I'll try not to make this too long, but you have several errors in logic at work here. Attached, please find a copy of the area under discussion with respect to the chart posted by romanus and my response (linked in your post quoted above). Kindly note the area highlighted as the discussion points and note the area just prior - circled and recognizable as a formation. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2089821> Compare the above to an annotated copy of your own chart where the area under discussion (also circled) shows just prior to its arrival as different than the area just prior to romanus' chart snippet. One has a Pennant and today shows an 'signal for change' (albeit not for this trading fractal). Clearly, this represents much more than a subtle difference. In addition, your annotations do not match your logic at the time. In other words, you state, 'the need to fan the RTL' using my previous post as a rationale, yet you fail to actually do so. I have added this annotation in blue. Also, you appear to have a slight missunderstanding with respect to the formation of laterals. Note attached chart for correction. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2089822> Also, please check your backup data providers for Volume levels on the 11:35 ES [close of] bar. I show increasing Volume on this bar (as did a few other people today). Had you actually fanned your RTL increasing Volume would have signaled change, rather than, creating a Point Two. Note also the red down traverse which has its end effects on the 11:10 ES [close of] Bar. To Sum Up ... 1. Incorrectly created laterals created a far different context than the market had identified. 2. Correct logic - applied to an Incorrect context -resulted in inappropriate action. 3. Incomplete annotation resulted in analysis errors which created improper conclusions. Note the important role M plays in the above. Thorough Annotation (and oh how I know this sounds familiar) creates an environment whereby the trader can effectively and efficiently receive the correct information provided by the market. Roadmap to the future ... Step One. Focus on Annotation for a few days. Post some charts in an effort to make sure you have this portion down cold. Force yourself to annotate tapes, traverses, channels, pennants and all formations. Focus exclusively on the ES. Step Two. Know the correct context and mode for each and every bar. Know where you sit with respect to the sequences of Price and Volume as the market transitions from Point One to Point Two to Point Three. Know WMCN as the market moves from dominant to non-dominant and back to dominant again. Step Three. When an area of confusion results, transition from 'monitor trading' to 'monitor learning' mode and allow the market to show you what must have been missed. If after a debrief (both intraday and EOD), you still fail to find clarity (or even if you simply want to confirm a hypothesis), post the area requiring input. Step Four. Enjoy the transition from where you are now to where you want to be. Lastly, I have no doubt many can find benefit from the advice posted above. Anyone who feels they still require clarity - should review the advice above - several times if need be - and take the required action steps as outlined. I understand some my be reticent to post, or ask for assistance, and certainly, nobody enjoys having their errors pointed out in public. However, I highly recommend anyone with an interest avail themselves of this opportunity. Good trading to you all. - Spydertrader
You did much better on Drill Two compared to Drill One. Review the answers, and if you still have questions after your review, let's see if we can't clear them up quickly. - Spydertrader
I'll be damned. One has to have a retrace (even in the form of lateral movement) after dominance has changed. That takes care of all issues re: 1155 eob on the 19th as well as 1310 and 1315 eob on the 23rd. Now the task is to firmly grasp the differences between the Pace Acceleration , Pace Increase and Peak Volume. The puzzle is finally begins to unravel. Yahooo!!!
As always, thank you for your time and effort. After drawing those unbelievably poor laterals (no shite - I really do know how to draw a lateral although I'm still learning where to position them), I checked my temperature and sure enough it was elevated. Dx = lateral fever. Clearly it's time to assimilate the important things I have learned in the past few days, regroup and try again. As for enjoying having my errors pointed out in public, you are quite correct - I don't. To do so would be rather masochistic. My attitude towards public errors is one of indifference - I don't care as long as I've learned something, which I did again tonight. Catch you later and good trading to you. lj
One parting question Spyder - a spin doublet. Would it be correct to say that when trading on the ES 5 min traverse level, one must still logically account for and deal with appropriately, correctly recognised signals for change on the intrafractal level and the tape level? TIA and yes - good night and good fight. lj
Thanks. I learned a lot from this exercise upon review! Now I see why you and some others notate the tiny up arrows on each bar that has increasing volume over the previous bar.. initially when I saw those I didn't see them as particularly useful. I didn't realize you could identify the dominant/non-dominant areas purely from the volume/gaussians.. I suspect this will help immensely in annotating the channels.