Here is my chart, my aim right now is to become an expert in drawing channels and tapes, the rest will follow. Thank you everyone for all the help behind the scenes. Have a good day!
Increasing prv on ES or YM against the desired direction and/or a break of the high of the bar that was thought to be an FTT. At this point I change the FTT notation to WTF.
This orange channel I really couldn't see with all imagination possible. What makes you decide to connect Friday's 16:10 bar with todays fifth bar instead of connecting today's second bar with the fifth bar which seems much more logical to me at that moment. However, that channel wouldn't show an FTT (but just break of RTL). Are there some rules for drawing these carryover channels? Also I find drawing the first channel (or "getting in the market") the hardest of the day. regards, Ivo
On my YM chart, I have good looking up channel "operating". On the YM, take a look at the time period between 11:00 and 11:20 (the WTF on dkm's chart). I see 2 B2R's followed by another B2R with volatility expansion. For there to be "change" in an uptrend, we would need to see increasing red volume that would at least BO the RTL of the up trend, right? Instead, I have decreasing red volume marked on my chart (on each of the gaussians). If increasing red occured in this time period (via R2R), it would be a clue in my mind to consider "change". Whether or not the change was a Forest level FTT or not is another story. But I would first want to see "change". Otherwise, I would anticipate another B2R. From a pure price channel point of view, I would expect to see a BO of the up channel to confirm the FTT for "change". The decreasing red volume was the key for me. "No change" Hope this helps, spooz
Forests contain Trees, and Trees have Limbs and Leaves. In the same fashion, we build our larger channels from 'legs' which traverse across the trend. Since the 'burnt red' carryover channel had a 'Point Three' on the previous day final bar, I chose to begin my next day channel from that very point. I began a 'taped' channel from that point as well using the final bar of the lateral as my Point Three for the orange channel. I too had this difficulty until I started to draw carryover channels in an effort to set the context for the next day. Once you get beyond this small hurdle the opening few bars will no longer present a problem for you. - Spydertrader
I recommend asking DKM at what point he decided the WTF was a WTF and not an FTT. If you are on the Forest Level, you don't care about WTF's as price has yet to leave the right side of the channel. If one is on the tree level, then in real time, these WTF's look no different than FTT's. Only in hindsight (or in the case of flaws, at the next bar [or two]), do WTF's differ from FTT's. Remember, FTT's mark a change in sentiment. They are not the only signal of change. Again, In real time, FTT's often differ little from David's WTF's. Determine which resolution level best suits your experience level and psychological make up. Stick to that level, and while monitoring there, 'peak over the hill' every so often to learn to 'see' what comes next. - Spydertrader
I noticed that alot of flaws and WTF's are inside bars in relation to the previous one as well. This is not a rule per se, but I am usually hesitant about ftt's that are inside bars