Sometimes it's so frustrating to feel extremely close to an answer and yet not being able to articulate it or have an AHA! I'd like to try one more time before retreating to my cave to do another set of annotation drills. Don't laugh, but I am having trouble understanding what you mean by change occuring on the Traverse Level. Pennant Break Out FBO, Peak Volume or Decreased Volatility on Increased Volume (to name a few), and specifically Lateral Movement on Increased Volume in the case of blue up traverse 07-22-08 (11:30 eob) are the signals market shows as the Price travels from pt1 to pt2 to pt3 of the Traverse and within the Traverse between its RTL and LTL. Or, at least this is what I am seeing on the charts. Following this logic I would place all those signals in the set called: âalways occuring on the Traverse Levelâ The process of elimination would leave the Jokari Window as representing a 'Tape' Level signal for change. But what is the 'Tape' Level signal for change? Does it mean that after this type of signal the tape will BO and another Tape in an opposite direction will form? To end the current traverse another traverse must form in an opposite direction, which can materialize in only two ways sequentially: with [an FTT as pt1] or [VE(LTL touch) as pt1, FTT as pt3]. In both cases an FTT is involved, therefore I monitor for an FTT of the Traverse. I honestly donât get that part. However, this: Once increasing Volume confirms the Point Three channel, the trader then looks for a Flaw / Formation / VE to materialize prior to repeating the above process. the sequences of events ("Do I have a flaw or VE yet?) which unfold in most traverses Since we have change prior to either a Volatility Expansion and / or a Flaw, and since we (more often than not) need a VE or Flaw before we start to think 'FTT' then what we must have before us is⦠The longer a channel remains intact (without a RTL break) the more likely we expect to see the sequence of Point Three, VE / Flaw, FTT materialize. Review and count up the traverses where an FTT happened without a flaw or VE and compare that number to the traverses where FTT followed a flaw or VE. Once mastered you will be able to see what the market is telling us. Until the â¦, we have only the fact that we have not seen a flaw or VE since the pt3 to prevent us from concluding FTT Pre-conditions that make FTT way more likely: VE + flaws seems totally clear to me. Your responce leads me to believe that the answer lies deeper than the sequence of pt3, flaw/VE, FTT. Any hint would be greatly appreciated.
A tape consists of two price bars. Changes signalled by Jokari Window, Peak Volume or Decreased Volatility on Increased Volume can all appear within a tape.
Been there, done that. http://www.elitetrader.com/vb/showthread.php?s=&threadid=113310&perpage=6&pagenumber=918 lj
I stand to be corrected, but for peak volume and V/Vy disconnects, comparisons can be made using more than 2 bars while the JW is restricted to 2 bars. lj
Note this post: http://www.elitetrader.com/vb/showthread.php?s=&postid=1704755#post1704755 and Spydertrader's response in terms of sequences: http://www.elitetrader.com/vb/showthread.php?s=&postid=1704830#post1704830 Are we talking about pt3, flaw/VE, FTT sequences or something else going on here?
I should have phrased my response as '... rigorously 2 bars' with the caveat that given the JW is not a constant of nature, there may be those who can derive something of merit by looking at more than 2 bars. lj
I'll answer before reading on: The first 5 bars of the day create a confirmed Chubby Tape down which has yet to show a Flaw or a VE. Bar 6 is an IBGS, which sometimes can signal change, but this particular IBGS occurs on the lowest Volume bar of the day. Although it doesn't actually create a non-dominant Tape up, Bar 6 is a Flaw (a Stall, if I'm not mistaken).
Before everyone heads too far off the reservation here, allow me to provide the correct answer for the Three of these things belong together ... The examples which belong together are ... Jokari Window (decreasing Volume after increasing Volume) Pennant Break Out FBO Peak Volume The example which stays by itself is ... Increased Volume with Decreased Volatility As to the why for each group, the first group (of three) each requires three bars to create the signal. The Jokari Window has decreasing Volume after increasing Volume. That increasing Volume part has to increase over something. That something is a third bar. A Pennant Break Out FBO also has three bars. Two bars form the actual pennant (FTP, FBP or Sym), while the third bar creates the FBO. Peak Volume also needs three bars to create acceleration of the Gaussians Slope. However, Decreased Volatility with Increased Volume only requires two bars to create its signal. Since we create 'tapes' out of two adjacent bars, this signal for change occurs on the 'tape' level. The other three require three bars and as such form on a Traverse level or higher. - Spydertrader
This is the first 28 bars and the traverses and channels. Channels copy Spyder's chart. Volume overlay has been placed without any tapes. Volume bars show the color of price bars. You can practice taping this area and see the volume relation to the tapes and traverses.