Thanks ehorn. Personally I also think something doesn't look correct. Especially with the gaussians. What disturbed me at the area you highlighted was this black peaking volume. If that one wouldn't be there I would have a nice, obvious R2R situation. Also just before that area you highlighted there is rising red followed by rising black!? The gaussians I drew are the ones of the fast fractal (or call it tape? or sub?). Which means they follow those trend lines and go from ftt to ftt. That's why when you say: "gaussians do not match Trendlines" this must mean something else: Either those fast fractal trend lines are drawn incorrectly, or the gaussian lines or both. But what I don't see yet. What could also have caused the mess-up is that I started arbitrarily the chart ten days ago. Therefore what I marked as black trading fractal (TF) pt 1,2 and 3 could in fact be something completely different if I had chosen another starting time for my annotations. But at least with the next trading fractal I should start to be in sync again. Correct?
Hi charts, thanks for the tip. You say: "...it would be informative to add laterals...". What information could I have received if I had added those laterals before? How could they have helped me? I added them now but I don't see that I would have drawn the fast fractal or trading fractal lines any different. Maybe they are important for later if I try to carve the turns that happen during the lateral? Another reason why I didn't add them yet is: Jack doesn't seem to draw them either!? At least I don't remember to have seen him do so.
I don't understand the logic here. If the FBP formed by bars 30 and 31 is considered to be a single bar then bar 32 would form an FBP with our "combined" bar. Why don't we also consider the combined bar (30+31) AND bar 32 ALSO combining into a single bar? It would seem to make more sense if bars 30, 31 and 32 were all considered to be one bar, particularly as we have no new translating bar to form a short rtl. This does not seem to be consistent.
Laterals encapsulate faster fractals, helping the trader to stay on the same fractal. If you extend the second lateral until 2 closes outside you better see the fractals.
charts, thanks for taking the time and effort to reply! While I can see what you mean on the first lateral I'm not too sure about the second one. Based on what I understand (which is maybe not what you mean) if I extend the second lateral really that far and if I remember what you say... "...helps to stay on the same fractal..." then that would mean that I would have to fan the black TF again. Much further than the red TF pt 1, 2 and 3 in order to still stay on the same original black TF. In that case I would have to fan it until the first ftt which follows your long lateral. Which would make the last ftt on that chart my new TF Pt 1. Just want to make sure that I really understood what you meant. The second question is: "...until 2 closes outside...". Do I understand this correctly... if I don't have two CONSECUTIVE closes outside of the lateral the lateral movement doesn't end? Thanks.
Firstly: there are dominant and non-dominant laterals (see "context"). Secondly: a lateral lasts until its scope ends. I know that it sounds fuzzy, but again, there are very few, if any, hard rules, especially when you're looking for shortcuts like combining bars in internals and laterals, fanning RTLs, etc.. I remembered Jack's quote, because I thought it being meaningful. I suggest you re-read Jack's quote, then look inside each lateral both at volume and price, at dominance and non-dominance. ...
The SCT / "car driving" analogy made me remember the Racetrack game. Getting more skilled at SCT is like playing Racetrack on finer and finer grids that allow you to squeeze more ... (money / speed). Here there's a java version. <img src="http://upload.wikimedia.org/wikipedia/commons/0/0e/Racetrackgame.PNG" />
ES 7 May 2010 Pt1 of new faster fractal and Trading Fractal at bar 34 (12:20). FF ftt at bar 37 creates TF pt2, and ftt at bar 41 creates TF pt3. This is followed by ftt and FTT at bar 48, where I would expect to going long as the new long TF begins. However, at bar 57 price bo's the green bookmark thereby invalidating the FTT at bar 57 and I am on the wrong side of the market. So, I reverse (with a loss) and fan the orange TF RTL to bar 52 (dashed orange). Bar 61 presents another FTT to go long, but this is bo'd at bar 65, so another reverse with a loss. We then get an FTT at bar 71 to go long, and the bookmark for this is bo'd at bar 73. Another loss. Clearly, if we are to use the green bookmarks to validate/invalidate each Trading Fractal FTT then this is going to result in a series of losses when attempting to hold from FTT to FTT. (note: the gaussians were not adjusted after 13:30 to match the fanned dashed orange TF.)