For me that is the beginning of change. I would rather say: when price changes on decreasing volume. regards, Ivo
How can your last "channel" be legit? You lable pt 2 at 10:40 but you assume pt 3 on the bottom of that bar although that occurred first. You cant have pt 3 hitting before pt 2 is in place. So that channel you have doesnt seem to fit.
That doesnt make sense either nkhoi, because the price point (6550) for "Pt 2" you assume to be the top of the 10:30 bar was put in before the pt 1 at the bottom. The sequence isnt right. You need pt 1 to be shown first, then pt 2 and then pt 3, otherwise the channel is incorrect.
Callmate arrives at the same place - by using a slightly different route is all. <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1635042">
Spyder, can you explain your blue channel? You have pt 1 and 2 on the same bar although pt 2 happened first in the sequence. Dont you need pt 1 to show first and then pt 2??
you have to have 1 and 3 first in order to draw a trend line, after you draw a trend line you look for 2, make sense?
No, it doesnt make sense because you can know in advance where pt 2 is after its been put in and BEFORE you necessarily get a pt 3. Pt 2 has to be in before pt 3 is, thats why its "2" as opposed to "3". Otherwise you could just draw any old lines connecting things. Doesnt make it work though for the purposes of making money.