[Spydertrader]

Originally Posted by traverse »

Why is the 2nd one not a lateral?

All lateral formations develop out of a three bar Series. Bars Two and Three sit 'inside' Bar One where the Highs of Bars Two and Three sit no higher than the High of Bar One and the Lows fall no further than the Low of Bar One. The 'second' example shows Bar Three with a Higher High than Bar One of the three bar series. As Such the second example cannot form a 'Lateral Formation.'

Originally Posted by traverse »

Are there paramaters to use as a guide to know what a valid lateral is and if one can end before price exits it.

Originally Posted by traverse »

Currently if it's not the first 2-3 move of a traverse clarity of laterals is way slow.

After completing the 'tape drawing' drill, and after one begins to 'merge' the individual 'two bar' tapes into longer trends which continue the current 'tape fractal,' stop annotating 'tapes' within Lateral Formations. Begin to note the significant shift in Pace which develops inside every Lateral Formation. Note as well the changes which develop as Price moves from inside a Lateral Formation to an area where the Lateral Formation ends.

The market provided a very nice example today (starting with the ES 11:25 [close of] Bar).

- Spydertrader

[ehorn]

Originally Posted by Spydertrader »

Volume leads Price. Always. And without exception

....Lastly, the market speaks on every single bar delivering its signals to the trader in a timely fashion – and well in advance of the next trend. It turns out; one need not know how long a particular trend will last. One only need know the signals for when a particular trend has come to an end. As all trends overlap, where one trend ends, the next trend begins....

- Spydertrader

Hear! Hear! It speaks and we strive to listen.

[rs5]

8 July 2009 - still studying, monitor and annotate. These are all hand drawn. (Pardon some of the lines, ninja cursor is snapping to some invisible grid and I have not yet found the toggle to turn it off).

[Spydertrader]

Originally Posted by rs5 »

8 July 2009 - still studying, monitor and annotate.

See Attached.

- Spydertrader

[El Guapo]

I'm climbing on board as a sponge to soak up and absorb.

[friarwilliam]

I am climbing on also. I too wish to drink from the cup of life.

[Spydertrader]

Before one can learn how to learn to thoroughly and correctly annotate a chart, one must learn the process of differentiation. In other words, every trader must learn to distinguish that which he / she believes exists from that which the market has actually provided.

Attached, please find an example of Monday's (07/06/2009) ES 5 minute chart. I have marked several areas which, at first glance, appear similar, or to the untrained eye, even look exactly the same. However, subtle differences do exist among the various areas annotated.

Today's drill involves determining what answer best describes the differences, and once located, by using the information provided by the Price Pane and / or the Volume Pane, applying that answer onto other chart days in an effort to 'see' if your answer 'works' for every other exact same scenario - irrespective of market day.

Feel free to use your own charting software for this exercise. I snipped down the chart in an effort to make it 'fit' this space.

- Spydertrader

[jbarnby]

I'll take a stab at the laterals.