Well I think your chart looks excellent as I study it. The biggest problem I am having is nailing down the nomenclature. In your chart I see the tapes annotated (thin gray lines). and I also see the channels annotated (P1,2,3's) So the traverses would be considered the fractal between tapes and channel? (i.e. the movement from PT to PT on to the end effects) I am sorry to be asking for confirmation on such an elementary topic. I just want to be certain that I am understanding the concept and communicating it correctly. I am focused on trading the channels you have annotated (PT1 to FTT). That is where my focus has been. So for the day I should be making 1 entry, 3 reverses, and 1 exit (ideally to remain on the same fractal) When I look at your chart there is some real elegance and simplicity (for lack of a better term)... Everything just looks right. Thanks very much for posting it.
Excellent. Now one needs a definition for 'Lateral Movement' which includes all manner of things which create such an event. What types of things cause the trader to 'see' the market as moving sideways? - Spydertrader
I believe you are correct here, that the traverse is the fractal between tapes and channel. However, as I review today's chart it appears to me that some of the "traverses" which I've annotated with the 1,2,3's are actually tapes. In other words, some of them do not have the necessary components to qualify as a traverse. This would suggest that I've jumped fractals...once again. I hope I'm on the right track here!!
She is a slippery fish isn't she Ok, I see that Spyder and Jander are working out some things I need some time to ponder Spyders (and your) thoughts. Thanks for your contributions.
Inside the tapes of the past 3 daily bars July 30 July 31 August 1 Daily bars are taped the same as daily chart, and marked with dates. 5 minute bars inside.
After the tape, we would note lateral movement when the closes of the following bars reside within the hi-lo of the bar that ended the dominant move. We would also need a minimum of 3 bars I believe, as 2 bar pennant will not satisfy our requirements. Decreasing volume will be present through the lateral
-------------------------------------------------------------------------------- Quote from Jander: For sure we need two tapes in one direction, with an opposing, non dominant one. I believe we can also have two same-direction tapes seperated by lateral movement. -------------------------------------------------------------------------------- Excellent. Now one needs a definition for 'Lateral Movement' which includes all manner of things which create such an event. What types of things cause the trader to 'see' the market as moving sideways? - Spydertrader -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- So if I consider (for the purpose of this discussion) that markets are discontinuos (i.e. disregard any carry-over influence for the sake of the discussion). Then applying the principles discussed (yet again ) here tonight to John's chart I see the following: 1st Red channel as dom Traverse Retrace forms as 2nd Blue Channel as non-dom traverse Forming points for 1st Purple Channel Back to 3rd Pink Channel as dom-traverse (which produce end effects for channel) Reset Channel thinking here? In the now? Begin 1st blue channel as dom traverse Retrace forms as 2nd pink non-dom traverse Forming Points for 2nd Orange Channel Back to 3rd green channel as dom-traverse (which produce end effects for channel) Which gives me 2 channels and 6 traverses.
That makes sense to me.. The only thing that bothers me is that last pink traverse. Im not sure why, just sticking out for some reason PS Very cool graphic there TIKI, you found any practical use for it?
given tape -> traverse -> channel and a channel needs a dom traverse + a non-dom traverse + a dom traverse therefore a traverse needs a dom tape + a non- dom tape + a dom tape, thus a dom tape begin a traverse.