AHA, ok. I understand. So if I am right a volatility expansion is not the same as price touching the left trendline. Is that right? In that case why isn't the 9:55 bar an FTT? After all there is a volatility expansion of the blue LTL and after that price fails to touch it. Or is it that price doesn't really seem to try to touch it? regards, Ivo
The premise of your question is incorrect. We don't see the reversal until price breaks through the RTL of the Green Up Channel long after the point to which you refer. What we do have within our Red Down Channel is continuation (increasing red Volume) on a finer resolution level. As to waiting for the bar to close in order to determine continuation, we can and do see it develop in real time. As to the increasing red volume showing continuation in a down channel, we have a Point Three and we (on a PRV basis) see increasing red volume. What more does one need to know? - Spydertrader
Spyder, yes, I see it now. Thanks! I'll need more screen time to sharpen my sensitivity these formations.
Of course you are right about the reversal. So which red bar are you referring to when you are talking about increasing red volume on a finer resolution? Did you see it when the second red bar was developing somewhere halfway or in the first one? regards, Ivo
See the attached chart. Note the 'pink-ish' arrows. This specific bar begins by moving higher from its open. When price begins to move back down, we have our Point Three. As price crosses below the open, Volume turns from Black to Red. Increasing Red volume after a Point Three Down Channel signals continuation. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1370320> We see an early warning of Price Direction at the same time on the YM (See second chart). We also have increasing Red Volume on the YM. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1370321> - Spydertrader
Hi Bearbelly Mak's excellent Excel PRV tool does this. I've noticed that there are a lot of questions re. PRV. For me it was a pain to calculate PRV without the right tools - it was, shall we say, CPU intensive. I've been using Mak's PRV tool for a couple of months and it frees your mind to stay on the big picture. Invaluable. I don't think I could trade without it now. Others have the bouncing ball (TS) - if someone develops this for Quotetracker I'd be very grateful.
Spyder, I remember you saying that if there is no sentiment change overnight, then you often resume your position from the previous day. Of course, this is assuming that we are beyond "forest" level, so those of you who are not, ignore this... Anyway, at the end of yesterday at 16:00 there was an FTT, are you going to start the day off short, since you would be short right now if the day had not ended? Thanks
The following response does not apply to Coarse (Forest) Level Resolution: Assuming no overnight (or pre-market) sentiment change (economic report, geopolitical event) then yes, I plan to maintain a short bias into the open. As I type, the YM overnight trade sits at 12702 - exactly the same spot at which it 'closed' earlier today. Should the YM find itself at or near that same spot at 9:29:59 Eastern Time tomorrow morning, I'd definitely enter short. However, much can (and often does) change overnight. - Spydertrader