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Spyder or anyone who has SCT experience... I have two questions that I haven't been able to find a definative answer for. First, does the color of the bar of the FTT matter at all? And secondly, does a gaussian formation in the same direction as the trend have any signifigance? I was watching a stock that was in a down trend this morning when a very nice R2R formed. Is that simply a sign of continuation? Thanks, TNG
The color of a FTT bar doesn't matter - on a finer resolution the FTT bar could be made up of mostly one color or another and then change just before it closes. A R2R is what happens when a long channel or tape CHANGES into a short channel or tape. You might have seen a R2R on a finer resolution than the 'Coarser' down channel or a non dominant retrace on decreasing red volume that went back to the dominant traverse on increasing red volume. Please see the attachment in the 4th post down: http://elitetrader.com/vb/showthread.php?s=&threadid=83604&perpage=6&pagenumber=1 If you let me know the stock - I'll be happy to look at it. -Mike
Thank you both for taking the time to answer. I can't remember what stock it was that I saw it in this morning, but here is another example. Is this gaussian "meaningless" or do I not understand what an R2R is? Thanks, TNG
TNG - Here is my take on SIRF today. It really helps to draw the channels with points 1,2 and 3. The first pt1,2,3 channel lasted from 10:50am to the FTT at 2:55pm. You see the non dom traverse starting with the FTT at 1:00pm - just when everyone came back from lunch. This was on decreasing black volume. Then increasing red volume came in and gave us new lows. At 2pm we had a volatility expansion of the channel and then went right into a lateral traverse on lower volume. Red volume picked up again to give us the low at 2:55pm. We then had an important CHANGE. Signaled by the FTT and a non dom traverse on decreasing black volume - just as we expect and anticipate. Then the BO comes on INCreasing black volume - heading to a new pt 2 of the new up channel. I hope this helps. -Mike
Hey Mike, Thanks for taking the time to do that. FWIW I draw the channels for the stocks I'm trading, but that was one where I saw an R2R in the middle of a down channel and thought maybe there is some signifigance to it. Upon reviewing Spyder's last document along with your last post it seems that those R2R's are everywhere in a down channel, but they are simply regular down channel R2B's, this is just one I had overlapped from R2B into the next R. It really jumped out at me, which must mean I'm starting to pay more attention to the gaussians. Thanks, TNG
TNG - Try looking at the chart at 15 and 30 min also. This should help with the 'Coarse' level gaussians and channels. Some stocks don't have enough volume to use the 5 min chart. -Mike