Sorry I don't get this. (higher relative volume on its fractal) and I am curious what you mean. When I talk about FTT's taking place on lower volume then I mean the fractal in which you consider the FTT an FTT. I am talking about the fractal we follow at that moment. What i mean is on whatever fractal we are currently monitoring decreasing volume as price is moving in it's dominant direction is a sign of change. regards, Ivo
Not only is this true (Dkm post) but sometimes you even have to split the volume intrabar where the potential pt 3 is. Like the first 2 mins you saw price heading lower on decreasing red volume and then the last 3 mins you saw price increase on inc black vol. Now, the overall bar may not have very great vol as compared to the previous 5 min bar, however the turn of events intrabar says a lot. IOW, we do have increase blk vol at the point 3 in this case, it just happens intrabar.
What you see is a superposition of the effect of several fractals' volumes. Try to filter from what you see pictures like the one before, with different volume magnitudes for different fractals. Slower fractals have bigger volume. Dominant traverses have increasing volume, while retraces have decreasing volume. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1611123>
When looking at a certain volume sequence (R2R, B2B), if there is an opposite color volume bar, how do we see through the bar as increasing or decreasing? For example, if I see decreasing black volume in a B2B with 2 red bars mixed into the decreasing B2B sequence, does this mean anything significant? Are they just flaws in the volume, just as we see flaws in price?
I see it this way too... The clincher there is the "SPIKE" of that bar. If we think about this, and I do alot of this, there is a sequence. Jack goes on ad naseum about sequences, oh dear, my head hurts. HOWEVER, accepting that there are sequences keeps only the essential elements to focus on at all times. For example, if you are near a RTL, you have the BO/FBO characteristics dominating your sweep. This way, a FLAW is something that is contrary to the dominant mode (BO or FBO). If the TRAVERSE is under way, I am specifically sweeping for 2 flaws, the FTT and for INCREASING V AGAINST THE TRAVERSE. Why these 2 FLAWS, because they are the money closers saying that the money making period has ended for the current direction and begun in a new direction. This is part of what I mean by BO being very different than FBO. FOR ME, a BO is CONTINUATION having caught the FTT. If I didn't, it is a CHANGE signal as is an FBO. In your picture, I see the "SPIKE" which is after a 2 pair and after running into the wall. I see the intrabar black because I also see the "SPIKE". But that's just me. Again, even if I am upside down, I use my RTL BEFORE THE FACT, not AFTER the fact as some folks seam to have. What I mean is the point of having the right side of the screen blank is so that you extend your trendlines BEFORE the new bar is in place. This is what gives context to whats happening now. SOmeone, a day or two or go posted 2 charts where the annotations were more than 45 MINS behind the current action.... MAK
XO = CROSSOVER CLEARING = No part of the BAR touches the RTL (this is an anti-whipsaw preventive measure for moi) PERSONALLY, were I a beginner, I would only trade TRAVERSES (dominant). However, if I were BM, I would only trade SINGLE extreme VOLUME 5M bars. How do I know the current bar is EXTREME, because my PRV (noiseless works slightly better) is redlined EXTREME. Why EXTREME bars? Because there is nothing to think about. The volume in EXTREME bars is so heavy that it is easy to differentiate which side of the action is surging. STR, is STRECHED!, SQU is SQUEEZED. In other words, the signal to noise ratio of all indicators are EXTREME (ie. very loud and clear signals, nearly FLAWLESS). Unfortunately, it's not discussed anywhere as to the why's but all the pieces are here and the reasons why are understandable considering questions like, which are the most profitable bars, and what's the signal to noise like. It can be done with as few pieces as PRV, STR/SQU, and P... But then again, that's just me. Unfortunately, if one can't make sense of the hows and why, then it's all nonsense and one won't be able to accept that the dataset is sufficient... MAK
Attached is an example of the question I asked earlier this morning. If we do see through these as "flaws" in the volume, similar to price flaws, why is that? Thanks for any help you can offer.
Very nice FTT on YM, on traverse as well as the larger channel. I noticed while ES was going up YM has been hesitating for a while. regards, Ivo