It doesn't sound like a good idea. Not any colinear points form a trend. Not any parallels drawn through 3 points form a channel. You have to define a channel that contains and projects the price action. Jack advises against being too creative when learning, especially in the beginning. It may hinder your learning.
An RTL fan-out happens on low volume. Don't forget: pt1 to pt2 on volume increase, pt2 to pt3 on volume decrease. An increase in volume at RTL is probably a pt2 of a reversal.
Should I exit/reverse when SS indicates change in my trading resolution? or do I wait for the bar close? I thought we just need to focus and act on the moment of spike! clearly I'm missing the bigger picture here. Thank you.
You immediately take action upon receiving a signal from Str-Squ as long as that signal remains part of a sufficient data set, and not, a single data element. Remember, once one chooses to go intra-bar, one must continue to monitor intra-bar to insure one sees all the dominos fall which need to fall. I wrote my post from the standpoint of someone looking to 'see' what they may have missed, and as such, I provided places for people caught in that loop to go and focus as possible sources of error. If you do not make such errors, then by all means, continue to focus on what works. Again, the dominos all need to fall at whatever resolution one trades, or whatever level of tool one uses. The above clarification assumes one uses the 'finer' tools to "carve the turns" while trading, and does not uses the 'finer tools' in an attempt to become profitable. Good Trading to you. - Spydertrader
Is this an annotation error, or I misread it? <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1682479>
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1682500> Good. It isn't a Point Two. For some reason, I inadvertantly dropped a #2 in the incorrect spot - during a copy and paste. Follow the Green arrow to the location where the Point Two should have been labelled (where the left trend line [green] begins). Where I begin my left trend line is always a Point Two (in case for whatever reason) I don't copy and paste correctly again - in the future. See attached. - Spydertrader
This chicken scratch is a piece of art. Just do a review and count the profit possibilities... its worth more than a Picaso.
This is an old chart, corrected by Jack, showing that the RTL of a valid channel, if extended backwards happens to pass through a previous price swing point (originally annotated as pt1), but it hasn't started there. Consequently its original pt2 was incorrect too. This may have not made a big difference for this chart, but learning to draw channels correctly is very important. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=551357>