The Same Sequences show themselves on Bars 8 through 15. In addition, note how we see the same exact movement of Price out of this formation (Later Movement) as the previous formation (Bar Five created a BO on decreasing Volume just as Bar 14 did). Bar 15 ends the non-dominant Traverse with a signal for change which creates an FTT on this Traverse and forms the Point One of the next. Since we have a dominant traverse followed by a non-dominant Traverse, we know what must come next. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2059147>
http://www.elitetrader.com/vb/attachment.php?s=&postid=2058754 A very important, extremely important comment IMO. I encourage everyone, who is learning to annotate correctly to locate countless instances of pt1 to pt2 dominants with flaws in between bars with increased volume, which can create an appearance of retrace and what may appear as pt3. That also includes those pt1 to pt2 dominants, which are parts of accelerated traverses (where pt1 of accelerated traverse is a pt3 of a less steeper traverse)
Spyder On your chart for 8 Sept, could you please explain why you did not annotate 14:25 as a p3? You have lateral movement starting at 14:15, which could concievably be a p2, and price breaks out of the lateral at 14:35 with incr volume, confirming what I thought was a p3 at 14.25. Thanks
You already know the answer to your question. Ask yourself, "How does increasing black Volume form in what you believe to be a Point Three Up Traverse?" Check each bar and 'see' what causes the Increasing Black. Breakouts of formations do not a trend make. - Spydertrader
Crude Posted September 4th in advance. 107.50 close. http://www.elitetrader.com/vb/attachment.php?s=&postid=2054104