Hi, IMO you were drawing two tapes that can be combined into one channel. The tape in the circled area plus the one before that. regards, Ivo
I am seeing numerous examples as described above but cannot see the differences to which you refer. I would be most grateful for an explanation. The link below shows the original clip where the jokari window appeared to work (i.e. change) and the attached clip is an example of where is appears to fail (i.e. continuation). Both examples are on the dominant traverse with a slight decrease in volume. http://www.elitetrader.com/vb/attachment.php?postid=1702847
as a rule of thumb, when there is one pt. 3 channel followed by another in the reverse sloping direction, I don't draw higher-level trendlines. To do so would take me out of my intended resolution of trade. In the above case, the print gives a nice visual cue for a upward-sloping triangle (using both of my pt. 3 channels), and it's tempting to draw it in. However, that's a distraction from the resolution I'm working on. If you saw the down-channel as just a tape, then the story is different. That same higher-resolution channel would simply become an updated pt. 3 channel on the original resolution, but demonstrating a pace decrease. RT
I'll point you in the correct direction. In one if the clips, at no time during the forming bar does Price resemble a Pennant Formation. In the other clip, Bar Overlap creates the condition where Price sits b]within[/b] the previous bar, for a period of time before continuing. Now, what differences would this create between the two bars as they formed in real time? How would sentiment appear? - Spydertrader
Referring to dkm's post, by different context do you mean expecting the declining volume and current direction (retrace) to continue until +PRV or were you getting at something else? Regards - EZ
Following along this discussion, I have a little exercise for you guys. Looking at the attachment, how would you annotate the price and volume snippet? RT
Well, I gave every possible thought towards ' M ' / ' W ' or neither days. Posted just about everything I could think of. Also, there has been some very good feedback on this, and a few clues from Spydertrader to help. So if it is ok with Spyder, I would very much appreciate the answer to this. I will say this, I am glad that I was not handed the answer, for it forced some thought for myself that resulted in seeing some things in a new light. This approach was done many times throughout the year on different topics, and it was one that created an individual and group effort that resulted in a truly solid understanding the method being offered. I thank you Spyder for your patience and feedback over the months on this topic and ALL that you have done here. I really did have a lot of fun with this puzzle, while working very hard with everyone to contribute to an amazing journal of knowledge that will be shared with future readers. So without further ado Spyder, the answer please . . .