I apologize for posting not fully annotated chart. That box annotates the Lateral Movement. Two bars that followed created a Lateral Movement, which in this particular case represents a Retrace in the pink down traverse. You use the word 'traverse' in a little bit different fashion than Spydertrader when describing the market. Nothing wrong about it as long as the substance of what transpired can be expressed. That whole sequence of bars represents market moving from pt1 to pt2. The action for traverse level trader required during such event is hold because the market has not arrived at pt3 yet. In other words there's no permission to seek change signal at that point in time.
Thanks Spyder. As I was writing the other two questions, it occurred to me that you might say what you said. Romanus correctly points out above that there is a certain beauty to it all. lj
Yes there is. Even more so when you accept fully what it does. I think this concludes my posting here. There's nothing more for me to add really. Kudos to Spydertrader for his efforts, and all the best to all the learners. Good trading.
It seems to me that multiple realities exist, each with its own rules, which allow to describe the market and consequently guide one's behavior (pushing the buttons) to extract from market. For the purposes of learning the rules of this particular reality, I guess certain assumptions have to be made, such as trends overlap at FTT which result in either BO or FBO. And since WTF is neither - 14:45 [close of] can not be an FTT, at least according to the rules of this particular reality. But, WTF do I know, I am just drawing lines here, trying to differentiate subtle differences to pass the 'M' portion of the syllabus. All the best to you and thank you for responding to my posts on multiple occasions.
Hi, Sorry but I still don't get it or the answers are not clear at all. My red channel is a valid downchannel isn't it? It has a point 1, a point 2 and a point 3? It is broken on increasing black volume and we are not getting a point 3 up but instead a point 3 down. Wtf indeed Icarus. According to Spyder around 14:40 / 14:45 and the increasing black volume we don't have permission to look for change (right?). So we would continue to hold our short during this period, is this correct? I know there are laterals but so what? The 15:00 bar (on my chart) would be a lateral fbo then but so what? The one and only thing you don't want when you are short is increasing black right? My questions to Spyder are: What is it that did not give permission to look for change arround 14:40-14:45 ? Why was the sequence not completed? Even if we don't look for change we saw change didn't we? regards, Ivo <IMG SRC="http://www.elitetrader.com/vb/attachment.php?s=&postid=2035196">