Hi everybody, Please forgive me if my question is too basic and if I maybe should ask this in an other thread. This is my first attempt at trying to get the basics right. I would like to know if I understand the concept of tapes build traverses, traverses build channels and dominance vs. non-dominance. Please have a look. I'm sure that in the future I will have more questions as I continue to read past threads, try to follow the discussions and annotate charts. Thank you for your help.
Your tape 1 & 2 are not tapes. Tapes are made of 2 or 3 bars. Your tapes are traverses of the blue channel (listed as a traverse on your chart). Please add gaussians to your postings in the future. Your short entry after point 3 is by the book on the forest level. Concentrate on that level for now.
Price bars with a lower low and lower high are red (12:05), while those with a higher high and higher low are black (11:35). Bar color is not determined by the relation of its close to its open. This is the default condition for some charting software and it is incorrect for the purposes of the JHM (Jack Hershey Method). When one has a rule like the "2 sequential closes" rule it must work all the time, without exception. Thus unless one constructs a new rule by for example saying, "The '2 sequential closes' rule applies at all times except when ....", I am left with the conclusion that unless I have misapplied the rule, Spyder's 'LONG' call was not for a 5 min ES traverse trader but rather for someone trading on a faster trading fractal. lj
I rarely hand out rules. Instead, I prefer people walk through the logic, step by step, in order to learn to understand how the market 'speaks' on each and every bar. To that end ..... <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2129290
Thank you Spyder for the lucid elucidation. Even as I was typing out 'rule' I was thinking, 'Hmm, perhaps contextual situation would be better', but that was then and this is now. Your statement brings to mind a recent quote from Jack http://www.elitetrader.com/vb/showthread.php?s=&threadid=139540&perpage=6&pagenumber=82 to the effect that, "The key orientation in SCT is the WMCN and the IBGS which is done at a place in trading time that is in the very near future relative to the Present where all A's take place on trading platforms. All trading is done in NOW and the last A of MADA is known in advance of NOW since all of MADA at advanced skill levels is done BEFORE NOW." IMO, the pathway to what Jack said involves precisely what you are speaking about and this is not surprising. lj The unexamined life is not worth living.