Without the volume it's just me spewing opinion. What needs to be remembered when working with channels is that they are fractal... They are nested. A slow time frame up channel contains faster frame channels, both up and down, and so on and so on and so on. The slower the time frame the more difficult the channel/volume relationship is to decipher due to (unseen) nesting. Nonetheless, "fitting" channel lines to visual only, is similar to curve fitting. There is dominant and non-dominant volume associated with the dominant and non-dominant segments of movement within a channel. For example, a retrace is non-dominant. When a channel is properly constructed, dominance AND non-dominance are visible through increasing and decreasing volume. Declining or increasing compared to what is a different topic. Trends change when non-dominant volume turns into dominant volume in the same direction!. For simple illustration, the move from Point 1 to Point 2 is dominant movement. The move from Point 2 to Point 3 is a retrace. Please note I did not specify a channel slope! A retrace is non-dominant and occurs on declining volume. In an up slope channel you will be approaching or near the lower trend line. In a down slope channel you will be approaching or near the upper trend line. If/when volume begins increasing and price movement continues in the same direction, it's a trend change, or it will be a failed BO. Armed with the only the above, if you pay attention to volume, you will see things. And you will begin thinking that the car in front of you is following you too! Hope this helps a little.
My first reaction to the above is yes... certainly that is a valid way working, and successful traders use it. but I'm doing something that uses volume as a secondary factor. I don't have volume on my chart... but I'm using tick charts to place orders, which reflect volume inherently. How would you describe yourself as a trader, TW? Like, I am a Price Action trader Which to me means I wait to place orders at "Key Entry Points" -- usually found by lines (support/resistance) showing a structure of the market... so I trade the structure of the market! But once the market is there I only place an order if there is a "setup"... which could be described as a pattern... so I am a pattern trader! But I only take the setup if there is a "Signal Bar"... which in essence is a momentum bar... so I am a momentum trader! --- and I haven't even talked about trade management. ...so one of my thoughts to your conversation was that what I do is much simpler than the way you are doing things. ...on reflection, I'm not so sure that is true! LOL
Hooti does this work for you ? I’ve always found waiting for momentum bars is almost always a losing proposition. I have a rule that states I’m only allowed to place buy orders on down bars and short orders on up bars. This is ES only. Es is too choppy to be waiting for momentum.
Nice big 10 point bar on the 1 min, but no follow through. Will we test 3100 today ? Or are value buyers going to bring this up. I'm thinking 3100