By 'clue' you mean it created a signal for change by failing to break out of Sym? And as such one has to monitor closely for mode changing from continuation down while the price is still in the lateral to continuation up when price breaks out of lateral on increasing volume with more increasing volume on the following bar? Blue Point Three Up in the attached is how I understood the above quote. Is my understanding correct? Thank you.
Thank you Guavaman, Romanus and Spyder for your annotation discussion. It was very helpful to me. One of the things I do is collect various posts into word documents and then study them. Here is one on lateral differentiation which I hope will be useful [the collection involves a discussion among ticktrade, treeline and Spyder]. See you all in the AM. lj
This is how I saw the situation. The lat movement beginning at 10:45 gave us p2 at 10:45 and p3 at 11:05. The 11:20 bar (eob) gave us a lat fbo and also a sym fbo on IRV. This gives us p1 of the new long traverse. We have confirmation of the dominant change (to long) at 11:30 (b2b) and this bar begins another lat, providing p2. BO of this lat at 11:45 gives us p3 and also a new p1. A new p2 arrives at 11:50. The interesting thing is that the lat beginning at 10:45 could be considered to continue right across to 11:45 but this would bridge the 2 traverses so I come to the conclusion that the 11:20 bar kills the first lat due to the change in dominance. Spyder, is this conclusion correct?