Yes.
I post to try to be clear. To post for completeness, I choose to not work in reference to one kind of thrend or another. The reason I do this is to promote a neutral bias.
I consider that the past is to the left and the future is to the right.
NOW is the present and the point in time from which you judge the past and the future.
Johnny K is making a strong effort to understand. It is extremely important for all people to "know how to know". What is going on here is getting things straightened out so understanding can come to pass.
Making money is always possible as a consequence of change. So I am presenting stuff in response to good questions being asked by people who are definitely going to be rich.
I must go to where a person is. It is not possible to support the interests of any person without going to where that person is. To expect anyone to understand where I am is an impossibility.
Johnnyk is drawing his illustrations to describe what he understands. We need to deal with this to get him to the place where he begins to use charts of the market.
Thus far, we have failed. I could not explain channels to him and I made the mistake of introducing more vocabulary that is not going to work to help out either.
He does not know what a traverse is. Worse he assigns his definition to it which is not conventional nor correct.
You find that you do not get responses. People are having a particularly hard time going to where you are. Many languages are written from differing viewpoints. They evolved over time from different cultures. A good project for children is to collect documents from many cultures and also from individuals who have accomplished a great deal within a culture.
Do systems of numeration next.
For making money, a very powerful thing to do is to watch the present move into the past. For you, you want to watch the present move into the future. Good luck. All charts, you will find, gradually move to the left.
After a while you will begin to be conscious of more and more.
For making money one thing to get straight is that straight lines work. They can be applied to learn how markets work over and over.
As Old Timer has pointed out to me; trillions and trillions are made in markets by the money that is put into the market. Here I deal with questions that lead to sharing those trillions of dollars. I know that one person cannot spend the money that he is capable of making. I feel that as many people as possible should be sharing this extremely large quantity of money that is piling up.
Channels work. This is a tough concept to get straight. There is no reason what so ever to agree that they work from the definition nor the simple construction technique.
The bottom line is this. No one can easily explain using common vocabulary the efficacy of or as to why channels work.
When a person "gets it", they move to a consciousness that is something that makes them millionaires in a short time.
Here in ET, people like you chat about lettering from right to left as a task that is not something you can handle.
At some point you will get to a place where you begin to think about getting rich. That will compel you to work to understand how to make money.
I mentored two people today for about three hours each. they looked at arrays of screens either theirs or mine. without exception they know how channels work.
They know that 1 tick of ES is worth 125 dollars and one point on ES is worth 500 dollars. They see it that way for one reason. they are dealing with 10 contracts.
Some people in ET do not make 100,000 dollars a year. We are talking about 200 points or alternatively 800 ticks.
If Johnnyk used today's 5 min chart on ES, he could have drawn a channel right to left traverse at 10am to note the news. On bar 7 he would have seen point 1 at the bottom and point 2 at the top. This, I have suggested, is a traverse across a channel. Point 3 forms at the bottom of bar 8. Three points define a channel.
In this case it is a 4,000 dollar channel called a "tape". Tape channels are composed of bars that fully traverse the channel that contains them.
Every day begins with a channel that is driven by high volume. Usually four channels occur in a day.
This channel extended to the top of R. Top of R is the current IT channel top for ES in this quarter.
BY 10:05 today you had, defined for you, the first channel of the day and the upper price limit it could go to.
What happened? This channel worked and it stopped where the IT channel line corssed it.
What is the result besides making 4,000 dollars?
For you, you learned that you didn't get any answers. What all can learn is that by drawing a "right" trend line and by drawing a "left" trend line, a person gets to "see" the first trend of the day reach the top of R.
More deeply, a person gets, once again, another demonstration of "channels work".
Bars 8, 10 and 11 yielded,respectively, points 1,2,3 of the first right to left traverse of the second trend of the day. This was a start of a 3,000 trend. Bars 13 and 14 became the "new point 3 that completed the second (always left to right) traverse.
We see that Johnnyk does not know what a traverse is by now. All of his traverses have two legs (a leg is a line from a first point to another point). His look like V's and are one color and wrong.
Tough for the moment.
since e make money by following trends from one end to another, we are short now and going from about 46 to 40. a six point run.
It takes five traverses ending at 11:00 on bar 19 of the five min chart. This is the sixth traverse failing to get to the left channel line.
You get to see from volume how the pace of channels are determined. High volume gives a fast pace. Bars 7, 8, and 9 are high volume and you do PRV 7 times and note at 5 min the total volume. You "know" you are making money (4,000) continually as long as the volume holds. You pound through the IT channel line and fail to BO past it. As Tennet says it is a slam dunk and as Chenny says you can take it to the bank. actually what is said with athority is that "channels work".
After another 3,000 dollars you see the second channel end and give you point 1 of the first traverse of the next channel.
This was an 11 point H/L spread day. So far you have two trends worth 14 points.
It looks like an "M" day. To nail three times the H/L range (choose a daily goal like whatever) a person has some work left to do. 33 - 14 is 19 points and only two trends left in which to get the job done. For four trends we go up down up down. the last trend was from 44 to 35 so that one gets a lot out of the way. Call it another 4,000 dollars. We need to eak out about 11 points with the up trend that went through midday. I used bottoms of bars 16 and 26 to get point 1 and new point 3. Top of bar 20 was point 2 just at the end of thetwo bar "tape" that began the first traverse of the channel.
we hit the left side of the channel 4 consecutive times after the first time to set point 2. This is an example of channels work. The channel is 3 points wide. All the cycles of traverses are shown on the 5,2,3 STOC. BY bar 55 the midday is over on the vomue breakout and the "long" is over on a failure to traverse on the 11 th traverse (count them on the STOC also to find 11 there.
this brings up whether of not 11 points could be made on the third channel of the day. It is a "c" channel. Low volume is "c": slow paced and long. "a" is fast paced; and B is medium. We had one fast, two mediums and one slow.
Slow makes a lot of money. For a given price you may be making money at that price 4, 5, ,6, ,7 times.
Thee was a long thread on averge points per day fior Elite traders. The vote seemed to indicate that 1 point a day works on the average per copntract.
If wee see the channel thing works 4 out of four times. and there are four channels we see more can be made. so far for three channels we are looking at 22 points where a point is 500 dollars.
We have channels down we have traverses down and we have 11 points that have to be made in the "c" slow paced channel. The 11 traverses help since the channel is so slow. Can we use the 3 point width to make 11 points with 11 opportunities. Can we be 33% efficient? Well we have to get two pairs and spikes straight to do that. If we do , then we make more than 11 points in 11 tries. 33 points at 500 a point is one day of 22 days a month or 250 days a year. 75 hundred points a year at 500 bucks a point.
QED.
Now let's learn channels, traverses and failure to traverse. Add to that slow channel pace trading that requires getting to be able to exit and enter traverses to make money using the same prices over and over and over.
So far I type and it is nopt understood. you say and draw pictures to prove that you do not get it or you post about which direction people letter in. to day was a day that made over 15,000 dollars when a contract point isworth 500 bucks. That is, if you are trading 10 contracts in ES. ! contract only makes 1,500 dollars.
Why did the last channel (short) not go any lower. Why? Bar 64. That is the 64 dollar Q.
