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innersky
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Posts posted by innersky
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Tuesday, September 8, 2009Imho, your first down traverse is not valid as the RTL gets broken (10:15) on decreasing volume...
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innersky
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It should, but it doesn't. What does that tell you?Assuming that you are right about the fact that the lateral continues here, it means that an IBGS that pierces a lateral does not always ends it. (perhaps it must pierce it on the RTL to be a lateral killer?)
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innersky
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Tuesday, September 1, 2009.romanus,
at 14:05 there is an IBGS that pierces the lateral formation, shouldn't this end the lateral?
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thanks,
innersky
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A trader can easily learn to differentiate the various tapes, traverses and channels formed by the market, as well as the sequences of Price and Volume which landmark these specific events, by starting with a known entity - one which exhibits certainty as defined by the market itself. Beginning with 10:10 AM on 7-13-2009, and continuing through until 15:30 PM on 8-5-2009 the market has provided just such an event. In addition, beginning with the very same 15:30 PM Bar on 8-5-2009, move forward until 13:30 PM on 8-11-2009 in order to see the exact same event, but in the opposite direction.This Channel Drill requires the trader to construct their charts in such a fashion that one knows with 100% certainty the end has arrived for both entities described above. Whatever solution works for one part of a chart, must work for all charts in the time frames mentioned.
Two possible outcomes exist.
1. A trader accurately (and more importantly consistantly) annotates a chart and arrives at the correct outcome.
2. A trader uses "what works for them" and does not arrive at the correct outcome.
In either case, the market has provided everything required to arrive at the correct endpoint in both scenarios.
HTH.
- Spydertrader
A quick look shows me that the 15:30 PM Bar on 8-5-2009 -> 13:30 PM on 8-11-2009 period consists of a down channel, an up channel and a down channel, where each channel has 3 traverses. (I still had my annotations...)
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innersky
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Yes, but I have yet to completely code for all possible scenarios. Due to the limited capability of the Trade Navigator coding language ('TradeSense' doesn't currently allow for global / state variables or contain a 'looping' function), I only realize that the bar coloration code has missed a specific case scenario when I 'see' it form on the chart (When a specific example has no coding function, the current settings render the bar color blue instead of red or black). Once completed (hopefully, by the end of next quarter), I plan to make the changes available for free.- Spydertrader
Why do you need a looping function? Just for bar coloration?
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thanks,
innersky
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Take a look at the attached Chart snip from today (08/04/2009) ...What did the market form?
How do you know?
If you know neither answer ...
How many different ways can you annotate the chart snippet? Test to determine which of those ways represent the only correct method.
HTH.
- Spydertrader
When we look at the first R2R2B2R (13:00-14:00) we think down traverse. However, when price goes through its left trendline, it does so on decreasing volume. This means that we do not have a complete traverse. As such, 14:40 becomes the new pt3.
After our new pt3, we can see a R2R forming, meaning a new faster fractal is forming, that also has to complete. When this fractal finally completes, we can see that it forms an FTT.
At 15:50 price does go through the left trend line on increasing volume, and we have confirmation that the down traverse has completed, and an up traverse has started.
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innersky
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For the purposes of this discussion, I don't remember Spyder mentioning the IBGS effect, so, IMO, it may or may not be operative.Actually, the answer does not lie with Spyder, but in the charts.
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innersky
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What I know about lateral formationsTo start a lateral formation minimum 3 bars are required where bar 2 and 3 are contained within bar 1
It can be ended in several ways:
- 2 consecutive closes outside the lateral boundaries without forming a new formation with the exception when these 2 closes are flaws, then we need 3 bars outside the lateral
- an ibgs that pierces a boundary
- when a new lateral formation is created inside the lateral formation
There are 2 types of lateral formations that matter : those that start on or after pt2 (and before pt3) being non-dominant lateral formations
and those that start after pt3 being dominant lateral formations
Feel free to add missing things/make corrections
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innersky
Correction, that ibgs bar must be on increasing volume in order to kill the lateral
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innersky
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What I know about lateral formations
To start a lateral formation minimum 3 bars are required where bar 2 and 3 are contained within bar 1
It can be ended in several ways:
- 2 consecutive closes outside the lateral boundaries without forming a new formation with the exception when these 2 closes are flaws, then we need 3 bars outside the lateral
- an ibgs that pierces a boundary
- when a new lateral formation is created inside the lateral formation
There are 2 types of lateral formations that matter : those that start on or after pt2 (and before pt3) being non-dominant lateral formations
and those that start after pt3 being dominant lateral formations
Feel free to add missing things/make corrections
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innersky
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It appears you continue to miss my point.Whatever something "looks like" in the Price Pane falls under the catagory of unimportant because a tape does not ever look like a traverse (or anything else) when observing the Volume Pane.
You can call something a tape, traverse or channel (hell, call it a goat if you like) by looking at a Price Pane, but Volume always indicates exactly what the market has built for you to see.
Without exception.
Three choices exist, and we call these three choices tapes, traverses and channels (skinny, medium and thick; or L1, L2 & L3 if you prefer different nomenclature).
No more 'Chubby' tapes.
No more 'Faster Fractal' Traverses.
No more Lateral 'Movement.'
Tapes build Traverses and Traverses Build Channels.
Again, whatever something "looks like" in the Price pane does not matter in the slightest. The Gaussians always tell you what the market has created.
Without a doubt, if asked, a roomful of traders would provide as many answers with respect to what the market created across most of today (7-20-2009). Again, if one chooses to look at what today's 'something' "looks like" by observing the Price Pane, a variety of opinions develop. However, only one possible accurate answer exists, and it resides in the signals the market has provided in The Volume Pane.
HTH.
- Spydertrader
While I do understand that volume is the most important part of a chart, do we still need price for context? ie price must leave a traverse on increasing volume, and pt2 must be outside the previouse traverse (and gaussians still have to match channels)
Is anything below a traverse considered a tape?
While I do understand what fractals are, it seems real hard to apply this principle consistently to volume.
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innersky
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Ah, the old "fractal" problem. So far, we have been told that our "fractals" are tapes, traverses or channels. My understanding is that each "fractal" has its own "volume sequence" and that the "gaussians must match the tapes".I came unstuck when I was reliably informed that the period from 11:05 to 13:05 on the attached chart was "just a tape".....So are you saying that anything below a traverse is by definition a tape?
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innersky
The Price / Volume Relationship
in Technical Analysis
Posted
This was September 9 for me.