You were absolutely right about that first traverse of the morning. I just can't figure out how one would have permission to seek change where the Spike Bar shown Peak Volume. Both bars with increasing red volume after point three in that traverse are one of the three cases where increasing volume can show up when price is moving pt2 to pt3.
...laterals ended or could not form due to change (one sequence ends and another begins), or IBGS on increasing volume. - Spydertrader Apply this to 0955 bar. 1010 ends the sequence, and gives the signal of change.
and how could that leg be moving to a pt3 with a higher high? Quote from ljyoung: The 10:50 bar completes the sequence which began at 10:05 and the 10:55 bar gives a SOC (peak volume) which can be considered and at this point a traverse trader could reverse and go short. Correct? ----------------------------------------- Quote from Spydertrader: Correct. http://www.elitetrader.com/vb/showthread.php?s=&postid=2069459&highlight=trough#post2069459
955 eob starts the lateral annotated on Spydertrader's chart I don't see any signal for change on 1010 eob (it forms FBP on decreasing red volume). I don't understand what sequence does 1010 end.
That sequence is completed after black returns to dominance on 1050 eob bar. Quote from ljyoung: 1. The 10:50 bar represents a far different thing than the 10:30 bar. Doesn't it? The 10:50 bar is an OB not associated with a lateral and as well shows an IBGS/JW which says to go long (but we should be long anyways). It is also a possible P3 BUT this is not borne out till the next bar, the 10:55 bar, which I've described above. In contrast, the 10:30 bar is the second bar of a sym pennant present inside a lateral formation. ----------------------------------------- Quote from Spydertrader: One Bar represents a 'trough' with respect to volume, and the other represents a return to dominance. http://www.elitetrader.com/vb/showthread.php?s=&postid=2070125#post2070125
I was referencing from 10:05 to 10:20 bars today. Did I misinterpret your original remark? You said "Both bars with increasing red volume after point three in that traverse are one of the three cases where increasing volume can show up when price is moving pt2 to pt3."