No. I never considered the the Price movement to have created a Point Three Channel until after the Pennant had formed. I viewed the whole thing as one long tape. Although tapes can turn into a channel (we occasionally see tapes 'rocket' off for numerous bars in one direction creating a very wide 'tape' which we then consider wide enough for a channel), I couldn't create a channel out of three bars, and as such, I looked at the environment as only a 'tape.' As a didn't feel the 'tape' had 'widened out' enough to exceed 'threshold' for me to consider it a full channel, I knew "what must come next" had to show movement from Point Two to Point Three - either by a retrace or a Left to Right Traverse forming in order to create a Point Three down channel. After looking at gooch87's chart, I do see Price make an attempt to head higher (by a tic or so it appears), but mentally, this action, in this specific example, wasn't enough for my mental pathways to think, "channel here." Having said all that, I do see how someone could have viewed the entire event as having already formed a Point Three Down Channel. Doing so certainly shouldn't be viewed as incorrect or wrong by any stretch of the imagination. Once again, we see how two different paths lead to the same place. The bottom line with all of this is - whether by trading the tape, or by trading your view of a Point Three Channel, both views have one short. Good Trading to you. - Spydertrader
I like the lateral formation. I did not even think of adding those lines. I am looking forward to see how this all works out.
Just a follow up on what the ES daily has done overnight. This is the sym. pennant b/o. Let's see if the current direction holds for a good part of the day, or takes a turn. Looks as if previous sym. pennant b/o's on the daily have set a trend for the majority of the day. edit: I will annotate this evening.
Good AM all, Have been going thru some of the older stuff [? for Grob/Hershey in particular] and there is some truly nifty STR/SQU material from MAK. The attachment is his XL "script" for DTNIQFeed as the data feed. Just plugin the current contract and you're off, at least in the sense of having it give you some data. There is a swath of explanatory material which must be read and understood before using the script, IMO. Question: This AM the 11:00-02 and 11:02-04 YM bars were "going to the moon" [big V, big range] at an appropriate spot [RTL] but the STR/SQU was either in SQU or NEU. This suggested to me that the runup was not smart$-inspired and lo! - the 11:02-04 bar did your basic AB odd harmonic thing and price proceeded to tank which it is still doing as I write. Not unexpectedly, this action led the ES by at least a minute or two. Is this use of the STR/SQU kosher [by which I mean if applied again under similar circumstances, it will give a similar result] or is it the dreaded coincidental phenomenon or worse - the fortuitous cancellation of errors hobgoblin? The second attachment is my "channels-only" partials to 11:30. lj
The last seven bars (note the time of this post) should have looked very familiar to you. - Spydertrader