Zzajin, someone posted a tutorial on tapes, trees and forest a while back.... do you know where it is? Thanks
I'm afraid I don't. I'm also not sure I have ever seen it. I haven't made it through all of this thread tho.
Just as a review, lets take a look at how the Gaussians always follow their channels. In the attached chart snippet, our Forest (Blue channel) shows decreasing red volume from the high at 11:35 through 12:05 low. Across the entire area (11:35 - 12:05), we see decreasing red volume. At the same time, we see decreasing red (as price retraces) to increasing red (as price breaks out) from the Green Up Channel (Tree - Yellow Highlight). Note the two red arrows at 11:40 and 11:45 Volume Bars. As we would expect in a down channel, we see decreasing black volume when price retraces (Green highlight) from 11:50 to 12:00 bars. The first third of the 12:05 bar continues to show decreasing black until price changes course and creates a point three down channel. We see increasing red with this bar - exactly as expected in a Point Three (another Tree - Red). At the end of the 12:05 bar, we note Price forming an FTT, and as Price retraces to the right side trend line, we again see decreasing black volume (exactly as anticipated). At 12:10, we have increasing black volume as Price breaks through the right side (red) trend line continuing to increase in both price and Volume to the 12:20 bar. At the same time, we show increasing black volume across the entire Blue Forest from 11:30 to 12:20 (Pinkish colored Volume Arrow). When monitoring Gaussians and Channels, one must always make sure one monitors on the correct resolution level. After all, the attached chart shows how easy it is for the market to draw a trader in to ever finer levels of resolution without even realizing it. I hope everyone finds the above information useful. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1412080>
Hello Spyder, Thank you, very useful as I had problems recognizing this. Exactly when did you consider the 12:05 bar to be an FTT? For me this was not obvious until two bars later because I think it could very well be that the 12:10 bar would continue the traverse. In general point 3 and FTT on the same bar is a little tricky IMO. regards, Ivo