The market is dull tonight, so I went and read the Parallel-Universe Jack thread here for today. It passeth all understanding why they do not long for "Red-Light-Short-Green-Light-Long". I have not seen so much bullshit since Bernie Kornfeld's "Do you sincerely want to be rich?". Alas, that was before most of you were born.
That of course depends on what you mean by "consolidation". If by that you mean "narrow range", TDT properly tuned for the time frame in question will flatline orange. If you mean "congestion" or what Jack calls a "high volatility stall", it will whipsaw you like any other oscillator. It is not a tool you rely on in the seconds after a Fed announcement, for example. But properly tuned for a "normal" market it will keep you in a position through retraces pretty much like Jack's channels and volume analysis will. SCT is trading for geniuses. TDT is trading for dummies. SCT is fast. TDT is slow. I designed TDT for me. I am a slow dummy. If I were a fast genius I would be posting in the Alternate Universe thread.
I usually follow the charlatanic SCT model and only post ideal examples of TDT, but here is a negative case in point.
Sorry, I view price movement simply from specific chart oscillations (chart specific resistance and support). Consolidation to me is price moving in a narrow continuing range of LH's and HL's. Your "orange" answered the my question via color. I thought your choice of using the term "flatline" was distracting since normal price movement, for me anyways, never flatlines. I would like to see one of your people post a few charts of price transitioning from some of the strong up moves or down moves they have been posting to show how TDT quickly depicts your "orange" color change and then the transition from the "orange" back into a strong directional move. I fully understand, like what I do, that your color bar is chart specific. I would assume the faster the chart the more noise or "consolidation" could be presented. I consider myself an intelligent simple trader so I guess that puts me inbetween you and Jack. I'm a smart guy that prefers not to think too much inside a trading environment. Thanks in advance for the response.
An even better example is what is happening overnight in NQ right now. So you don't try to use a hammer to turn a screw.
Thanks for posting Art, um, Joe er N.Q. While they give the impression of being smarter than the average bear, it's really just a lot of hype and hoopla along with some sparklers and a smoke to cast extra shadows on the mirrors. After all, if they were that smart, we wouldn't be having this conversation ... we'd be getting our asses kicked six ways to Sunday by their PnL ... ain't happened, ain't gonna happen. *** Thanks for sharing, here's how I see (saw) things. BTW, your explanation of how the chart performs during different market conditions is pretty accurate, which is why one can never forget money management, no matter how many times you nail it and think you're a genius!
I only trade NQ. So to me a "consolidation" is a four tick range at mid-day. A "congestion" is a series of alternating red and green one-minute bars 10 points high after a Fed announcement. Being an old dog that is roughly what I remember the classical distinction between the two to be.
Here is the kind of example you were looking for of an "unclean" transition (my beloved E-Signal). Remember, I am not promoting TDT to smart guys like you, just to the average run-of-the-mill ETidiot. So I don't show them such examples.
Thanks, JJ. For not posting one of your charts showing entries to the the tick of the turn. It's so humiliating.