Bar 2 lets you draw the rtl when the top of the bar occurs. Look a quarter of the way down the first page of your long to see the top put in during the formation of the second bar this is point 3 and you KNOW an ftt is going after point 3. you reverse long when the ftt occurs.
Thre can be an argument on how bar two formed. If an arguement is done then both people use their loggsequence for bar 2 to discuss the sequence of forming bar 2. as both people log the formation of the bar they are also putting in the ltl once they have the slope of the rtl determined. see below:
So the first trade was from 75.5 down to the ftt @ 72.0 more or less. At the ftt a reversal occurree going long. A bookmark is put in to show the wash value if a wash is required due to a market sentiment change from long to short. The bookmark is green in color and it is at a wash trade value. If it is hit then a wash is done AS A REVERSAL TRADE.
Now we go to bar 3 and SEE it is open and going south. right here and now we are on the ball and looking for whatever the market tells us. Look at you logging. The SYM is forming going south. Put in a fan on the rtl. Add an ltl.
Reverse short when price on bar 3 comes to the book mark. You are now short and picking up making money where your first trade left off taking profits. On the ftt of bar 3 reverse long. Bookmark the ftt in green. You made an additional 3 ticks on this trade on the ftt. You are long again and bookmarked.
Look at bar 4 Do you have an ftt? Do you have a VE? No you do not. You hold after you did the wash reverse back short when the bookmark was hit. do you put in this bookmark on the bottom of the bar? No you do not since there is no ftt AND you aree already short.
Bar 5 starts out as a SYM and goes to a FBP. Is it an ftt? Yes it is. reverse long and bookmark bar 5 bottom
we have many trades in by now. some make money others get us on the right side of the market by washing at bookmarked prices. The last money maker was from 72 down to 68.5, only a little ovr 10% of margin. Our total run so far is from 75.5. We go short on bar 6 at the bookmark and reverse long on the bottom of the bar at 66.5 Almost 0 points short from the open and all of the range so far in the day.
We end bar 6 holding long after our fourth ftt of the day. For those who follow the pattern, you can see where we are as the bars of the day pass. we are ahead about 10 points of realized profits and holding long on bar 7. We need to annotate the bar 7 as soon as possible to know that we know about the bar. Not annotating it put you here in your MADA process. Bar 6 gives point 1 and point 2, do you see point 3 happens soon in bar 7? Yes, of course. What happens after the point 3 of a container? An ftt. What do we do on FTT's? We reverse. So do not fail to annotate ASAP!!!!!!