Any reason we arent comparing orange and blue on both? I assume you are wanting me to see that one doesnt have a traverse after the pt3, however this brings up another issue, at what point we can confirm a channel
http://www.elitetrader.com/vb/attachment.php?s=&postid=2008336 We know that tapes build traverses and traverses build channels. Channels have points 1, 2 and 3. Applying the same logic here, in order for a channel to exist, it would be necessary for a price to build traverses as it travels 1. pt1 to pt2 2. pt2 to pt3 (could also be a lateral) 3. pt3 and beyond To me it seems logical that all three traverses need to be in place for a channel to exist. If you thought that the red pt3 down is a channel formed by orange down traverse, followed by LTR lateral traverse, you would need to see another dominant down traverse, which we don't see in this case. P.S. In case where one channel ends, we know another begins. So when an existing channel ends and we have a traverse that BO's and exits old channel, we know what comes next is another channel, where this traverse would be a dominant one as price travels from pt1 of the channel to pt2 of the channel.
Here's the new annotation of UYG's hourly chart. Not sure if I did it right. It would be nice to see the correct annotation.
http://www.elitetrader.com/vb/attachment.php?s=&postid=1976611 Add the up tape to the last two bars in the picture located in the lower right corner. Then substitute tape for a traverse. The same logic should apply for a channel.
After seeing what romanus just posted, I moved the rtl of the descending channel (counter trend) higher and added more notes.
I don't know how to read candle bars, so I can't even make sense of your chart. Sorry, can't be of any any help.
Just noticed that the 50 sma crossed above the 200sma ( a golden cross) on UYG's hourly chart and added it to the annotation.
Since you have yet to indicate whether or not you now see those previously undetected differences, are you really asking me why I didn't use an example where you already stated you couldn't differentiate? Wrong. Look Again. These two (blue and pink) ... <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2008571> Compared to These two (Orange and Blue)... <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2008572> Still no differences? Edit: Correct Bar coloration is not applied to the bottom chart snip.
Once again, the answers required existed in your own understanding. One simply needed to apply a small amount of critical thinking onto the matter at hand, and bingo, the correct answer reveals itself. Nice work. - Spydertrader