Lateral Movement on increasing volume or an IBGS means continuation to you? You all know what happens next (as the market has shown), and since I often have a very specific reason for choosing particular examples for homework, perhaps, you should focus and 'see' what you have missed. Obviously, 'Hold Short' is not the answer. - Spydertrader
then relax... push the chair back... go make a cup of coffee... go for a walk... and come back with a fresh mind. ;-)
My annotated chart with how I saw things. I did not see all of the CHANGE/CONTINUE SIGNALS that SpyderTrader did but I will review the charts a bit more at lunch and maybe notice a few signals that I missed.
Start with the ES bars mentioned and 'see' why we have continuation or change (using Price and Volume only) for each bar. Then, look to the YM and 'see' what the YM has said to do. Since the YM leads the ES at Points of Change, we follow the action indicated by our decision resulting from the analysis of the YM (available due to thorough monitoring and annotation). Hopefully, the above paragraph indicates why I encourage people to insure they have a rock solid foundation at each point of the process before moving onto the next step. - Spydertrader
Sorry, I totally missed the differences in applying the logic of lateral movement in describing how price moved vs. determining continuation/change bar to bar. In our case the data set is sufficient : 1100 - price moved in dominant direction on decreased volume = change 1105 - IBGS = change 1110 - price moved in dominant direction on decreased volume = change
Now, what does the YM say for each ES bar in the original example? What action is required? - Spydertrader
________________________________ Sorry... I didn't think that my question looked like an invitation to some kind of debate If my posting wastes someone's time just let me know Thanks anyway...
1. I provide advice on where to locate the answer to a question you posted. Instead of following that advice, you repeat the question - twice. 2. I then point out how debating an answer doesn't equate to locating the answer oneself. 3. You decide I have implied your posting is a waste of time. See any red flags here? - Spydertrader
ES 10:50 - Change (to long) - BO of a pennant on decreasing red volume 10:55 - Continuation (hold short) - increasing red volume 11:00 - Change (to long) - volatility expansion on decreasing red volume 11:05 - Change (to long) - IBGS on increasing red volume 11:10 - Change (to long) - decreasing red volume YM 10:50 - Continue (hold short) - BO of lateral formation on increasing red vol 10:54 - Continue (hold short) - increasing red vol 11:00 - Continue (hold short) - BO of lateral formation on increasing red vol 11:04 - Change (to long) - IBGS on increasing red, return inside prev bar 11:10 - Change (to long) - BO of pennant on decreasing red vol -Au
My attempt : ES: 10h50 = "A"= DRV and LL; "D"= "Change" ; "A"= "Long" YM:10h50 => Incr Red ; "D" => "Continuation" ; "A"= "Short" ES: 10h55 = "A"= LL on IRV ; "D"= "Continuation" ; "A"= "Hold Short" YM: 10h54 => More Incr Red ; "D" => "Continuation" ES: 11h00 = "A" = DRV & LL ; "D"= "Change" ; "A"= "Reverse to Long" YM: 11h00 => IRV & Lat FBO ; "D" => "Change" ES: 11h05 = "A"= LL in IRV but IBGS Up ; "D"= "Change" ; Action = "Hold Long" YM: 11h04 => LL in IRV but IBGS up ; "D" => "Change" ES: 11h10 = "A"= LL on DRV ; "D"= "Change" ; "A"= "Hold Long" YM: 11h04 => Increasing Red and IBGS up ; "D" => "Change" Struggling with why "change" signals happen on the market ! - Price struggles to move forward ? - no more buyers/selleres for a specific price ?