Thanks for your responses, Spyder and Mak. If I am now on the correct page, I will no longer "sweat the little stuff"
spydertrader. You have the patience of a saint... A few questions if I may.. 1. Having entered only at a point 3 are we to exit at the cross of the right trend line if the price bar goes through RTL, but then retraces back into the channel form where it has come and closes still within the channel, or only if the bar closes outside the channel. I ask because from your chart , the LAST red FTT, you have the light bulb and pale blue arrow on the black bar that is still within the down red channel (having shorted from the orange point 3). 2. Am I correct to assume the last lightbulb with it's arrow pointing to the right is an exit of the last long form the olive point3 ( at price 1452 approx) at the close of the market..? 3. Are we to make no annotations other than the channels and the points 1,2,3.. and initial tapes after exit to help establish the next new channel.. and our entry and exit marks..? My sincere thanks. FilterTip "every day I wake up and realize I know nothing and then I smile " P.S My appologies Spydertrader.. My edit excludes a refernce to the 3rd trade as this 3rd trade, long form the olive point 3, would not be taken by forest Level traders......please excuse my error here..
Let me start off by saying, this isn't a cookbook. Even though I have outlined when to Hold, Enter and Exit, we aren't trying to create entry and exit rules per se. Following the above mentioned ''guidelines" enables the Beginning trader to remain on the Forest View Resolution. That is all these guidelines are intended to do, and everyone should view them as such. The guidelines should help you to avoid reversing on an FTT, only to have experience an FBO or another FTT which takes you back the other direction. To answer your question (and without taking context into account), if price moves more than one tic outside the price channel - exit. I should have been more careful in drawing in the arrow. See exit guideline above. Yes. The market closed. Time to exit all positions. Make as many (or as few) annotations as you like - unless doing so confuses you. Remember, these guidelines exist for the sole purpose of helping the beginning trader to remain on the Forest Level Resolution. You should begin to learn how to 'drop down' to catch the FTT, then immediately zoom back out to the Forest View. The above guidelines simply provide a structure for the learning process. After reading the above several times, I do not know what information I should glean from the paragraph. If by not understanding the above, I have answered in an ambiguous fashion, please let me know. Good trading to you. - Spydertrader
spydertrader Thx for replies..I understand re: cookbook. It's more like an atlas of the whole country rather than an A-Z of individual streets..with all the one way signs and no entries and no left/right turns..etc.. Ignore the P.S on my last post, I was confused att about the 3 rd trade around the flaw situ... For the purpose of seeing if I am understanding the slightly revised rule set re: FTT etc..attached is DAX chart so far,.. This slightly revised rule set does help me to stay at a higher resolution..or at least I hope I am on a higher resolution..? It's taking the trade at point 3 that does it, and keeps me away from the inter-channel responses. Great stuff... Many thanx. FilterTip
I added one additional Channel to your annotations to help you 'see' the Forest. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1354523>
Hi, Start of the day was interesting IMO. Especially on YM it became quickly obvious that the dominant channel was down (see attach) but also on ES it could be seen. So I was waiting for retracement that started around 9:50. While price was increasing, volume was decreasing confirming main trend was down. Then at 10:05 main trend resumed starting FBO on YM and quickly after that the same happened on ES although it first touched the LTL and then broke right through RTL on lower volume which is good, low volume means change. I though this information was somewhat contradicting, ES hitting left trendline (risk of volatility expansion / price continue going up) and the FBO on the YM. Then the Forest view helped because the bias was down plus the YM is leading. Without YM this move would have been impossible to spot because the 10:10 bar on ES could be considered an FTT but one that would be very hard to spot. regards, Ivo