Awesome gooch! I was in the same trade, only 3 SECONDS later than your entry! Fortunately I was able to hold for 20 more minutes. <img src=http://elitetrader.com/vb/attachment.php?s=&postid=1670797>
mmm... sort of, it's still not clear though. In the strictest sense, once a two-bar tape is formed, if ANY price violates the tape RTL as it is extended, the tape is broken. In this case, we have a firm pt. 1. Point 2 is tentative, but once another tape, same direction as the first, is made, our point 3 is confirmed and a channel is drawn. According to this thinking, (for an up-tape) higher highs and higher lows is irrelevant. Only the tape RTL violation tells us that a potential point 2 is on the table. This is still not consistent with many tapes I see, where a gap exists between the low of a bar and the tape RTL from where the RTL was "rotated out". The posted illustration gives a good example. Thanks, RoughTrader
have you read the CFBW? 2nd post, 8th link. http://www.elitetrader.com/vb/showt...erpage=6&highlight=tree channels&pagenumber=1
Try to think of the market as a fluid motion... The market does not know we use 5 min bars to represent its action. The market just oscillates... up, then down, and up again. Sometimes the market oscillates faster, other times slower. Most of the times the 5 min bars can capture the oscillation motion.
Spyder, How would you rank each of the above four tools from 1 - 10 (10 being very important) for your trading? Also, you didn't include str/squ. Do you not find it useful at this time?