By default, price is unknown as it exits a formation. However, I do not see any type of formation being exited by this bar. What am I missing? -A
Thank you for the chart. Invaluable tool in my attempt to learn. I have been trying to figure out how Pre-Flight check works and I have a question about this morning annotations. Specifically the blue traverse with Point 1 yesterday. Since I am not sure about my own annotations and whether or not they are correct - would I be correct in stating that yesterday the market closed while being somewhere between p2 and pt3 in the sequence?
1. You believe R2R developed by the 12:15 bar. 2. If so, then 12:20 must represent Point Two to Point Three. 3. If so, then 12:25 must represent Point Three (and into the channel). 4. If so, then surely the market showed a return to dominance. 5. Did it? 6. Review my previous post. (All times Eastern and [close of] ES bar.) - Spydertrader
A sufficient data set exists to determine the market closed while moving in a non-dominant direction. Nothing More. All poodles are dogs, but not all dogs are poodles. - Spydertrader
Bang! Flash grenade. AHA! If I apply the same though process to dark green (olive) up traverse which begins with black OB on 13:00 - then : Since the 13:00 black OB bar on increasing volume does not represent a signal for change on 5 min ES Traverse Level, then what follows it (since no increasing volume red bars exist until 14:00) is a non-dominant component of the pink down traverse. A non-dominant component which is formed by means of faster fractal (sub-fractal) traverse. In other words in real time the pink down traverse begins as orange, however due to the absence of signal for change on 13:00 OB bar - the sequence is not completed for a 5 min ES level traverse.
Thanks for the response Spyder. I'm going to have to spend some time digesting this answer because I can see the potential for me misusing this info. and miss actual P2s. Am I right to assume from your answer that in order to have our true P2, we must establish all of the following: 1. A dominant bar that provides our x2x. 2. Followed by a 2 to 3 nondominant movement (retrace / lateral). 3. An established return to dominance on our next move in the dominant direction. The implication being: if 1 and 2 are present, but we do not get a confirmed dominant bar on our following move in the dominant direction; and we then begin to move in the nondominant direction again, then we have yet to find our P2. I had always treated these situations as having our P2 established, but we just hadn't found our true P3 yet. Am I making the correct distinction here? Thanks, -A
No. I provided one way a trader can know for this specific example. I did not provide all the ways a trader should have known for this example. Nor did I provide the way a trader must know for every example. In other words, the answer doesn't represent the important part of the equation. You are very close to the ballpark. - Spydertrader
To me this represents the proof that a universal type of thought process exists which allows one to make correct evaluation of any context. A generalized approach that doesn't feel like it should be any more complicated than some of the basic geometry problems. P.S. I wish I had a better brain.
This is exactly what I have been saying for quite some time now. One only requires sufficient brain power to follow directions. No more. Start with these instructions ... Create thoroughly annotated charts. Fixed it for you. - Spydertrader