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Spydertrader
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Everything posted by Spydertrader
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The correct attribution should read, "The Gaussians must match the trend lines." I'm confident many have read a post (or ten) by Jack clearly stating how one could almost trade by simply focusing on Volume alone. I'd even hazard a guess than more than a few people could post a link to one (or several) example(s) of such posts. Now, let's look at the exact question posted by Neoxx ... Anything jump out at you in particular? If so, what might one conclude? Everything is not always what it appears to be (at first glance). I encourage everyone to look at what appear to be "legitimate alternatives" in this case, and by doing so, test said conclusions against known circumstances in an effort to determine whether or not the statement represents a valid conclusion. - Spydertrader
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Yes. Yes. HTH. - Spydertrader
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The path to determing what something is or is not resides in the Volume Pane. A number of traders have fallen into a very bad habit over the years. They watch the Price Pane of their chart, rather than, spend the bulk of their time focusing on Volume. Let's face it. Price is a lot more fun to watch - especially if Price rockets off in the direction you entered the trade. Traders do this because they all want to see "how they are doing" in a trade. Enter short, and as long as the market keeps making lower lows you are making some very nice coin. After all, making money is the goal, right? Well, no. It really isn't. Sure. We all enjoy banking profits. However, 'Making Money' represents a consequence of the learning process - not the goal. Learning to see when the sequences of Price and Volume have reached completion across all fractals, learning to correctly and consistantly understand the fractal nature of the market, learning to stay on the right side of the market for one's specific trading fractal - these all represent goals. Learn these things and the result of doing so is profits. In other words, the 'mental image' everyone needs to develop, with respect to a tape, traverse or channel, comes not from the Price Pane, but instead resides in the Volume Pane. HTH. - Spydertrader
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Where one place the 'Point Two' of a 2 Bar tape depends on the slope of the RTL. Note the attached example. In both of the above examples, we create an RTL, first by connecting the lows of the two bars. By 'cloning' the RTL, and then sliding this 'cloned' line upward until it touches a single line, we arrive at the correct location of our LTL (and of our 'tape' Point Two). While, quite often, the geometry of our trend lines might appear quite odd - compared to our mental 'image' of a tape, traverse or channel - the geometric configuration of our Gaussians remain consistant across each and every fractal. HTH. - Spydertrader
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In this specific example, no. - Spydertrader
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This Morning's non-dominant traverse.
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Your post accurately describes the Lateral Formations as presented in this thread. The lateral formation continues until terminated with two closes outside the Lateral boundaries (created from the High / Low of Bar 1) - except where the 'two closes' form a 'flaw.' In such a case, we require a 'third' close outside the lateral boundary in order to have reached 'termination' of the previous lateral. I did not extend the lateral boundary ending the First Lateral (in the 'more' example) simply to prevent the annotation from 'covering' the next two bar closes (precipitated by the need to 'squish' the chart due to the day's extended range). I wanted everyone to have the ability to see the two closes, rather than, have them somewhat obscured by the Lateral Annotation. HTH - Spydertrader
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From Today (07/14/2009) ...
