[Spydertrader]

Originally Posted by NYCMB »

Do you mean there are Two Lateral Formations?

Correct. See Attached.

- Spydertrader

[rs5]

Originally Posted by Spydertrader »

See Attached.

- Spydertrader

Does the Lateral end when a bar closes outside of the first bar in the lateral? As that is the moment market leans towards that break out direction? It is not clear to me on the first yellow lateral why it ends in location shown. Please - will you clarify? Thank you!

[rs5]

What is a dominant vs. a non-dominant lateral?

At the cost of showing my ignorance, here goes

Lateral L1 happens earlier in the day with a wider swing (height of lateral) than Laterals L2 and L3. Thus L1 showing a more volitile condition. Without looking at the volume, I would guess that vol is higher at L1 than at L2 or L3.

L2 is much longer (time wise) than L1 and L3 (indicating directionless market?).

The first bar of Lateral L1 is an up bar after a pronounced up move. L1 is a curb of upward movement (bar 1 is up while bar 2 is down)- consolidation at the highs, while L2 and L3 are curbs of downward movement - (bar 1 in both laterals are down, b2 is up). L2 and L3 both occur after an inside bar formation, indicating that the market has already entered "pause" mode. Bar 1 in L2 and L3 both have a lower high than the bar prior to L2 and L3.

L1 formation of bar 1 to bar 3 is up-down-up
L2 formation of bar 1 to bar 3 is down-up-up
L3 formation of bar 1 to bar 3 is down-up-up

Bar 3 of L1 and L2 are inside bars compared to bar 2 while not the case in L3.

L1 has one upward violation testing the highs before the end of L1 as red bar closes below lateral lows. L2 has violates both upper and lower boundaries before picking a side and closes outside of L2 boundaries. L3 has no violations of boundaries before bar closes outside of L3 boundaries and L3 ends.

Price comes up into Lateral L1 and exits L1 down (change of direction)
Price comes down into Lateral L2 and exits L2 up (change of direction)
Price comes down into Lateral L3 and exits L3 down (continuation of prior move)

Outside Bar OB1 is a down bar after prior up bar.
Outside Bar OB2 is an up bar after prior down bar.

Both OB1 and OB2 closes near the open of the prior bar (tried to go somewhere but did not succeed)

Outside Bar OB1 occurs after L1 bars 1 to 3 (after a Lateral is formed), and violates the height of L1 bar 1 (swing high), but closes inside L1. OB2 is not in a lateral formation and does not violate the swing high (2nd bar prior to OB2).

Stitch S1 has same color bars - red red.
Stitch S2 has different color bars - black red.

S1 occur in the middle of a down move (down tape).
S2 occurs at the end of an up move (up tape)

[dkm]

Originally Posted by Spydertrader »

Today's drill .....
- Spydertrader

see attached chart for differences on OB's and stitches.
I don't see anything conclusive that differentiates the lats.

[Spydertrader]

Originally Posted by rs5 »

Does the Lateral end when a bar closes outside of the first bar in the lateral?

When I authored this post (quoted below), I had just these sort of questions in mind.

Originally Posted by Spydertrader »

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.

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.

Originally Posted by rs5 »

At the cost of showing my ignorance, here goes...

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.

Originally Posted by rs5 »

Price
Price
Price

Do you see that you are only using half the available data, rather than the entire data set?

HTH.

- Spydertrader

[Mr_black]

P/V in action ......(only P3 trades)

[rs5]

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.

I am confused. It looks like the pink lateral ends when the internal green lateral ends. And the internal green lateral ends when a bar closes outside of that green plus pink lateral??

Do you see that you are only using half the available data, rather than the entire data set?

Do you mean I am only looking at price now while I should be looking at price plus volume?

[dkm]

Attempt at lat differentiation:

1st lat, starting 09:50, begins with dominant black volume, but this changes to dominant short volume on the OB bar at 10:05. Lat ends with bo short.

2nd lat, starting 12:00, begins with dominant red volume, which changes to dominant long volume at 12:15 but this is followed by a change to dominant short volume at 12:30 (still inside the lat) and a further change to dominant long volume at 12:55. Lat ends with bo long.

3rd lat, starting 15:15, begins with dominant red volume and there is no dominant change within the lat. Lat ends with bo short.