spyder, my chart is identical to yours except this point 1, wonder why did you choose the next bar? to make the channel less steep?
Either way works out just fine for both of us. I often choose the next bar following a 'spike' bar in an effort to 'smooth' out the channel. In reality, one need look no further than the YM to see we needed to reverse (from a finer resolution perspective) at, or near, the top of your Point One bar (See Attached YM Snippet). I just 'see' the trend developing differently in my mind's eye, and therefore, expect the 'channel' to level out after a spike. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1355197>
a OT question, on charting 101 avi file, there seem to be another way of numbering the channel, when do you use the old style vs the new style
I know what I saw. That is why some our charts for today are a bit more detailed then DKM's. I saw an FTT on the YM that was on the following bar of the ES. In other words, I was watching as YM hit the LTL and then promptly started retracing. The ES followed suit. At the open of the following 5M bar, we were mid retrace and it continued. Then it hit the RTL and began to traverse to the LTL. Mid YM traverse, it failed and you had your FTT within the ES 5M. Either way it is an ever so slight technical difference. Differences in the angle of the channel are not important. Knowing that you had a critical pt(s) for the new channel was. As long as you nail the critical pts, you've got your eye on the ball. The strike zone is relatively large. Thus whether it is dead center or the inside corner, you note the strike and take a swing. Regards, MAK
YM... Didn't see the larger timeframe magenta until the FBO of the lunch pennant (ie. 30M/45M fractal). Caution, this a nickel and dime type of P annotation.
ES... The blue box was a bank vault. Bare with me as I transition back to the forest view... <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1355282>