[ehorn]

A premarket Differentiation Drill for those interested (see attached).

EDIT:

The left is from: 7/14/2009 7:15am - 8:20am
The right is from: 7/15/2009 7:55am - 8:35am

All times Eastern

[Spydertrader]

Originally Posted by romanus »

Would I be correct extending the lateral further as shown by dashed lines in the attached?

In this specific example, no.

- Spydertrader

[ehorn]

Some trading notes for the day...

[romanus]

Originally Posted by Spydertrader »

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.

My take on lateral differentiation. Compartmentalizing then into:

1) the ones that FULLY contain P2 to P3 movement of 'something' and

2) the ones, that don't,

allows for matching them with correct gaussian of correct thickness.

[Spydertrader]

[Spydertrader]

[Ezzy]

On the Building Annotations, L1 regarding #3 and working through the example there, could you clear something up? On some tapes it isn't clear on which bar the pt2 is. For the 2 bar tape does it matter if price follows a 1 to 2 to 3 movement within the bars, or just use the bar ends and place them where they fall. In the attached clips some of the tapes would have made their pt3 before 2.

Thanks, - EZ
PS: Sorry for the small pic, couldn't get it to post larger, will have to click it.
[media]http://www.traderslaboratory.com/forums/attachment.php?attachment id=12224&stc=1&d=12478084 75[/media]

[Spydertrader]

Originally Posted by Ezzy »

For the 2 bar tape does it matter if price follows a 1 to 2 to 3 movement within the bars, or just use the bar ends and place them where they fall?[/url]

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