Quote from BA_Trader:
P' is the right hand TL - can be drawn after 2 5 min bars
V' is the envelope of volume
the left hand side of a channel is determined roughly by the maximum instantaneous velocity of volume (aka pace) in the context of a rising envelope.
Trend channels are the ultimate constructive diagram for trading. However -- it is only a diagram and it's up to the user to make the most of it.
"To avoid the fallacies of natural language in the further process of design Alexander introduced the idea of 'constructive diagrams' as a more abstract means of representation. On the one hand these diagrams should "summarize aspects of a physical structure by presenting one of the constituent patterns of its organization" (form diagram), on the other hand the diagram "summarizes a set of functional properties or constraints" (requirement diagram). A constructive diagram is a combination of both. Each diagram describes the interacting and conflicting forces of an independent subproblem."
HMMM....
BTW!
BA... I really had to think deeply about your comments here. I actually attempted to post several times but kept scrapping. I wanted to relax a couple assumptions and just focus on generality (ie. 2 bars). So really what is salient about P' is just whether it is Positive (ie. increasing) or Negative (ie. decreasing) and then being alert and being ready to act at the set {P' = 0, V'=0}. This is consistent with right line orientation and PV. Y/N?
The V' stuff would be the same concept of slope but done on the volume bars. So the V' would be the Positive (ie. increasing) or Negative (ie. decreasing) trend lines demarked by the consecutive volume bars... Please, anyone clarify or correct. I am not accustomed to working without the ability to check with someone for merit, so it is possible that I may have taken an unintentional left somewhere along this path. I assure you it is definitely unintentional.
Now P'', V''...
Well, what I could work out was the 3x3 versus 2x2 orientation. Price on 1 axis, Volume on the second axis, thus 4 possibilities, and the null case being the boundaries between the quadrants.
Superimposing a period pair you get 16 possibilities.
a 2x2 PV for the base fractal and additional 2x2 PV for the sub fractal...
Thus 16 possibilities. Now to how to interpret the pairing of the sub fractal motion as a consistency reflected in the base fractal motion. Assuming (and I hate to assume), P' is the right line of the base fractal, than P'' would be the P' of the sub fractal. On the base fractal P'' lines would be presumably be the equivalent P' lines of the sub fractal would thus be equivalent and/or correspond to the price action increasing or decreasing above or below P' depending on the sign of P'... Detractors, EASY! If anything, let me blab for the sake of not trying to blab as fortunately others do see....
I'll try to furthur explain.
Take P'>0. This means the right trend line is increasing given the first and third points (ie. the line connecting these two points have a positive slope)...
P''>0. This is the slope of the right trend line of the sub (ie. shorter period) fractal. On the base (ie. longer period) fractal, P'' is the price increasing and decreasing to the left of the right trend line (ie. traverse). So when P'>0, a P''>0 is a traverse to the left trend line and P''<0 is the traverse back to the right trend line (ie. P').
P''<0 vice versa (ie. switch the orientations)...
So, in the 16 cell composition of PV (longer period) cross PV (shorter period) - a shorter period PV matrix in each quadrant of the longer period PV matrix... How would the migration work...
This is certainly getting interesting... Pls, any comments from anyone especially corrections both minor and major...
Secondly, what would the ratio be of longer to shorter period fractals...
???
