I saw the first traverse as 10:05 to 11:20, where I saw peaking volume. At this point I was looking for a non dom traverse or a lat traverse to give a channel pt3. Price forms a lat from 11:20 to 11:50 and a bo with irv at 11:25 so I was anticipating using this bar as my pt1 for the next dom short traverse. However, price begins another lat at 12:00 overlapping the previous one so I was unsure whether or not this was one large lateral traverse. A sym bo at 12:30 with irv resumes the dom direction but was this a new p3 short or the beginning of a new short dom traverse? We get a chubby tape from 12:30 onwards, which suggests that pt1 for this traverse was back at 11:40 but then the lat traverse would be reduced to a 4 bar retrace from 11:25 to 11:40 which doesn't seem right either. This seems to be one of those confusing cases where a traverse morphs into a channel but I remain unclear as to what the correct annotations should be.
Nice chart Guava. I have a question on your teal up traverse that begins at 13:05. It appears to me that every instance of ibv is a result of formation bo. Based on Spyder's previous advice regarding trends I viewed this as a tape. I would be interested to hear your take on this area. Thanks! John
This was one of my post markets annotations because I too analyzed the price action the way you described in real time. However, upon further reflection and information, I realized that the lateral retrace 13:20 to :30 is the vehicle the market used to produce a Pt3 and the extreme volume that both preceded the LR and followed it represent pace acceleration and thus more than just increasing volume following a pennant or lateral.
Here is my chart for the day (apologize for the missing text annotations, I somehow managed to lose them trying to tweak my scripts) I have highlighted how I viewed in real time the area being discussed. I am still not sure how we completed the down sequence however I will investigate a couple of possibilities. TIKI: Just a comment on your chart. After the down dom sequence I would expect a lateral traverse or an up traverse. The area marked by your green box looks like a leg of a traverse rather than a complete traverse.
Bi9foot, My 12:45 bar does not form a FBP. Also, the down traverse starting at 12:35 ends at 13:05. I placed text concerning this area on my chart. It is certainly worth discussing further, however, since it doesn't fit the traditional form of a traverse.
I read your text on the down traverse...and I see your point. However, how are we to recognize this in real time? I'm sure we can find numerous examples where this pattern would not qualify as a traverse. What makes this sequence unique?