What do these three situations say to you?

Discussion in 'Trading' started by 1a2b3cppp, May 28, 2013.

  1. The chart does show regions but it doesn't do too much to deal with a trader's context.

    In trend monitoring and analysis (as opposed to trendfollowing which does not work), a trader has a context for what he is doing.

    In a channel the first trend move begins in the old channel, then breaks out of the old channel and goes to the point that sets up the point 2 of the new channel.

    Ine the independent variable this has a direct correspondnece to A volume range established by the range of volume during that price traverse. I call this range A band. This is a volume "context" for the trend.

    Subsequently this range diminishes as the trend continues to move forward.

    this knowledge is comforting to know. It is also supportive. finally it can lend confidence to the trader. As a consequence, the trader is NOT in the CW world of anxiety, fear and anger.

    As point 3 of the channel is set, then the volume range is different. B band has come into being. It is between P2 and T2P volume values.

    thus three rays are drawn from their inception into the trend's future. they are what is called "in force". I put a box on the volume bar that sets the lower range limit. The box is T1. I note the volume in the log. this makes me keep aware of T1 and think about the trend as the trend moves forward in the market.

    some traders think about price. I have seen some that look at their entry and decide things based upon this price value. These people will never be able to rope cattle. you cannot rope a steer if you do not look at the steer.

    C band comes after the blue ray for T2F is set. It is a band between the red and blue rays. It is fairly narrow.

    We are dealing with volume limits and a person can never mistake what is what. (Except for the person who drew the chart you posted.)

    So these values can be used to define how trends come to their natural ends and a person does a reversal to collect the full offer of the given trend.

    As you see this stuff s not in books.

    I make people annotate charts using the tables I gave french fry. they read the math in the tables which precisely and uniquely define all of the pieces the market is made up of.
     
    #101     Sep 26, 2013