You are correct and: Regardless of trend the points 1 and 3 are on the right side. The right side is where the Trend Line (TL) is always located. As time passes and as you are striving for a neutral bias, thinking left and right will be helpful for keeping the principles stated and understood in a consistant and simple manner.
The Signal to enter long actually occurred back on Bar 2 (9:35 AM Eastern Time Bar). Bars 3, 4 & 5 created an HVS which under 'Beginner FTT rules' require the trader to 'Hold.' Bar 7 (high 10:00 AM Bar) created an FTT of the Blue (Up) Channel carried over from the previous day. When the market signals an FTT, The Beginner FTT Rules call for a reverse. I'll have my chart posted soon after the 4:15 close. I have highlighted the areas of your interest. - Spydertrader
I see the entry on a bo of the carryover retrace channel and/or the first 2 bar channel but I thought the first fifteen minutes were a waiting period. I did read one post where Makosgu said that synch was only taking about 7 minutes these days. Am I correct in assuming that falling prv on bar 8 is your clue that bar 7 is an ftt in addition to the fact that it was a test of yesterdays high? I am looking forward to your chart.
I do not wait for the fourth bar to enter. I do not see 'waiting for synch' as a requirement. The slowing pace of volume as price ended the bar, plus the failure of price to make it to the Left Blue Trend Line (later confirmed on bar 8) provides the signal for the FTT. - Spydertrader
Yes, I had read those posts. Ok, so an FTT results in a FBO, BO or another FTT. Got it. Here's what I don't get. Lets say you're in a uptrending channel. Price is traversing to the LTL. It's almost there, but you then get a red bar with some decent volume. Do you have a FTT? If so, how are you sure price is not going to move right back towards the LTL for a loss? I guess what I am asking is, what are the exact mechanics of the FTT? Maybe I missed it.
I dont think there is an exact answer. I think Jack said he wasnt too worried about being wrong cause you can always hit the button again.
FTT's only occur when price fails to reach the left trend line (top line in up trend, bottom line in down trend). Once you have an FTT, only three possible end effects can result: 1. Another FTT 2. an FBO 3. A BO Anything else that your mind can create is not an FTT. In the beginning, a trader will (quite frequently) think he / she sees an FTT, when in reality, they see something else. We call these price actions (which look like an FTT at first) flaws. Some flaws include: Hitch, Dip, Stall, HVS, CCC etc. For now, do not worry about locating the flaws, nor concern yourself with their different characteristics. For beginners, Each Flaw requires the same action - hold. If you find yourself in a position where you have already taken action because you thought you had an FTT, only minutes later to realize you had a flaw, simply reverse and place yourself back on the right side of the market. In the beginning, one needs to observe market price action and look for FTT's while drawing channels. In the beginning, you should not push buttons on the simulator. In the beginning, one should simply learn how the price action operates. Think of the observation and channel drawing stage as building a foundation to a house. You'd never start adding walls before you finished building the basement. Same here. Jump ahead too fast in a rush to make it to the next stage, and one can expect the house to fall apart. Good Journey to you. - Spydertrader
1. As everyone is shifting to channel-trading, are the old indicators (MACD(5,13,6), Stoch(5,2,3), etc) still useful in channel trading? How do you apply these indicators to assit your channel trading. 2. How do you use unusual volume to assite your channel trading. Do you trade channels without FRV signal? Do you trade channels ONLY after FRV signal and the pull backs thereafter? 3. Does STEC looks like a rocket base on the data so far? Thanks for your comments.