No this is not correct. You enter immediately after locating an FTT. Each of the three End Effects has a corresponding action. 1. FTT (reverse) 2. FBO (Exit [beginner level]) 3. BO (hold) I strongly encourage you to review the recommended links posted within the first three entrys of this thread. Specifically, the three links to the FTT discussions, as well as, the link back to the final pages of Journal Two. A review of this entire thread might serve to improve your understanding as well. Good journey to you. - Spydertrader
Using 5-min bars, how many channels would I expect to draw in a day? It seems that after the first two bars appear, I can draw a channel (speculative/potential channel). Then when the 3rd price bar appears, I may be able to draw another channel, using the 2nd and 3rd bars, maybe trending in the opposite direction to the 1st channel. Are there any channel drawing guidelines?
OK. I am on page 18 of the .pdf (Channels_for_BW_v2.2.pdf) and see that there is a channel drawn with the help of points 1, 2 and 3. How were those points found? Is point 2 always at the 2nd bar after point 1 and point 3 always at the 2nd bar after point 2? I don't think so. Is point 2 found when the next bar is a lower bar? Then is point 3 found when the next bar is a higher bar? Maybe, but suppose the market began at the 6th bar? Does the distance between the right and left lines have to be equal, i.e., do the right and left lines have to be parallel?
1. Select the period of consideration: the long term (months to years), the intermediate term (weeks to months), or the short term (days to weeks). 2. For an uptrend within the period of consideration, draw a line from the lowest low, up to the highest minor low point PRECEDING THE HIGHEST HIGH such that the line DOES NOT PASS THROUGH PRICES IN BETWEEN THE TWO LOW POINTS. Extend the line upward past the highest high point. 3. For a downtrend within the period of consideration, draw a line from the highest high point to the lowest minor high point PRECEDING THE LOWEST LOW such that the line DOES NOT PASS THROUGH PRICES IN BETWEEN THE TWO HIGH POINTS. Extend the line downward past the lowest high point. Suggestions for the first time: Print off some Yahoo or whatever charts for one of the big indexes â perhaps a 5 Day, 3 Month and 1 or more years. I suggest you use a line chart for convenience. In the Uptrend (2 above) you have your ruler BELOW the chart line â you are below the action. In the Downtrend (3 above) you have your ruler ABOVE the chart line â you are above the action. Simply reread the section above word for word and you will have it in no time. The above post is quoted from Trader5287 in The ET Chatroom. The above provides a method for locating points one and three. The following video might help you with the entire trend channel. http://www.lulu.tv/?p=3792 - Spydertrader
Thanks for filling in your profile. You can slip over to a real time session this week (at the end probably) in the north part of town.
Just a reminder ... Tuesday January 2, 2007 has been designated as a National Day of Mourning for former President Gerald Ford. As a result, U.S. stock markets will be closed. - Spydertrader
Jack, I did not take your comments as criticism I just can't draw the rays (yet) with my current software (ensign). It's a pleasure and an honor to be part of the group and I only hope I can return the kindness and generosity to others one day as well. Looks like Spydies got his hands full with these two journals and all these repetitive questions, the faster some of us can get up to speed the more help we can give him here.
Right, I hope I got at least some concept to this. ( It is my 1st day learning this). So, I was wondering if I have plotted the lines correctly? Unfortunatly futures/equities markets are not going to be open until the 3rd so, I used forex charts. Just to get the basic concept. Now I was wondering if I have plotted them at least close to waht it is supposed to be? Any help will be appreciated. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1311384>