How does one know that the channel is forming at 11:15 ? I have seen accelerated traverses followed by channel in an opposite direction.
I'm not sure that one does know. Having had a dominant traverse and knowing that traverses make channels, it wouldn't be unreasonable to anticipate a non-dominant traverse and then another dominant traverse to form a channel. It all depends of course where one is in the sequence.
I don't think one can anticipate anything other than another traverse after the first blue accelerated traverse. Here's an example I was referring to in my previous post: http://www.elitetrader.com/vb/showthread.php?s=&postid=1995057#post1995057 http://www.elitetrader.com/vb/attachment.php?s=&postid=1995275
That would suggest that one cannot anticipate channels forming. :eek: Perhaps this is not critical anyway since we are aiming to trade each traverse anyway. It's just useful to know the context of each traverse.
I think one can anticipate a channel forming. After two traverses, dom and non-dom, WMCN is a 2nd dom traverse, which completes a channel. I just don't think one can anticipate a channel forming based on an accelerated traverse. On unrelated note, I 'see' some similarities between yesterday and 07-15-08 in terms of fractal nature of context for change signals. It seems to me that yesterday signal for change existed for the blue accelerated traverse, but not for the green traverse (which later became a channel). And IMO on 07-15-08 signal for change exists for an accelerated orange traverse but not for a pink traverse (which never became a channel). Some strange and fascinating things.
I encourage you to review what you know as a result of a 'pre-flight check' prior to the opening bell on the day in question. - Spydertrader