Here are my monitoring notes and chart for this morning. This is a good example of why I am getting confused about the relationship between tapes, traverses and channels. I see a long tape from 09:55 to 10:00, followed by a short tape from 10:05 to 10:25. Since tapes make traverses, I assume that this must be tape 1 and tape 2 of a traverse. I see pt3 form at 10:25 and think right, we are starting tape 3. But, along comes an ftp at 10:35 and widens the tape into what must be considered a traverse. What I thought was a traverse, now becomes a channel. So, it would appear that the first traverse of our channel (from 09:55 to 10:05) was a tape.
http://www.elitetrader.com/vb/showthread.php?s=&postid=1942979&highlight=mada#post1942979 MADA post from last November: http://www.elitetrader.com/vb/showthread.php?s=&postid=1676936&highlight=mada#post1676936 (p.s. we all drink from the same cup.)
The formation of a Traverse requires a minimum number of directional changes. However, no maximum number of directional changes exist. In other words, what does a three tape traverse have in common with a Traverse which formed from seven tapes (or any other number of tapes for that matter) as did this morning's traverse? In addition your annotations with respect to the IBGS clearly are not in error. However, you now know these signals for change resulted prior to the formation of your Traverse(s), and therefore, are not on your trading fractal. Something must tell you to ignore the signal for change not on your trading fractal. All one need do is locate that information. One loates it in the 'M' Phase of the M-A-D-A process. - Spydertrader
VISN is showing decreasing PRV today. Exited for 10% gain. Edit: Took a long position in SOLF. Will post chart EOD.
I searched Spydertrader's posts for key words 'traverse' OR 'traverses'. Especially more recent posts (past few months) contain a wealth of information and explanations, which I found to be extremely helpful. See if you can annotate pt3 formation there with pt1 on 1005 eob, pt2 on 1010 eob and pt3 on 1020 eob. So now we have a channel where non-dominant traverse is a pt3 formation. Next stop dominant traverse to take price back to LTL. And we know that this dominant traverse has to be a pt3 formation as well.
Romanus, I'm not sure, but aren't you jumping fractals with your suggestion to regard a channel as being confirmed only with tapes? Why do we have to call something a channel instead of waiting untill the market completes forming a channel (i.e. waiting for a forest to build itself)? This is only a question.
We may have different definition of what channel is, which may at times be confusing, since terms 'channel' and 'traverse' has been used interchangeably. Personally, I called it a channel because its second non-dom traverse is a pt3 formation ( with incr. red volume after pt3)