Once one sees a volatility expansion, one can expect an FTT. The above does not mean, "AN FTT always follows a volatility expansion on the next bar. Volatility expansion may continue to occur for quite some time before one finally sees an FTT formation. However, one should prepare to see an FTT after a Volatility Expansion. Surprisingly, when one begins to know when and where to look for FTT's, they suddenly become much easier to find. Thanks for sharing your "Aha!" moment with the discussion. - Spydertrader
Although Im not a member of Jacks A-Team, I follow and practice his approach closely. What you observe here is true and often happens in the currency markets - Point 2 will often form double or triple tops (or bottoms) whose parallel will dictate point three. OBSERVE THE OBVIOUS. But remember - dont overcomplicate. My suggestion - use Jacks 1-2-3 rule as the standard. The 1-2-3 setup happens far more often then the former. So logically, we assume this as our starting point and make trades in ANTICIPATION of it. However, we dont make ANTICIPATION trades on a 1-2-2-3 setup. We merely are MINDFUL it can happen and watchful during those conditions under which its likely to occur. If it does happen, trade it. My 2 cents - WATCH and WAIT for the 1-2-2-3 set up. Dont anticipate it.
Caine, you got this far in the thread without knowing what PRV is? Hehe... it's just calculating what volume will be by the end of the bar. So if one bar is 100, and you are halfway through the next bar and it's already at 75, you can anticipate that it will close at a higher volume than 100.
Oh, hehe, I did know what is was. Yes I use it already I was thinking back to what was discussed when Nkhoi brought up a "B2B" on the daily and you mentioned that it may be a black bar but its a split bar based on the way the bar formed. I guess I confused PRV with "purity" of the bar
This place has been dead lately! Maybe this will get some discussion going-- a zip file of some of today's FTTs screencapped when I caught them. Comments/questions/criticism?
For me, I became better at anticipating / identifying FTTs when I set aside the entry-exit mindset and instead just focussed on the process. It wasn't easy, getting rid of the thought process that went "OK, is this an FTT @ 1450.50, if so an entry at this point looks good for 3+ points, but then where should I set my stop, what is the profit target, is price stalling now, should one exit now or hold on ..." But once I started to equate excellence for Feb2007 = simply observing/anticipating the gyrations of the ES using channels + volume WITHOUT any entry-exit pressure, then the whole activity suddenly became easier and more fluid. My ability to see and understand the PV relationship became better. Just my experience, if this is not the right track then Spyder/MAK please feel free to correct.