The market had already provided a Point Three (14:20 [close of] ES Bar) Traverse down - confirmed by increasing Volume (14:25 [close of] ES Bar). The market also provided Peak Volume. Do you have continuation or change at this point? All times Eastern. - Spydertrader
Oops, sorry missed that channel. Quote from Spydertrader: Whenever increasing Volume arrives onto the scene, always look to see if Price has created a Point Three.
I see what you mean. ES 1405 eob exited red down channel moving laterally, indicating that the red down channel has to be fanned out (dashed pink). The entire blue channel represents then a non-dominant traverse. The Point Three (14:20 [close of] ES Bar) Traverse down (green) is then dominant traverse which ended with FTT on 1425 eob peak volume. That became pt1 in the up channel. Where I got lost is all that increasing black volume on YM 1352-1410. So I decided that since the BO bar is increasing volume, the blue channel represents a new trend. The reason I referred to the Point Three (14:20 [close of] ES Bar) Traverse down (green), as a channel is because I have increasing red volume on 1420 eob. Points 1,2 and 3 on three separate bars.
Print Out the charts I posted, and look at them closely. Note how the tapes form Traverses in the same fashion Traverses form Channels. One has only two possible choices: Opposing Tapes or a combination of Tapes and Lateral Movement. Wash, Rinse, Repeat. - Spydertrader