20) in the image attached are channels ? Out of three fractals they look like the fastest, isn't a channel the slowest fractal composed of 3 medium ones ? Thank you for your answers they help me reconsider some hypothesis or thoughts i had.
In Jack's view a "channel" satisfies the "pattern". Once a channel completes (ftt), you bookmark it, then you look for a complete "channel" in the opposite direction. If you trade "point to point" at the channel completion you move your stationary window. If you trade "ftt to ftt" the context is done by the next slower fractal. On each fractal you have to also consider ve's and relation between P's (peaks) and T's (troughs). A pattern has 3 P's and 2 T's. Again, this is from Jack. I hope this answers your question about the "skinnier lines", and the "channel the slowest fractal".
Yes this helps a lot, i'm not familiar with the relation between peaks and troughs, considering what i know now i'd say that this was what the bands from the SCT learning from scratch thread were about, but this is the first thread i've read so i kind of discovered this framework starting from the end to the beginning, that got me kind of confused. Your reply does answer my question, but it brings another one too. Does it change anything regarding nesting or sequencing of the fractals ? See in the image attached, if i label my 12:20 container as a channel because it got the pattern, is the next container valid to continue the sequence ? How about my proposition for the associated gaussian which would make it a channel ?
If I understand it correctly: it isn't. That's why I suggested to precisely annotate 1,2,3,ve,m1,m2,...,ftt. They have to satisfy the "pattern" requirements, otherwise you'll jump fractals, especially when the market changes pace. There are only a handful of rules you have to apply in a timely fashion. There's no use if you annotate 100% correctly 5 bars after the fact. You can't (probably) learn this method by putting together a complete set of rules that cover all possibilities, then start trading successfully. The way is to start from the few basic principles (the "pattern"), then iteratively with real-time annotating and after-hours reviewing to acquire the feel and the skill. I'd suggest taking small real-life examples that confuse you, and analyze them until you think you got the right solution. Later on you can come back and review them from the perspective of your later acquired knowledge.
Hi, thank you for your answer. Thanks for that clarification. This is exactly what i'm trying to do... So thanks for helping with that either.
Hi here is today's annotated chart, i snapped multiple shots with the idea of showing what are my ideas at the moment, obviously comments are welcome regarding things i do wrong or didn't even think about, thanks in advance, good evening to everyone.