Concerning Gaussians, I dont seem to understand the bar intervals necessary to form a Gaussian. On Spy's ES chart from friday, sometimes a Gaussian is form within 3 bars and sometimes its a lot longer. Would really like to hear more about gaussians. anyone interested in sharing the knowledge?
A gaussian peak is just when it goes from increasing volume to decreasing volume. There is no real "rule" or "interval," it's just a visual thing that you see.
Maybe the attached document can provide you some clarity. Jack has discussed Gaussian Formations under his Jack Hershey username here and under his his Grob109 username here. In addition, this attachment, from the beginning of this thread, should assist your understanding. - Spydertrader
Although price did not reach the LTL on the bar you describe, what is the indication that the very next bar would not continue on towards the LTL with increasing red volume? How can it be labelled an FTT without SOME indication of what the prv is on the next bar? The fact that a bar with increasing volume does not reach the LTL does not automaticaly make it an FTT, surely?
So if you are wrong about it, what do you do? I know where I'd rather enter / reverse. Then I seek confirmation that I have one of the best prices available for the coming trend. The range of prices near the FTT are special - either they are the best prices or you can wash if you were wrong.
Good question. This is why your eyes should be glued to the screen and be thinking hard about PRV when you label that bar "FTT" as I have described. Sometimes, you will be wrong. In fact, if relying strictly on the ES/YM, I might go so far as to say that if you aren't wrong at least 20-25% of the time, you are waiting TOO LONG to identify the FTT. There will be mistakes made, but as Spyder has talked about over and over, if you make the mistake as early as possible, you will profit or break-even on it. It's the waiting that kills you. Also, keep in mind that tools added later are sure to make this FTT-identifying process a lot clearer.
So you enter/reverse on every bar with peaking volume that does not not reach the LTL? Interesting technique.