Hey bundle, Not sure if this will help but here is a little gaussian critique from my perspective of a snippet you posted the other day. The gaussians you have drawn are fine, BUT they don't appear to be synched to the channels that I would actually trade but rather seem to be zoomed out even further. It looks to me like you are looking for PT3 trades on this chart on the SUPER forest level, which for me would be a frustrating, inexact experience. Note the channels I've drawn. If this would be my chart, those would be the only channels I'd even have, and the corresponding PT3s would be the only ones I'd consider trading.
Spyder, How does this tie in with the requirement for volume to keep reducing as price continues its way to the RTL after an FTT?
another one of bundle's... You HAVE to have increasing black as the channel breaks out. HAVE to. And it is clearly there, you just seem to have gotten thrown off by the decreasing black part, which in this case just signifies a lateral movement in the up channel.
How many of you are keeping a log while monitoring the market? Here's Jack's instruction from January. (man, did time fly.) http://www.elitetrader.com/vb/showthread.php?s=&threadid=83604&perpage=6&pagenumber=38
IMHO, If you are not making steady points on the coarse level then somethings wrong at that level that must be fixed first. Then, you will be continually monitoring and trying to improve but you will have the confidence that there is no hurry. Even if you choose to not monitor p&l you cannot be oblivious to how you are doing at the coarse level.
For the sake of your example above, let's assume a trader catches the FTT at the exact point of change (be it exact tic, exact volume 'at some point' or at close of bar - doesn't matter). Now, what must come next? Just as you outlined, decreasing Volume must take Price back to the RTL. As long as this continues to occur, do you want to take a trade? Of course you don't, you are holding through awaiting the break out. 1. Do I want to take a trade? 2. Can I take a trade? If one receives a hold signal (based on one's resolution level) from the market, one would not, could not, should not want to take a trade. The 'at some point' test does not apply unless and until one arrives at the question, 'Can I take a Trade?" At the Forest / Tree level, we don't trade the Non-dominant Traverses (exception being after an FTT). Trading Non-Doms occurs at the Limb Level. Hold Signals (for this resolution level outlined above) Decreasing Non-Dominant Volume back to the RTL. Increasing Dominant Volume moving away from the RTL. Decreasing Dominant Volume with Lateral Price Movement. Decreasing Non-Dominant Volume as price moves from points 2 to 3. Flaws Formation Development Now, one might receive a change signal after any of the above, but certainly one would not, could not, should not want to take a trade should one already entered correctly after an FTT, and then, received any of the above data sets. Once entered correctly on an FTT, one cannot start to look for another FTT (on the same resolution level) until after forming a Point Three Channel. Otherwise, the trader has jumped fractals, and is monitoring on multiple resolution levels (falling down the rabbit hole). Know thy resolution level and deviate not from it. - Spydertrader
FWIW, after having consistent success at the forest level, I am now trying to refine my abilities to the tree level. This has caused some difficulties. Although I do not strictly follow my P&L I do have a loose idea where I stand which is how I quantified the loss of 7 pts in my earlier post.
Excellent. Sorry for intruding. I got the impression from your post that you were frustrated overall.
Interesting at the close !! But a typical day otherwise - the 11:30ish to 1400ish areas are a time that I wouldn't touch with a ten foot pole....