Could someone comment on the volume keys that I should use in these circumstances please. <IMG SRC=http://charts.dacharts.com/2007-01-01/Joab28.png> http://charts.dacharts.com/2007-01-01/Joab28.png
Joab, I'm not sure I'm addressing your Q but I'll give it a shot... First off, my channels are a bit different. See attached... <IMG SRC=http://www.elitetrader.com/vb/attachment.php?s=&postid=1311088> Take a look at the 'ftt' in the short traverse. After Spyder mentioning to look at the Vol after an FTT (a bunch of times ), an LED finally went off in my head. There was increasing Vol after the FTT! I think similar or decreasing Vol would have probably led to a flaw. So, If I understand the beginner rules correctly, the ftt to FBO would lead to an exit. Maybe someone else can comment on this... Also, I made an attempt to draw in the Gaussians. I'm still learning to draw these guys, especially in the 5 min fractal. [edit: I just noticed that my Gaussians from 12:00 to 12:30 are whacked. I think 12:00 to 12:15 is prolly an R, 12:15 to 12:30 a B. Sorry, I'm still learning... ] FWIW, spooz
spooz thanks for trying and i think u did help So in this case because volume expaned after the FTT I could have abandoned the Short and given the Long precendent?
This nuts and bolts discussion has me thinking I could actually learn to use these channels, which I've only casually looked at before. Thanks so much for the presentation. In reading much of the the background information presented, I came to the understanding that an FTT only occurred on a failure to traverse from the right to the left side of the channel. That's why the quote above confuses me. Perhaps it's just semantics, but since "The Journey begins with the FTT" (from post 1), I feel it is important to understand this point. So can an FTT also occur when traversing left to right?
I few pages back a person asked about a, b, and c on a chart. It was in regard to an FTT. Another person raised a question about bars 5, 6, and 7 and he had not annotated any of the chart in a signifcant way. He traded an index that was different than ES and did not post any of those charts. Answers to these people inolved just putting in a simple annotation and/or mentioning the formation present (that could have been annotated.) You are posting here a chart and asking about volume and you do not have any rays on your volume part of the chart. Why punish yourself by not annotating? It is 2007 and it is time to bear down a little and reflect the continuing support that is being offered. If you put in the rays and if you refer to the three illustrations of money velocity (on 6 levels) , etc associated with these volumes, then you are getting warmed up and in the ball park. Get price and volume down. This will lead you to some feelings about additional needs. It is super to not see this leading that or to not perceive other things. This is natural and normal. What happens if you do the beginning stuff first and thoroughly, then it is possible to build on a foundation and, moreso, at some point your WILL SEE things that cannot be seen now. Two examples: Have white space on the right and draw three levels of channels. What you get is to see FTT's. Draw rays on the volume at four levels. What you get to see is money velocity trading potentials. What it is like to see the synergy of these two annotations is to see HOW THE MARKET WORKS FOR YOU. It is a very comfortable place to see for the first time that money is being offered to you at all times. And it very comforting to be able to take DATA SETS and do analysis with the DATA SET. We are looking at three questions: 1. What is gong on now? 2, What is next in the unfolding sequence? 3. How fast is the sequence changing? By annotating price and volume as above. And taking DATA SETS from the context of the annotations, you share with the market what is happening. You see the "flow". You see "what wasn't that". The flaws will show up soon. You build your mind to have conclusions surface when you transport in your mind a DATA SET to the place to do analysis. Analysis is pairing a DATA SET with a conclusion. That is, a belief that can be concluded from your mind as a consequence of experiencing the phenomena over and over. You can best experience the phenomena if you annotate price (3 levels of channels and internal formations) and volume (rays showing the activity ranges for making money). We monitor>>> analyze>>>>decide>>>>ACT. Then we repeat. This is the routine. There are hundreds and hundereds of thousands of hits by people who are doing this reading. Who, in turn, are doing annotations for monitoring effectively. Who have minds that are being built by experiencing the routine. The exchange of knowledge, skills and experience here is reinforcing. There is no "proving anything" to any standard of measure. That only happens external to knowledge, skills and experience. The exchange here achieves but one thing: personal growth. "Getting it" comes from doing the work. By reading the journals you get to find out stuff and see people succeeding in applying their knowledge, skills and experience. This post is to allow people to find out that annotating price and volume give the FUNDAMENTAL context for getting the job done. You can see, without exception, that a lot of people have the same foundations by now. However you do this beginning and the follow on, you are going to see and "get it" that this whole enterprise is a "positive feedback loop" that ultimately allows you to optimize making money. There is nothing involved that is not iterative refinement subsequent to establishing this foundational context. You are not building a morass of tiny rules for every situation like putting electrical tape on a beat up hardball. Instead, annotations give you a context in NOW all of the time. From that context, you do a routine that yields a result comparable to your knowledge, skills and experience all of which are growing on continuing success. Your log records your activities and observations: premarket, opening hours, midday setting, pm resumption and the daily debriefing. I do four pages of log. I print prints. I add notes like a journalling. I print the annotated screens. I punch and bind these products into a daily resume separated by a colored sheet. Binders form rows on shelves. So do your part to establish the context in order to grow. We work on our end too. Books are on shelves all annotated and 3M'ed with call outs. We print from all over and write and use files and boxes and file drawers and cabinets and one storage building space. I dragon 9 daily. 700 standard subjects have been catalogued to use as references for people to step off from where they are and into this paradigm. Cantasias are transcribed, illustrations are added and they go to web places. We have several levels of archiving.
No. FTT's occur when price fails to reach the Left trend line on a RTL Traverse. Attached please find a snip of the ES chart in question. I have gone ahead and removed the prior annotations and replaced them with incorrect annotations to better clarify my statement you quoted. If a trader felt bar 5 was an FTT - The first FTT (Green) - they would have added in the appropriate down channel lines (red thick). On bar seven, we see a second FTT form (Red) in the newly created down channel when price fails to traverse from right to left. At this point, the trader would then find themselves back on the 'right' side of the market. See attached snip. Again, I need to place a great deal of emphasis on this point. The above description is incorrect with respect to the actual market dynamics. At the point in time highlighted in yellow, we have an HVS (a flaw). I simply wanted to point out how a trader, even when getting the annotations very wrong, can often profit from their errors by simply following the rule set. I hope the above provided the clarification you needed. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1311117>
Joab, Here's my (beginner ) analysis... The red channel emerges around ~12:45 and expands on almost every bar. Cool if you are short. We're in a dominant traverse of the red channel. By drawing in the short-term traverse, the 'ftt' emerges. The ftt starts the non-dominant traverse that leads to a FBO. Beginner rule exit. Also, the green channel can be drawn in right after the 'ftt'. And note that the red FBO might also be a green FTT. Hope this helps (and I hope I'm right )... spooz Just read Jack's post. Sorry I din't add the Vol rays...
Thanks Spyder, that helps. Would I be correct in saying the second FTT (keeping in mind that this is all hypothetical because it's all based on an incorrect interpretation of the first FTT) would be an FTT of a tape, and not a channel? I don't believe the three points required for a channel have been established. Or is a new channel in place automatically when an FTT occurs establishing point 1?