Thks db... I agree strongly with your statement on this page: http://www.elitetrader.com/vb/showthread.php?s=&threadid=29005&perpage=1&pagenumber=165 about not thinking about things simply in terms of lines and angles -- but to delve into what the story is behind those lines and angles. (To me) doing this is much much much harder than it sounds -- but I believe this type of thought process is critical for any approach. JT
You may want to look at the two posts following that one. It really shouldn't be all that hard, at least if you're a worker.
Here is the current IT. This IT has been about 8 days long. I anticipate a BO up and a start of a new IT long that coincides with a Failure to traverse the LT short channel.
db - I've had a little time to think about your stairstep trend concept -- I plan on reading your whole thread this weekend... but for starters: Your concept fits in nicely with my current concept of trend channels... to me one of the strongest concepts is how *price* provides support for the test after the BO and a platform for the next rise in the staircase. A violation of this support is a possible warning sign -- simple but good good stuff. further... For me -- when the 'test' portion of the stairstep pushes the 'classic' TL to the right... it's a sign of reduced pace (by virtue of the fact that it just consumed more time to decide to hold) and possible weakness. (in my current world this is a "new pt 3"). After I read your thread I'll post there... posting here now because this might be redundant. Thanks JT
nwb - my lines are really close to what you are showing. Help me out here -- I think you are saying that the first IT was the traversal of the LT channel... roughly 3/8 - 3/16. I believe you are saying the 2nd IT has been the basically sideways movement since 3/16 (the last 8 days). bear with me -- I think we have the same concept -- but I think it's just a matter of semantics. Why not say -- IT1 - strong traversal to the left side. IT2 - first pt3. IT3 - 2nd traversal with stalling at end. IT4 - (potentially) new pt3. In db's parlance we're seeing a test of the lows from IT1. The new pt3 changes the *pace* of the LT (but also carries the threat of reversal). Anyway - I think you are just abstracting IT2 - IT4 (as I have them) into one IT. JT
I agree with nwb -- new pt3 in the works. The market might want to go up against the LT right side TL a 2nd time before it makes an attempt at traversal... we'll know Mon AM. personally... I wasn't surprised to see prices go gunning for the left side TL of the IT up channel... when things turned around 12:00 I knew we we're potentially going up against a new LT pt3. The trouble for me today was around 14:30. I was definitely not going to go for the fake... we did have a vol BO but my instinct said it was a sucker play. (After all the talk about not following the trend yesterday - this took some guts) Don't get me wrong... a long was making $ while I was sitting and waiting... I thought that the longs breaking the overhead R was low probability. I had been watching intently for a down break on the 1min and the 5min. When the overhead R failed to hold and prices continued to march upwards I simply got discouraged and a bit fed up and I took a break at exactly the wrong time. any advice out there on false BO's? good weekend to everyone. JT