I'm beginning to think that ehorn has the right notation in his last chart... The last blue up traverse isn't one since pt2 is inside the previous 'traverse'. Exept when one annotates an acellerated traverse in the first traverse of the red down channel. -- innersky
Thanks for the explanation, WG. So if I understand you correctly, you prefer to trade just the meatiest part of each move. I congratulate you on your consistent profitability. However, it seems you're sacrificing a significant slice of the pie... going short on the 11:30 bar captures about 60% of the move. The long traverse sequence completes on the 10:45 bar, and the next bar signals change. YM presents consecutive signs for change at 10:46 and 10:48. Once short, (assuming 5-minute ES Traverse level trading), continuation is signaled until the 12:15 bar, which offers a good opportunity to reverse long and capture another decent move. If we're genuinely receptive to all the market's signals, then risk need never enter the equation. I'm sure you're much closer to this point than I am, but it's the goal we all aspire to. Calm and enjoyable trading, carving every turn with no stress and no risk.
Hi innersky, I agree that your blue trendlines don't represent the same fractal as the prior traverse. I'm also a little confused as to how you've connected your two red channels. Regards, Neo
What do you mean with connecting the two red channels? After the first red channel follows a green up channel, followed by the second red channel. -- innersky
As I'm sure you know, a channel is a specific thing, constructed in a specific way. Not all of the things you have referred to as channels meet the criteria for being classified as such.
I'm just learning, just as you do. And I didn't say my chart is the correct annotated one. So what criteria do you miss? -- innersky
Innersky, I didn't mean it as a criticism, just a helpful comment from a fellow student. It's always useful to keep in mind that tapes form traverses, which, in turn, form channels. Regards, Neo