No, I understand you need to do the reverse over and over until it clears the entry. I recall in a trading journal, Jack once did 3 reversals in 30 sec period. and people laughed at him said it's brokers' dream comes true, and they were probably right, if APA falls in the hand of wrong people, like me. as an experiment, I'll write simple trading system mimics APA and I'll post the result here or "software" journal if spyder think the topic is unfit.
I am currently using ES and PRV to determine PT3's for entry and then using a break of the RTL for exits. The problem arises for me when the RTL of a channel is broken, calling for an exit, but then a few bars later forming another PT3 of a "fanned out" channel. Happened twice today. Looking at Spyders chart the first time was around 10am when the first BLUE RTL was broken and was quickly followed by a PT3 of the fanned out GREEN channel. Second time was around 2:30 pm when the GREEN RTL was broken and followed by the new BLUE PT3 a few bars later. In both cases the DOM volume was not substantial in the area of these new PT3's (at least that was my interpretation). When the RTL breaks I find myself looking for the PT2 and PT3 of a NEW DOWN CHANNEL rather than thinking it may be a fanned out UP CHANNEL PT3. Hope this makes sense.... Any comments or suggestions???
Understand the differences which take place when Price breaks the RTL, and how those differences effect both the trend and the channel. (In other words, did Price break the RTL on increasing or on decreasing volume?) Good Trading to you. - Spydertrader
I think I need some clarification, please, Spyder. When price breaks the RTL on decreasing volume it tells us that the channel is not properly set so we need to "fan out" (correct me please if I am wrong). This morning the BLUE RTL break out I see you annotated a "R2R" here. Because of the higher RED volume at 10:05 I thought this was a BO on increased volume. In the second example, around 2:20pm, I noticed the RTL break on decreasing RED volume. Then when the 2:35pm bar went "B2B" I found it hard to identify as the new DOWN PT3 (your RED channel) as pullbacks to the RTL are supposed to happen on decreased NON dominant volume. The same bar did close well off its high so I possibly could have viewed the volume later in the bar as red??? Thank you very much for your willingness to help.
You may wish to review the chart I posted earlier. Price broke the RTL of the Blue channel on the next bar (10:10 AM) - which showed decreasing black Volume. Spike bars often contain significant amounts of both dominant and non-dominant Volume. By mentally 'splitting' the bar in half, you can then 'see' the decreasing Non-Dominant Volume change to increasing Dominant Volume as the Intra-Bar Gaussian shift occurs. Check the YM during this period to catch a better view (or look at the ES one minute) and to 'see' the changes as they take place within the ES 5 minute bar. - Spydertrader
Lest I generate confusion, what I referred to as the "BCFBW" (Building Channels for Building Wealth) document, is in fact the "CFBW" (Channels for Building Wealth) document. Yes, Virginia, there is only one. BTW, I had read the MAK bar by bar commentary before but it's one of those things, not unlike "Reminiscences of a Stock Operator", that you see more with each re-read. lj
HI, I know. It's just ridiculous. We just have to let it go especially when price is breaking new grounds on +PRV. regards, Ivo