If anyone would feel to help, is this channel correct? according to the "rules" spyder points out: if a bar has a higher has it's considered black volume, so hence my question looking back at this, is this not a sym. pennant? this would be considered the subtlety? edit: to me the turquoise channel would be correct, but just to make sure..
The specific anticipated outcome from a FTT is a channel BO and the formation of a traverse channel in the opposite direction. We did not have WMCN for that anticipated outcome. If we identified the 10:35 bar as change and reversed long, the 10:40 bar does not provide a signal to reverse short since it becomes our new potential FTT. The 10:45 bar, however, shows that we have not made the kind of retrace that one expects during the formation of an up traverse channel (trend change) and it is these traverse channels (generally 7-10 per day) that we attempt to catch. Additionally, we would at least like to see the bar make a higher high than the previous bar. Without a true retrace, we can anticipate that the point 3 down will be formed. By EOB 10:45, the market tells us that the lateral is in control and we get back short, anticipating that we are moving laterally from a point 2 to a point 3. We then hold until an overriding signal for change develops. Matching channel slopes and widths provide important clues as well. If the market comes out of one steep channel and into another with a comparable slope, then the trader may not anticipate a point 3 even without much of a retrace. And when thereâs a BO of a larger opposing channel but the current channel does not widen to match the width of the previous channel, it can be a sign that the point 3 wonât materialize and weâll get continuation of the overall trend. I am thankful for the PMâs that were sent regarding this exercise, and I have essentially rehashed what was shared with me. Doing so has provided additional clarity, and I hope it helps others as well. Please feel free to add or edit as you see fit. Thanks.
This is just a heads up. ET has deleted a bunch of older inactive threads. So if you have some that you bookmarked but not saved, might want to see if they're still there, and save ones you don't want to disappear. - EZ
ES for today . Edit: Unbelievable... I was so focused on the trees that I missed the first forest down .