Perhaps you can help me understand this: "The path to determing what something is or is not resides in the Volume Pane." Spydertrader This was said regarding the definition of a movement as a Tape vs a traverse.
If you look at the price cases, you see a set that all price movement can be distilled into - the current bar and the bar before. Out of the ten price cases, two make money, one makes money in two directions, four don't make money, two are frequent signals of change. By connecting the highs and lows of two bar combinations via parallel lines, one starts to build a tape. This oscillating action of the tape can be bound by a larger set of parallel lines. This is known as a traverse. A traverse itself interlocks with a traverse in the opposite direction. Two traverses give the pt1, pt2 and pt3 to build a channel. Channels themselves can be traverses of even larger channels. Attempt to draw the tapes and traverses on your chart and repost. Also, show bar numbers or timestamp to make it easier to discuss a specific bar. You might want to consider going to the 5min. It'll be easier to see the 1min's price action traveling within the guardrails set by the bounds of the 5min bar. This is also true of the bounds of the 30min set the trendlines that the 5min flows into. It flows, until it doesn't. One can know a thing by knowing what it is not. The larger timescales always bound the price action of the faster timeframes until they don't. Every long term trend started as a two-bar combination.
With volume the first thing to differentiate is what is considered Dominant and non-Dominant. Both exist at the same time but only one is in the forefront of perception. To make money, price has to change. When price does change, it either happened on more or less volume. Price change on increasing volume is a characteristic of Dominance. Price change on decreasing volume is a characteristic of non-Dominance. A trend is defined as a Dominant move, non-Dominant move and a return to Dominance. This oscillation repeats until it doesn't. When it doesn't, that is a signal for change. The signal that can be discerned on all tapes, traverses, channels, etc is the FTT - the failure to traverse. The FTT is also the point 1 of the new opposite tape/traverse/channel coming into view. It exists not necessarily coupled on all timescales but more accurately the role it holds in the market's system of operation order of events (OOE). The market is symmetrical, everything that applies to longs applies to shorts.
Suspending the up and down bar color is useful. In looking at the form of the bars, one can discern when the form is in coherence with the bar color or not. Sometimes, this simple distinction is the signal for change. OB's are good to notice, having the bar's open and close will differentiate the OB's for some are not like the others. The lateral is good to notice. When price enters a lateral is behaves differently then when being marked up or marked down. It's a good zone to slalom as an advanced expert but is known to chop up those unawares. If you take the time to draw the price cases out for yourself and post, it will support the effort in committing them to long-term memory and begins to build capacity.
Thank you, this method has provided great clarity in the bar to bar observation, something I lacked. Here is a new attempt to comment a chart, the timestamp is included, I got lost regarding 1,2,3 when the trend accelerated after 10:05. The other thing I am having great issues with is the volume pattern, not sure what is it I am looking for. I am providing a colored chart, perhaps it will be easy to spot it here?
If you want to take this journey, find the tools that are applicable to your software package. The coding is more sophisticated to an up bar being black and down bar red. Reach out to stepan7 he has the ninjatrader toolkit.
Hi Sprout, I have been away on vacation, but thanks for your comments, while I get back I would like to have time to read the theory behind all of this, can you help me with a link to where I can find it?