On this chart, what is the difference between the laterals bound by the gray vs blue vs magenta boxes? It appears that some of the gray boxes are creating bounds where one would expect a lateral as defined but from your chart some of the first IB of the laterals is not an IB nor hitches.
Knowing the history behind the "bar-to-bar degapping" thing, my short answer is - just forget about it.
What is see is Laterals come in two types, Formations and Movements. What makes them the same is that the current bar starts inside the HL bounds of the previous bar and the volume by end of current bar < the volume of the previous bar. What makes them different is that Formations also have the Close High and Low inside or equal to the bounds of the previous bar whereas Movements can have the high or low outside the bounds as long as the close comes within the range of the previous bar. Confusion arises in that as a Lateral Formation manifests, all subsequent bars that have their close within the Formation bounds are also known as a Lateral. Unless there is a definition are provides greater clarity, these are my working definitions from the examples you've provided. Lateral Movement is a new concept for me. Thank you for having me work it out for myself!
What are your definitions for Formation, Lateral Formation and Lateral Movement? And how they are terminated?
I would define a Formation as small as a two bar comparison and can continue including other bars until a condition no longer exists. ie. a two bar FTP is the similar to a multiple bar FTP. A Lateral Formation is where the current bar's O, H, L, C are equal to or less than the O, H, L, C of the previous bar. A Lateral Movement is where the current bar's O and C are equal to or less than the H, L of previous bar. They are both terminated when there are two sequential closes outside the H or L of the first bar that defines the Lateral. The first bar of the Lateral is the first bar that all other bars are compared to. The first bar of the lateral is not the inside bar. However, this definition is not consistent with the lateral movement you have defined in this snippet starting at 16:10 My working definition would have your 16:10 Lateral Movement defined as a 5 bar lateral initiated by the Sym Pennant. Therefore with your color scheme, it should be blue box not grey.
Hi, sorry for the delay. I'll try to contribute my understanding of End Effects. I apologize if the response is redundant at this point. EE's are from Jack's RDBMS system and they are basically a mechanical way to track sentiment change on the fastest visible fractal; close to the price case container. This P/V stuff has such a varied history that you really need to pick the time period and individual you're learning it from in order to have a modicum of consistency. History of P/V - Various Evolutions over Time For example, Spyder during the Hershey Futures Journal did not even really use lateral formations. CCC was mostly what he referred to low-paced sideways movement as. Then in the IR thread here he introduced lateral formation vs. movement. Finally in the TL thread he abolished lateral movement, and differentiated lateral formations into Sym Confirming and Non-Sym Confirming. So it really depends what alteration of this method you want to focus on. If you try to include every single thing both Spyder and Jack taught over the years you're going to over-complicate things and even get conflicting information at points. The basic principles of volume leading price, the gaussian, and the model of a trend are a constant foundation. But the more detailed material isn't always additive; it has been modified in many small ways over time, and eventually Spyder and Jack diverged on a few points. Jack taught about the gaussian sequence for years along with geometric annotations. Very late in his life he made a pretty drastic shift trying to design a more mechanical volume-based system, perhaps as a last attempt to get this into some format which is easily transferred to prospective students. Rate of successful transference has always been very low across the years. Whether he succeeded is up for debate. I never met or corresponded with any successful students here of the RDBMS system; although Jack did share numerous blotters, charts, and some interviews of a group he taught and worked with daily in his live trading room in Arizona who seemed to be successfully compounding their accounts. What EE's Are In a nut-shell EE's are particular sequences of volume events that are supposed to signal a probable ending to a sub-fractal gaussian sequence coming up, and thus a change in price direction. So take PP1; three increasing volume bars with acceleration. On the third bar when you see PRV signaling a PP1, you watch price [and perhaps finer tools], and when it comes off the extreme, intra-bar, you can take profits on the active trade and perhaps reverse. I understand how to annotate a chart with all of the EE's. Being able to time the intra-bar entries properly and understand how to pass on the failed turns was something I never mastered. Conclusion I have a lot of information about these varying methods floating around in my head but the breadth of concepts and topics and how they changed over time makes it difficult to present. Hopefully that answers some of your question svrs. I struggle with mental illness which comes and goes, and varies in severity, and unfortunately my mind hasn't been quite all there for some time now. I've had to take a long pause with working on trading this stuff as my performance and mental clarity dropped off very sharply. Still somewhat in tune to the markets from an observational standpoint and willing to try to contribute to the discussion as needed though.
Thanks for stopping by llIHeroic ! Your questions and contribution over the years on the threads that I have read and absorbed have made a difference in this trader's life. Thank you so much! I wish for you a transformative healing journey! As for your explanation into the variations of definitions over time, it would make logical sense to me. As I've been working diligently to increase my perception and awareness in the patterns of interrelationships, my own focus has changed to include taking profits on finer and finer distinctions and faster timeframes.
This is what I use Code: Item Bars Conditions Termination Sym ==2 H<H & L>L Stitch ==2 H=H & L<L || H>H & L=L Hitch ==2 H=H & L=L FTP/FBP ==2 H=H & L>L || H<H & L=L Formation >=3 2 bars inside first bar any breach of boundaries Lateral Formation >=3 2 bars inside first bar 2 sequential closes breach of boundaries Lateral Movement >=3 2 closes inside first bar 2 sequential closes breach of boundaries