Due to the insertion of Harmonics into this month's discussion, and the fact that making sure everyone understands the various games played on the DOM remains an important facet of 'carving the turns', we will continue these two areas of focus into July. As a result, I plan to push back the Tic Chart Discussions until August 1 of this year. In this context, you have continuation to the high side as the flaws formed after Price retraces from the left trend line. In other words, we have flaws showing up in a non-dominant traverse. Perhaps, the market is trying to tell you something here. - Spydertrader
I REALLY had problems in this area also, still don't understand it (has been happening to me a lot lately, see my last post). Here is my chart and what I THOUGHT I saw. It's weird because I had been cruising along thinking I understood everything and then all of a sudden 2 times this week I'm at a loss to be able to explain. I posted a chart earlier with something similiar and no-one gave much feedback, so I'm really struggling here. Could use some help
Spy already commented on this, but yeah... note the huge black vol bar followed by the tiny red vol bar. Anticip continuation here, but UP, not down. The second I saw that big black vol bar, I saw this as a very likely candidate for a PT1 of an eventual new up channel. I think that qualifies as a spike/triangle wave bar. If you didn't see the black bar as DOMINANT, then the flaw certainly should clue you in, since flaws only happen in DOM traverses.
I never had a real channel (just a tape) when i used the 10:00 bar as my pt 1. Also the slope of my line actually doesnt vol exp after the 10:45 bar, merely just touch my LTL (this is all still my tape). In order to actually get a real channel w/ 3 points, I used the 10:15 bar a pt 1, 10:20 as pt 2 and then pt 3 at 10:25. Doing this, allowed me to get an FTT at 10:45.
Personally, I moved PT3 to 1030 for reasons I'm not entirely sure I can explain... It just seemed to "fit" better. Not saying your channel is wrong or mine is right, but that seemed to be the point at which the trend escaped from the "chop" and the movement became more clearly up. With this channel, the action becomes much clearer. Flaw, then FTT. Which reminds me, if you have had no flaws then you should be expecting to get at least one before you get a legit FTT. <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1502340">
Is it me, or does it seem illogical that we havent talked about flaws in detail yet, considering how big a part they play in understanding what we are seeing in realtime? I mean, Spyders charts are full of them and it seems some of us sort of know about them, others are completely lost (me!) and then some think they know but not really. I mean, the easy ones are the low volume ones but I've seen plenty in review of Spyders charts where the vol isnt that low but its still a stall or dip (or whatever). Am I the only one feeling lost when it comes to flaws?
They are discussed in depth in the ET chat room. There have been some good logs posted that you should review.
Yea I let my tape turn into a channel, maybe that was my problem. Even afterwards I looked and looked to try and see how else I would have drawn the channel to catch that FTT and couldn't see it. I guess I need to be more conscious of 'redrawing' than letting tapes continue... however I'm sure I remember Spyder or someone saying they often let their tapes turn into channels.