Spyder, Why do you use the previous bar before an outside bar for your tape. Has that been covered before? I notice that with every OB, your tape begins with the bar inside the OB that formed prior to the OB. Is there a reason for that and is it something that should be in everyones annotations? When you begin a new tape, lets say after an FTT of a traverse.... and then a third bar increases the pace so that a new tape could be made with the two most recent bars....do you use a break of the pace increase tape as your confirmation of point 2 of a possible traverse or the original tape started from the FTT and the bar after the FTT? Ive tried staring and searching posts but I cant seem to definitively answer this.
Actually I found something that might be of significance to my first question. Could you explain the importance of thie attachment? On the 2nd question Ive even tried watching bundlemakers channels video over again and the topic of pace increase in tapes isn't addressed thoroughly either
Jack recently posted his "Seven Cases" (along with an explanation) in this Journal. A review of those "Seven Cases" should allow you to see how one needs to draw in tapes which have either two bars or three bars. I draw another tape. - Spydertrader
Do you consider the break of the pace increased tape's RTL as your point 2 confirmation or the break of your original FTT bar and bar after "tape" it as your confirmation of point 2?
Also I read Jacks seven cases and he says to use Outside Bar as Bar 1, and from the circled situations it looks to me that the OB is not being used as your bar 1, but more of a bar 2. Correct me if Im wrong here.
I annotate the Outside Bar in the same fashion as Jack indicated in his examples. Reviw the hand drawn file. Also, Jack made the 5examples.gif file. - Spydrtrader
Here is my take. I'm not sure, if I understand tapes and traverses better now, but powerpoint for sure.
I'll attach Spydertrader's chart of 7-15-08 midday with the relevant bars for reference. 1. 12:10 EST (close of bar): I see that this bar continues up on IBV and increasing volatility, then forms an IBGS and closes near the low in LM. The IBV is actually DBV relative 2 bars ago. I see that the royal blue Traverse has now widened into a Channel. The third leg of this Channel now consists only of a series of 3 Tapes with progressively flattening slopes. There is no Point 3 and no Traverse yet in the third leg of this up Channel. 2. 12:25 EST (close of bar): I see that this bar continues up on IBV and decreasing volatility, then forms an IBGS with a close near the low, in LM. The IBV is actually DBV relative to the Volume on the previous up Tape. The current bar pair shows a steeper tape than the previous Tape. I see that the third leg of the blue up Channel consists of a green up Traverse. There are no Flaws or VEs yet in this up Traverse. 3. 12:45 EST (close of bar): I see that on this bar, Price changes to up on IBV, then it FBOs both bars of the SP and closes below midbar in LM. The IBV is actually DBV relative to 2 bars ago. The Tape of the current bar pair has the same slope as the previous Tape, and continues that previous Tape. I see that the third leg of the royal blue up Channel now consists of one up Traverse (green), and that this green up Traverse now contains one Flaw and no VEs. I also see that the third leg of the royal blue up Channel is wide enough to anticipate another, fanned up Traverse before a down Traverse forms.
Treeline: Thanks for taking the 1st stab. Let's look at one event at a time. Let's first examine the bars around 12:10 EOB time. We can look at the 12:10 bar, as well as the bars leading up to it. I have marked the time for easy reference. <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=2003101">