From icarus618 a year and half ago, I love the name (FP3), remembered this while 'waiting' for a pt 3 down that didn't come.... ....i have a pet name for my favorite wtf sequence: failure to pt 3... ...But let's look closer at the FP3. A failure to pt 3 is a BO. It is a BO from a DU where a person may have had expectations for a new trend but instead got a continuation of the current trend. So in that sense, an FP3 is just a misreading of the current trend and in and of itself does not exist... Original posts: http://www.elitetrader.com/vb/showthread.php?s=&postid=938916#post938916 http://www.elitetrader.com/vb/showthread.php?s=&postid=939133#post939133
Hi Bi9foot, In your chart you annotated the very quick FTT that was formed. It helps me to think of this a a "failed point 3". Price is trying to make a point three down (tape is broken) but it fails and breaks back. In fact a failed point 3 is a breakout. regards, Ivo
Today's ES this afternoon at 2:14 PM EST before the FOMC announcement. The blue lines are where I set my bracket order.
IMO it's not a generalisation or a rule of thumb but one of the essentials of FTT's. We always need decreasing volume as a sign of change (followed by decreasing non dom volume towards RTL). "Decreasing" means by definition lower at this moment in comparison with a moment before. This moment before can be the bar before but it can also be the previous high (assuming we are making new highs currently) or other volume around that same price earlier in the day. Best is of course when things happen at the same time. (prev bar + prev high). regards, Ivo
Hi Avi, I swear it was pure coincidence I posted about this failed point three right after your post I did read these old posts though some time ago. regards, Ivo