Bar # 60 on my data and charting does not fall into lateral movement as it looks like others have lateral movement there. This is the retrace in the down traverse I have annotated.
How, then, do you differentiate between 14:05 and 11:10 and 12:20? Again, I have not indicated anything incorrect or correct about your response, but don't all these bars look the same? (This is fun being on this side of things for once - playing the role of devil's advocate. ) Read the definition provided for Peak Volume again, and this time, read every word making sure to understand the meaning of every word. - Spydertrader
To assist in the discussion (since I had to go look up the quote and before it gets too far down the results page...) -Au
No, what it means is that after BO of the lateral 1000eob market built a tape as it moved from pt1 to pt2, then it went into a lateral formation, wchich became lateral movement later. The lateral movement was built as a retrace in a traverse ( by this I mean like non-dom traverse in a channel, except one level lower in the tape/traverse/channel hierarchy). So you have a tape followed by retrace. then after lateral movement BO 1145 eob the trans resumes and then forms another lateral movement. There are some instance of increasing red volume, but all from formation/pennant BO's with no follow up on next bar - so the trend did not change. Even the increasing black on 1445 eob comes from lateral movement BO and the next bar is black on increasing volume - so there's no change in trend here either. This drill Spydetrader suggested is freaking unbelievable - for every change signal that 'seems' 'right' in real time there's another one in the opposite direction that tells you the trend did not change, so you need to reverse. There's some beautiful structure here that I can't grasp. The inability to write this up on a board in clear unambiguous form, like an elegant proof that makes you go "Wow!", is driving me nuts Being one of those people with science background, that Jack mentioned, have the most trouble learning these methods, I sometime feel like I am inside one of those convoluted topological abominations, feeling like an answer is right here in front of me, except in a different dimension.
I saw this lateral as a non-dominant retrace of a forming CO channel from the close yesterday. The BO was PT3. I may be alone in this view, but it is how I annotated and saw the morning unfold. I saw this as a VE of the PT3 channel formed. The bar that peeked its head out then ducked back in - I saw as an FTT of that channel (And I was looking to fan as volume suggested a trending day and the trend had been established) From there on out it was hold, hold, hold until about 1:40PM ET (as I saw it) and then again at 3:00PM ET. I would imagine he has quite a few up his sleeve
Therefore dV2-3/dt > dV1-2/dt and with dt fixed at 5 min, then (V3 - V2) > (V2 - V1) and unless I don't know what a slope acceleration is or unless something else is meant by 'slope acceleration' then I believe treeline is correct, 10,001 is >10,000. I'm still recovering from that brutal thrashing with the 2x4 so if I'm wrong, I'm going to take another day to recuperate. lj
OK, so we now have the necessary conditions for Peak Volume: 1. acceleration of the Gaussians Slope 2. three bars All we need now is to locate the sufficient conditions for a Volume to be Peak. The only thing I was able to locate using search function is this: http://www.elitetrader.com/vb/showthread.php?s=&postid=594035#post594035 "The concepts of Dry Up Volume (DU), First Rising Volume (frv) and Peak Volume are continuing themes throughout the teachings of Jack Hershey. I have seen Jack define the three concepts as follows: du Volume: Lowest volume prior to a volume breakout frv: 3 times du Volume Peak: 2 times frv" This however is from the equities part of the journals, so it may or may not apply here. Looking forward to finding out what Peak Volume really is.
Thanks to Aurum for reposting Spydertrader's definition: "Peak Volume also needs three bars to create acceleration of the Gaussians Slope." I left out the word "slope" in my first attempt. I think part of my original answer is correct in that the increase in Volume from Bar 2 to Bar 3 must be larger than the increase in Volume from Bar 1 to Bar 2. I think my mistake was in not recognizing that the 2nd increase must be large enough to create an accelerated Gaussian Slope that's visibly noticeable on the chart. In my example, the increase was 10,000 from Bar 1 to Bar 2 and 10,001 from Bar 2 to Bar 3. A one contract difference would not be enough to create an acceleration of the Gaussians Slope.