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You may define them (to start) in any way you choose. It doesn't matter if you stumble onto the correct answer the first time through, or even if your definition represents some wacked out theory straight out of left field. The whole point is to begin a process of learning to narrow down the possibilities until you arrive at the only possible answer - which just happens to be the correct answer. For example, let's assume someone decided to define the two groups of Laterals by using Bar 1 'color' (Bar 1 as 'Up' or 'Down' based on the color of the Price Bar). Easily, one could place all seven laterals into one of two groups - using such a defintion. However (as we all know), the Price / Volume Relationship operates with respect to a neutral bias, and as as result, 'Up' or 'Down' does not represent a correct orientation. So, the trader learns 'Up' / 'Down' doesn't 'work' with resepct to differentiation, and a such, also learns the market requires another (more accurate) defintion. You've chosen to define the Laterals as either dominant or non-dominant. All that now remains is for you to check with the market in an effort to see whether or not such defintiions accurately represent all seven laterals on this specific day, as well as, on any other day. HTH. - Spydertrader
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You already know the answer. Should you not believe that you actually do know the answer, simply apply the exact same construct used for your orange lines onto another area of the same chart or another chart from a different day. If you believe you have a certain thing, and after applying the same construct onto another day it appears as if your original idea doesn't work, then perhaps you need to apply a different construct. If things do work as expected, then the market has provided the answer you seek - as it always does. I've done this many, many, many times in the past. The fact that questions still exist in this area tells me that having me draw lines fails to transfer the importance of process to those with an interest in learning. Therefore, this time around, I plan to create an environment where the answers come from the market itself, rather than, from me. In such a fashion, the individual learns the process involved with learning how to learn. Everyone must learn to differentiate that which actually exists, from that which, they believe exists. - Spydertrader
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As a set, the seven laterals each fit into one of two subsets. How one chooses to define these subsets enables the trader to determine, in real time, what context the market has provided. However, we do not define these subsets by what happens after a lateral has ended. - Spydertrader
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Focus on creating Gaussians across three trading fractals. In other words, pay close attention to Volume. These represent stitches ... A Two Bar formation where Bar Two has increased Volatility compared to Bar One. In addition, the two bars have an equal high, or an equal low between them - but not both. The answer here depends on context. However, by differentiating the various examples of stitch formations which develop on any market day, a trader can know the context provided by the market, and as a result, know the answer for each specific scenario. - Spydertrader
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By adding the correct Gaussian Formations within the Volume Pane, a trader can know when the market has reached Point Two of the particular trend, Point Three of the particular trend, as well as, the Point in time where the current trend fails - and the next trend begins. See Attached. - Spydertrader
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We define Tapes, Traverses and Channels by each having certain characteristics which represent various geometric shapes. Unfortuantely, many people attempt to compare and contrast based on a visual derived from the Price Pane. Such a paradigm, quite frequently, creates opportunity for error. I recommend the lower portion of your chart in order to determine whether or not one has a Tape, Traverse or Channel. - Spydertrader
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If you cannot apply your answer onto other exact same scenarios on additional market days (and arrive at the exact same conclusion), then perhaps, you did not arrive at the correct answer. The goal with this thread remains moving people to seek their answers from the market, rather than, from an individual. Place some traverse lines on your chart, and see if things don't look clearer for you. The market provided seven laterals today (7/10/2009). Try dividing them into two seperate groups. - Spydertrader
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Perfect. Nicely done. - Spydertrader
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Where Do I Start... Picking Stocks to Trade?
Spydertrader replied to Dompie1985's topic in Beginners Forum
You might check out this post. - Spydertrader -
Right House; Wrong bed. Or as they say in the Southern USA, Right Church; Wrong pew. - Spydertrader
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Nice to see you still doing well. - Spydertrader
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If you apply your answer as to when one ends a Lateral Formation, your answer 'ends' the Lateral far sooner than where the lateral actually ends. In other words, please locate the "first bar to exit (close out of) the lateral formation" (your answer) and determine whether or not the lateral actually ends at such a point. I've market the correct end point. I think you'll see how your answer incorrectly would end this lateral several bars prematurely. As outlined in this post ... HTH. - Spydertrader
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When I authored this post (quoted below), I had just these sort of questions in mind. You've developed an answer which states "a lateral ends when a bar closes Outside the Lateral Formation." Now apply this answer onto the attachment of Post #57 - specifically, the 'pink' highlighted lateral formation. Does your answer 'work' in this specific example? If the (pink) Lateral Continues beyond the point in time where your answer develops, then perhaps, a different answer better describes the phenomenon in question. Such is how learning the process of differentiation begins. Everyone, from a neophyte just today deciding to investigate the potential for earning a living by trading markets, all the way to the most seasoned investors and traders - such as Wareen Buffet - began their journey the exact same way. We all remember what it was like to be new. Nobody choosing to participate in this thread need concern themself with "showing their ignorance" in a post. Mistakes and errors occur. Learning from those errors represents one of the best opportunities to move forward. It is the process that matters as success represents a consequence of the the learning process. Do you see that you are only using half the available data, rather than the entire data set? HTH. - Spydertrader