Thanks for that compilation @Sprout. I've pointed out the relationship of VTP with the LTL/RTL/gaussians several times. A step further is addition of the volume bands. Combined, for most the problem is not in understanding (or need for understanding) every single micro price+volume movement, but rather the misunderstood relationship of the visible on-screen methods that are always in play. Too many think of the micro-detail as a grail. The VTP, LTL/RTL, gaussians, and bands is where the money is. IMO of course.
Some deep searching yielding this thread. Jack's posts start on page 8, he gets into Trend Sets toward the end of the thread. https://www.elitetrader.com/et/threads/are-all-price-patterns-the-same-examples.266792/
I'm having my Sunday morning coffee, and all I can think is.... Playing with word clouds on a Saturday night: Not OK!!
A quick reminder/tip to my comrades... From time to time, do MADA on Daily/Weekly/Monthly. Recall we are coming from all-time highs. Keep in mind "trends overlap". Answer the question... where are we?
I put this pdf together today, as I think it has value to young and old, newbie to elder, the struggling to expert. It is Jack critiquing container annotations. I am placing in this thread for furthering understanding of RDBMS, if chosen. From the thread... https://www.elitetrader.com/et/thre...ty-is-where-the-rubber-meets-the-road.195287/
A brief look at a DAILY Dow Jones Industrial... My far-right read is... PP5-P1-P1-PP3-P1-P1 Happy trading!
I received PM in the overnight hours. I will not name names, but there is no reason the discussion, or at least my answers, can not be made in public . I've included a magnified far-right of the previous daily chart. 1) PP5 ... annotate a few bars previous. My analysis says T1 is immediately prior. This T1 is not FS/BOT1 as the BOT1 requirements are not met prior to this T1 being ID'd. After a T1, a T1, P2, Wait, FS, or EE (includes OB's) are possible. The PP5 OB can not be PP4 based on volume sequencing alone as a P1 is not possible. Volume is DV and for either PP4 or PP5, the top level of the OB is invalidated making the OB a nothing EE: it is not a turn, it is continuation. I do not know exactly how the OB formed, but I see it as a 3-legged bar with bullish sentiment. 2) The next volume bar is assigned P1 per the VTP rules. The price bar is XB, the high prices of the XB pair are noted. My stance on degapping bar-by-bar is well noted in threads dating back 5 or more years, plus more recent... I do not, and will not degap bar-by-bar. You however use selective degapping. How do I know? Because the PP5 OB wouldn't be an OB if degapped. PP4 or PP5 does not matter!! Jack says degapping bar-by-bar is required. I completely disagree. You must choose for yourself... It's degap all or degap none (RTH open is exception) in order to consistently make money. 3) PP3. Note that PP5 to PP3 is not recognized on the modrian table. Again a nothing EE: it is not a turn, it is continuation. Again, I also see it as a 3-legged bar with bullish sentiment. I use what I call a reverse modrian sheet which I have hanging left of my computer. I've included a pic. I refer to the actual modrian for n-1 items not listed. 4) What will happen next? First, this is a daily chart, trade is swing-style, not intraday... it takes a complete RTH session for a single bar to complete!! Leftmost is P1. I also note it is 3-legged bar with bearish sentiment, and it is a 2nd consecutive P1. After a P1, a P1, T1, Wait, FS, or EE (includes OB) are possible. If there is another P1, the stage is set for a PP1 or a NOT PP1... BTW, PP3 to PP1 is another nothing EE. I note that there is only one C-turn EE possible from a PP3. My BM/RTL is about 300-350 dow points away. Concisely, there is nothing in the daily chart that suggests the end is here. Off of this chart, swing-trading, I continue to hold long. There is about 300-350 dow points before "change" becomes an appropriate possibility (in the context of swing trading). 300-400 dow points or so for a swing trade based on a daily chart is reasonable IMO. I'd prefer it was 1% or so... 250-300 dow points, but. And so the convo shifts towards volatility or lack of. HTH
A small aha: Percentiles of volume and RDBMS volume bands being similar concepts, going from aggregation (percentiles), to granularity (volume bands) based on the bar-bar OOE's. Not sure which came first historically, though we know computers came later in the game.
Weekends have a purpose. A small drill. This chart is a WEEKLY ES. It was posted by someone in a non-related thread. The chart does not show volume. In the highlighted area (by me), there are AT LEAST 2 price bars where "start anywhere" has certainty, although you can indeed "start anywhere" you choose. Make RDBMS annotations on the price pane. Afterwards, pull up your own layout of a Weekly ES with volume, annotate, and then, debrief the results. How different is your MADA with/without volume? Were you able to give a reasoned answer to the VTP? How about EE's? On screen, is anything missing that is NECESSARY for you to do the drill? Are candlesticks "difficult" to use for you? What is the VTP annotation of the rightmost price bar? What are the possible annotations for next WEEK? Will you or can you know, before the end of the shortened trading week? How? The CW crowd is... so ET! Good trading to all!