Personally, I see all INCREASING BARS as INCREASING BARS. I refine the matter by noting whether the bar has a SPIKE and/or TRAVERSED and/or RETRACED the channel. If it only did one or the other (ie. TRAVERSED/RETRACED) then my sweep is finished. If it both TRAVERSED and RETRACED the channel, then I PERSONALLY consider the bar to contain a black bar within it. I should preface all this to say that imo, these are relatively minor details especially if you do not already have your bread and butter churning... MAK
Pt3, pt1, RTL... Any point that begins a traverse. By rank, pt3 would be the safest. Unfortunately, I cheat so I typically put in my pt3 well in advance of it happening. When I get pt1, I immediately draw my RTL and LTL before I get pt2. This is typically because I have an expectation for the cycling that is usually 2 to 3 bar per traverse and 1 or 2 for the retrace with an expectation for the bars volatility given the type of volume we are seeing. It's kind of spooky. In other words, even the angles and width of the channels have typical values, for me that is. As a result, I put them in place to furthur clarify the right side. If I get a flaw like an FBO, then I do away with the new channel and flib back to the previous one. If the action rides the RTL, I will either adust my RTL or switch into a LATERAL CHANNEL or PENNANT modus. The characteristics of which are also very different... Regards, MAK
When you are wrong, what tells you that your anticipated pt 3 is not your pt. 3? I know that "when you are on the wrong side of the market, get out.", but is there a way to see that your anticipated pt. 3 is not what you thought it was soon enough to avoid a loss?
The point is to see the next sequence. If my pt3 is not where I am looking to see it, then I adjust for where it shows up. If we look at the sequence, it goes FTT/Pt1->RETRACE/TRAVERSE->BO->Pt2->RETRACE->Pt3->TRAVERSE->LTL/FTT/Pt1->.... If I don't get a pt3 then I am either still in a RETRACE from pt1, or before my pt2 I had an FBO... So I know long before it happens as to weather or not I will get to my annotated pt3. Why? because I know what the full coarse level sequences that gets me to a pt3. It is just a matter of monotnous repitition. As for "avoiding a loss", if I am annotating what hasn't happened yet, I am doing it to spell out the sequence I am looking for ahead of time. If I get a FLAW, it dictates that there is a CHANGE in the sequence. So to circle back to your Q, I know my pt3 is FLAWED when a FLAW pops into my sequence (ie. FBO or continually DECREASING V - lateral/pennant) MAK
Hi Mak, I tend to be careful with high volume spikes and carefully monitor YM while the spike is being formed for clues. YM may show an FTT while the spike is being formed on ES or a flaw in the new dominant direction meaning change has already happened. regards, Ivo
Sorry guys, I just bought a seat on the CBOT and tripped over some wires trying to get to it. So in the meantime I just noticed a print on T&S at 14:53:54 for 1,101 contracts. Is this Jack using binary signals to other traders? Saw this the other day: There are 10 kinds of people in the world, those who understand binary and those who don't. -Mike P.S. How ironic, check out my number of posts.
I annotate differently so I superimposed mine onto yours. Notice how we get the same answers.... VERY NICE! As long as you are on the right side it's all good... The BOs here cleared without FAILING (ie. FBO). <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1611709> MAK