[Spydertrader]

Originally Posted by become »

But to clarify, do you mean only the differences visible in this snippet as posted ?

No.

I intended the information previously posted to included ensuring everyone focused exclusively on the three Laterals Highlighted in Blue, and (for the purposes of this specific excercise) ignore any and all other Laterals which devloped during the day. I did not intend for those working through the exercise to focus solely on Price.

HTH.

- Spydertrader

[rs5]

Lateral Drill

Lateral 1, 2 and 3 How are they the same?

1. All three laterals are dominant laterals within their own respective small container.
2. All three laterals are in containers on the same fractal.
3. All three laterals have a sym relationship between Bar 1 and Bar 2.

Laterals 1, 2, 3 How are they different?

1. Lateral 1 bridges two different trading sessions (end of one and beginning of the other) while Lateral 2 and Lateral 3 occur in the same trading session.
2. L1 and L3 have all bars contained within Bar 1 high and low except the bar with exits Bar 1 boundaries and closes outside the lateral. L1 exits with a VE bar. L2 has a protrusion outside of Bar 1 which closed inside the lateral before the exit bar.

How does the lateral start?
1. Lateral 1 Bar 1 is a VE bar in the direction of the container move.
2. Lateral 2 Bar 1 is a VE bar in the direction of the container move.
3. Lateral 3 Bar 1 is a OB UP, a reversal bar to the move just prior to the lateral.

Are there any differences in the inside formations?
1. L1 inside formations: Sym, Stitch Long – Lateral exit continue long
2. L2 inside formations formed several overlapping flaws: Sym, hitch, stitch short – Price test Bar 1 low then tested and broke Bar 1 high then exited long.
3. L3 inside formations formed several overlapping flaws: Sym, FBP, Hitch, Hitch, Stitch Long exiting Bar 1 high and closing above the lateral.

What is the relationship of the bars to the lateral boundaries?
1. L1 price hovered at lower half of lateral, tested Bar 1 low twice before breaking Bar 1 high in VE bar and closed above lateral.
2. L2 price hovered at lower half of lateral, tested both Bar 1 low and bar 1 high, before closing above bar 1 high. It took 2 tries to exit and close above lateral.
3. L3 price hovered at upper half of lateral, tested bar 1 high, never came to lower part of lateral, and closed above the lateral at first break out of bar 1 high.

What came after the lateral?
1. L1 exits with a VE bar in the opposite side of where price entered – continuation
2. L2 exits on the same side of where price entered the lateral – reversal
3. L3 exits in the opposite side of there where price entered - continuation

[sambrown]

My take on the lateral drill.

#1. Pt2 to Pt3 lateral movement. Broke out the opposite direction as coming in - continuation as PT3.
#2. Lateral movement after Pt3. Broke out the same direction as coming in - end of traverse and change.
#3. Same as #1.

[trader1109]

Here's my try...

[gosu]

Assume market continuous function.

A: First l2r of channel, p3; failed fbp, cont.; hold or enter @ p3 if not already in. Exit (not reverse) @ ltl and relax during second l2r; reenter @ rtl for either full or small r2l traverse.

B: Second channel, decl. pace; low volat l2r after VE on 2nd r2l traverse; anticipate bo of VE rtl and retrace to rtl of channel. If short from ftt of prior channel or p3 of current, exit or reverse into long for wash practice.

C: Nontrending after bo of 2nd channel. Centering and high risk. Exit wash trade and sideline.

[ptunic]

Tuesday, December 29, 2009

[MKTr]

Happy New Year!

I wrote a TS paintbar study to remove gaps. Wow. Unless I am missing something, the daily data looks profoundly different with gaps removed. If I did this correctly, it would be challenging, if not impossible, to accurately analyze daily data without gap removal.

MK

[midtown]

Re: Spyder lateral drill

Maybe oversimplified, but in the 3 cases of a lateral formed from a sym pennant, no matter from which direction price enters the formation, price changes direction inside and exits in the dominant direction.