"As always, context remains key to determining what actions an Outside Bar signals. A trader could see an Outside Bar on Increasing Volume or Decreasing Volume. In addition (with reference to ending a Lateral) an Outside Bar might form with one or both extremes contained within the lateral or outside the lateral boundaries. Lastly, the same outside bar, in a similar context, might close back inside the lateral boundaries - or remain outside it. As you can see,numerous variations of contexts exist which determine how effecacious one should view the Outside Bar. A trader must learn to differentiate each before passing the monitoring phase of the M-A-D-A process." Sounds familiar. Now all I have to do is figure it out. So simple.
Debrief Drill Each new day begins where the market ended with respect to WMCN on the previous market day. In order to discern whether the market has plans to end one thing or whether the market intends to begin another, one must understand where one sits with respect to the right side of the market. 1. Take a screen shot of your current chart annotations. 2. Erase those annotations. 3. On Friday, 13:20 through 15:15 represents a channel. Begin with Friday at 15:20, and annotate until the market has indicated it has completed its sequences. 4. Compare your results. Some will correctly notice their annotations correctly match. Some will notice their annotations incorrectly match. Others will notice where they failed to thoroughly annotate. 5. A chart screen shot must acompany all comments or questions. - Spydertrader
I will get to work on this Spyder, would you please clarify one thing for me. Do you mean to infer that this period is the final traverse of an up channel or that this period (in and of itself) represent a dom/non-dom/dom traverse? Thank you,
Answer: B The entire period 13:20 - 15:15 represents a channel having dominant, non-dominant and dominant (again) traverses within it. Anyone who did not 'see' things that way on Friday, or who still doesn't 'see' things that way now, might want to review that area in the future. (All times Eastern and [close of] ES Bars) - Spydertrader
Maybe you'll find this helpful: 13:20 to 15:15 begins as a Traverse, but later expands (widens out) into a channel. HTH. (All times Eastern and [close of] ES Bars) - Spydertrader
Then what must come next is another channel. I have annotated red down channel beginning 1520 on Fri and ending 1105 today. (Two pink traverses and lateral traverse, shaded green). WMCN is then another up channel. I have blue point 1 at 1105. Except I can't seem to figure out how to turn what seems to me a traverse (blue) with an accelerated traverse (green) - I don't see a way to annotate the 1105 to 1250 area as a channel. Then beginning with 1255 I have a down traverse (orange, which originally seemed to me like a channel) - consisting of two faster fractal traverses and lateral retrace. What must come next after the red down channel (1520 Fri - 1100 Mo) is an up channel. It did not.
I will draw the tapes and add pennant and lateral descriptions as well as OB's. May be this will clear things for me then.
Hi guava my comment was only really meant for Spyder, to give him some feedback that his efforts have been worth it for me, despite the confusion I had with some aspects of the recent drill. One significant thing I have changed in the last few months is to go back to logging in pencil and hilighter pens (green and pink) on a log I designed a while back, which helps me listen to the market. This was further reinforced by the excellent work Neoxx has been doing recently and the use and purpose of the log as espoused by Jack. Like you, before I had moments of clarity and made good decisions, only to sometimes be left high and dry on a spike or left short and caught on the bottom of a move. WTF! Only with logging was I able to accurately differentiate the areas where I knew I knew from the areas where I was (in)effectively guessing, willing and hoping. The log prevents reacting to one data element, getting tricked by "movement" and getting lost in context (How did we get here? Glance through the prior rows of the log). A log combined with a properly annotated chart is an honest record of your understanding of what the market is telling you in real time. During debrief, I print out a colour chart, annotate my trades and compare the out-turn with what I thought was going on at the time as recorded in the log. Most of the time if I've made an error it will be obvious within 1 bar, normally the entry bar. This keeps the risk low. Without the log one can become demoralised because it is natural to neglect the areas where you really did know and focus on the areas that threw you - and only remember these. This can lead to a negative spiral. I remain sidelined and log until I know I know and take a trade. 2 or 3 washes in a row and I know I'm not calibrated and I take a break. By calibrated I mean I am seeing the 1,2,3 movement on every relevant fractal on 5 minute and 2 minute charts. More often than can be put down to luck, I catch a move to the second - i.e. the DOM translates and puts me in breakeven wash immediately after my entry. If not, I give my entry bar a chance, but take the hit if it does not close where it should (as I have learned from debrief). A 1 bar loss should not freak you out and I have made peace with that level of granularity given the markets I trade. [All this is on SPI (Sydney) and DAX.] HTH.