Take a peak at the revision I posted on 31... Thru 38 is attached below... Also, increasing Volume is what breaks price out of previous formations and begins the establishment of new formations... MAK!
You know, guessing is not excellence - and I was guessing at the pennant. I think I'll just hush up and hit the posts/books/charts some more. As always, appreciative of the insight Mak! Anthony
See attached. Look at how things work. carry over yesterday (lime colors) During three first bars synch is going on. You are getting the day started. You see you have pt 1 of the W day or the M day. You notice the majot majot clue in the world is FTT as usual. You see the volume telling you these traverses in the W or M trends of the day. FTT is where you go for it. "Do I know to GO?" we love to have a market to trade....... But if it is not there because of anything: "Bush goes to FEMA to "watch"" or whatever.. Then you trade what you have on the scale of the day. Look at the set of things. You have channels and their respective traverses and you use the same rules on both levels. 81 bars and 20 to 40 actions per day. I did some annotating. Go thru it carefully and see "Do I know to GO?" stuff. Here is how it works. It works the way the rules say it works. When you have a point 1 it says you are going to get a point 2 and then a point 3. This is just crude stuff. We also have medium and fine to act as verniers. So I have bluntly reshaped this chart so you can immerse in it. Look at 6 easy FTT's. What about the righ tmost one that I pointed to? Here you see me making note of the "rocket"condition there under low kind of volume. There was no slipping out of the RTL while those poor bars were leading to a FTT. Finally for me I have a "KNOW TO GO!!" and I draw it as ftt BUT I do not know any angle stuff as yet. I drew DU on volume do I also know I am ,at best, slaloming in a CCC. What will happen is that the CCC is very nondescript because of the narrow low low volatility price range. I will wash and sideline. To examine this chart do the following. Print a trading log like the IF 1 IF 2 log and simply stare trading the day on the log using the best prices you see there and write them in. Then do it again twice more by using other prices and signals you think you are seeing. Compare and contrast. You will find out what "DO I know to GO?" means. It does mean that you could have taken the best path with the prices. You will see that you knew before the ends of the bars, even. you knew because during the bar the fine vernier could have been working for you. Now during the drills above it is only important to do the drill. by doing the drills you get to think about the lines. Seeing the lines doing the drill leads you to "how do I draw the lines?" The answer is a rule that is easy to remember and use. The rule is: Draw lines as soon as possible. That is how you find out what kind of day you are going to be trading. By the way, every day is the greatest that you have ever seen for trading. It happens to be the day that you grew a little more effective and efficient. The punch line and why I wrote all of this: skip the pennants.
On the chart I didn't rearrange the price and volume charts. Please move the volume up so it is just under the price. Fill the price chart with bars as well. I do like the blank space on the right. What I am trying to covey to you at this point is that you did a great job getting the blue channel in place. As you are forming it you are making money because you are forming the blue channel with it's respective traverses. there are traverses that go with the blue trend channel you are forming and there are traverses that are "retraces" in the blue trend. On any day our job is to make money and not particularly to come up with a commentary on the porr nature of the markets. The dream team does this quite well. By doing the log drill you see that you made money on travese 1 and its retrace. Three or four actions depending if your reversed. Coming out of point 3, you are in thegroove and on a roll to the other side of the blue trend. THE PRICE COMES TO THE BLUE LTL. This is a payoff to you for your annotations in blue and all the traverses you drew in the blue channel. Today we spent a lot of time in the blue channel and it is just fine. It looks like the traverses just pooped out on lower and lower volume up to the end of the chart. The day's larger picture is clued to the slope of the blue channel and the volatility of the blue channel. This sluggishness all around is something to recognize and then to use the knowlege to go into the groove of trading all the traverses instead of just trading the money velocity of the blue trendline. Obviously the CC was so poor (meaning not easily seen as having three parts, etc....) at the time the pennant was drawn. I know the pennant was a substitute for the CCC.... drawing it was not a bad idea under the circumstances. But annotating the cyclic stuff with parallel lines is the top priority. I may post an OT on the water stuff....
PLease DO... Always rewarding to read and process your knowledge, experience, and talk thru. My auditory is in my head since I am by meself. Reading posts is an external auditory that is reinforcing. Perhaps this is largely because I recognize your voice and thus read/hear your posts in your voice. Strange, not so strange... Kind Regards, MAK!