I think you are correct. I was attempting to compare apples to auto parts by failing to differentiate between Dominant and Non-Dominant Price Movement. This morning was a text-book Lateral BO causing Pace Acceleration, after which one expects market to move laterally in an effort to create an Accelerated Traverse. As I noted earlier more practice required on my part to see these things immediately as they unfold and not after it's over. EDIT: If one were to annotate that first Lateral of the day as I did, the market creates pt3 and then closes back inside lateral. Dominant black moving laterally can be found in pt1 to pt2 movements. Spydertrader also mentioned that "what lateral provided for me, he saw elsewhere". It may be the increasing red bars prior to the 10:15 [close of] bar (pt3) which are found when price moves towards pt1 of the future up channel. Damn, every bar tells the story. This is like learning a new language.
Spyder, In the attached snip you posted No Trades in this fractal. Is it because we did not get a traverse signal for change at 14:35 after completing sequence. (5 mins bars only) <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=2104591">
Just a follow up to my post above to explain my thought process during that period of time. After 14:35 was done I anticipated a lateral traverse followed by a down traverse to give us a down channel. Once the next two bars closed, I was pretty confident of the lateral traverse. However the 14:50 increasing red bar failing to exit the lateral changes the mode to long and the next bar closes outside the lateral (decreasing black vol) and thought the dominance has switched to up. So instead of a lateral traverse I assumed we are going to get an up traverse followed by a down to build the channel. Hence my interest in knowing how one knows to stay short through this area.
Jack has shared an elaborate template here. I have attached the template I created some time back and used to train my mind to create a routine to sweep for certain things. hth
Meant to do this earlier however I forgot about it until I was reviewing the journal this evening. I posted the following posts thinking bar volatility changes the outcome of the jokari window. Spydertrader later mentioned volatility has nothing to do with it. So please disregrad the posts and appologies for any confusion I may have caused.
Some time ago now, I posted several examples of Laterals. Note how each 'type' of Lateral moves in a non-dominant fashion. When I posted the examples, I wanted everyone to start to learn to 'see' how the market signals the trader to anticipate left to right movement as the future moves into the now. Only two possibilities exist when the market provides such a signal. However, which possibility arrives (as the future moves into the now) doesn't matter because both possibilities result in the same action - hold. Your current 'view' of the market as transitioning from increasing to decreasing to increasing again (in terms of Volume) doesn't provide the most accurate interpretation. Instead, monitor from the standpoint of dominant to non-dominant and back to dominant again. Use the Gaussians as an 'indicator' of dominance in order to have them 'match' the trend lines. On many of my charts, the non-dominant portion of the Gaussians do not have the same color as the Volume bars tracked. In other words, the Gaussian lines track dominant vs non-dominant Price Movement, rather than Volume bar coloration. The subtle difference often sits where one finds the market 'mode'. HTH. - Spydertrader
Correct. The 14:35 ES [close of] ES Bar does provide a signal for change - just not one we use on the ES five minute Traverse Level. In addition, we see another signal for change that we do use on this resolution level (a few bars later at 14:50), but the signal develops within a Lateral. Since we do not trade within Laterals without the use of (at least) medium level tools. This signal does not apply. HTH. - Spydertrader