How can you label a "BO" on that red down channel when price clearly exits on less buying volume (bars in question are 12:30/12:35). I see price leaving that channel but not on any surge of buying yet you label it a BO. I am confused
My guess is that price did leave the channel on dec vol so THAT particular sloped down channel isnt right HOWEVER there is still a much larger down channel in play?
Look at the YM gaussians. Also look at the ES gaussians in such a way that lets you "see inside" the 12:25 bar. <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1491476">
Not to worry. Price did leave the channel, breaking the RTL on increasing black volume. Note that the 12:25 bar is a spike bar. That is, it opens and closes at or about the same point. That means the bar is roughly 1/2 selling and 1/2 buying. In these cases, we (mentally) split the bar into two pieces and divvy up half the volume to each. When you do that, you'll see clearly increasing black volume on the b/o bar.
As others (including yourself) have noted, we see Price exit (and remain outside of) the red channel. If Price exits a channel determines whether or not we have a BO or an FBO. How (on increasing or decreasing Volume) Price exits a channel determines of we have a trend in the opposite direction, or if we have a need to 'fan' out our current channel and continue the current trend. - Spydertrader
Today's ES. For a refreshing change, this week, I'm only annotating and watching (no simming). I want to reset my mental framework.