No, I'm sorry, the picture does not show that and that is why I posted in the first place. The picture shows a down channel (red) being 'steepened' (orange), then a steep up channel (blue) being fanned (green). So in this case the transition from one trend to the other does not go by means of decelleration. If the red channel volatility expansions are not clue enough have a look at the full chart. I really don't want to be nitpicking and this post probably give the impression I do, so I'll try to keep my silence now.
Is there a current link to the explanation of the finalchartscript that Spyder posted on page one of this journal?....the link on page one does not return anything... Thanks Russ
At the close of 9:45-:50 I wasn't sure what sequence was in play. We could have put in a pt2 short using the day's data. The 9:50-:55 bar was black and closed laterally mid bar on increasing volume. Intrabar, the first three minutes looked like the pt3 long had been put in, but then sentiment changed and the volume increased to the downside during the last two minutes as evidenced in real time and by reviewing the 1 minute ES and YM charts. So I believe this created a potential scenario for a lateral move from pt2-pt3 short when viewed at 9:55. Of course this changed on the next ES bar.
----------------------------------------------------------- Thanks R/R, This was an interesting discussion. Thanks Guava for starting it. I can see everyones point of view. All make a good case for the way they saw it. Thanks Spyder for your interjection, the sequence of information seeking tools is making more sense. It appears we all ended up on the right side and had a great situation to learn from.
I don't believe anybody would think that you're nitpicking. Take a look at Figure A in the attached. It is decelleration, isn't it. We can also fan using pt1 instead of pt3 (see Figure B). Notice how close is the purple LTL is to the red CO LTL.(Figure C) Now, the real kicker is 1200 bar on Spydertrader's chart. It does not have increasing red volume. So he can't draw purple LTL. But Figure A shows transition from one trend to the other by means of decelleration. Is it possible that small difference in how volume is reported by qcharts can affect the overall picture of how trend changes? So the closest thing he has to fanned out channel is red CO channel. Besides the order of decelleration vs. acceleration is an artificial one, created by our choice to fan using pt3 to smooth out the channels. If we were to fan using pt1, then acceleration would come first, followed by decelleration.
Hello, I checked this on my charts but I don't see it (using IQfeed). Your 9:56 bar is my 9:54 bar (I use QT) and in fact my stretch/sqeeuze gave a squeeze signal at the end of that bar period. Sure there is a stretch later on when everyone can already see we have increasing black (white circle) regards Ivo <IMG SRC="http://www.elitetrader.com/vb/attachment.php?s=&postid=1959323">
Str-Sq is all in the calculations. I've tried running 3 simultaneously--fixed offset, sma offset, and sma offset with a synthetic index-- and the 3 values were VERY different.