Thanks for putting up the OTR chart. I annotated the print shown at the right. The volume pane illustrates acceleration and deceleration. It also shows peaks and troughs.
The bars involved are five minute bars and the price profile pane shows the delineation of each five minute bar.
The OTR profile elements also show how price "oscillates on "two pairs". the many formations and patterns ordinarily used on praice action charts are explained by the profile and volume panes shown here.
As you can imagine this chart streams slowly from right to left giving the expert trader ample time to glance occasionally at the progress.
The 18 minute hold was done in the context of five minute bar annotation. Here you see how each bar formed and why the envelope on the five minute chart was informative when point two was being reached. At point two there was the advent of the first part and the second part in SKO's terms.
I can only recommend that a person do drills of this sort of thing. A drill is an exercise in "looking" primarily. MADA has its parts and the housekeeping of annotation is done in M. M gives you where you are. the "looking" is dealing with the other two parts of the triad of:
1. where are you in cycle?
2. what is next?
3. How fast it the cycle changing?
Obviously "looking" is done to determine 2 and 3.
The first trade was from point 1 (FTT) to 2. Two things came next one after another according to the P, V pattern of the leg from 1 to 2. About three bars did the job. First the RTL of the former pattern was crossed, then second on increasing volume a peak was reached.
This is so different than seeing a set up, betting on the set up, setting a stop, and trying to reach a thought up target. Most people fail at becoming skilled to do this and those that do often have stops hit and/or miss targets. It is very difficult to reason through the rationale for choosing this kind of gambling apporach. FB123 explains thoroughly how he got the mind set he has to do the gambling. He is passing it on to another person who is yet to be successful and was using a room where calls were made using another gambling technique.
Most people in ET do gambling type trading which is the convention of CW.
The reason for the three steps above is that they describe the "looking" part of using the P, V relation which is a hypothesis set that has a corresponding set of parametric measures. This is where increasing and decreasing come from for volume. Each condition has a corresponding result for the price circumstance. One condition is the hold condition ("continue") and the other is the orthogonal condition "change".
MADA is a deductive routine that applied the paradigm and the closure of each loop of the routine leads to either "continue" a hold or "change" by completing a reversal. The less skilled often do a reversal as two events one after anpother. In this thread we have focussed on a "change" that has a 6 minute window between the beginning and end of the change interval.
Sko's underlying question ws one that deals with how to observe the interval in which "change" occurs and observe its more detailed beginning and end. Obviously when he grasps the details here, he is pretty well set for trading with great skill for the part of trading which entails "change".
It turns out there is more involved with the aspects of "continue" than there is with the aspects of "change". Money making occurs mostly by perfecting the HOLD part of trading. I was in the market 80% of the time shown. It is easily seen that I could have more than doubled the money I made were I to have shifted to a faster fractal as evident on Chart's posted OTR chart. What was it like to stay on the fractal we traded as a group? I think it was a little hairy for the first trade and just right for the second trade. But by "processing" the faster fractal, it was possible to keep in mind that the nesting of fractal involves completing the sub fractals using the singular pattern that applies to all fractal in all markets.
One a person moves mentally to the place of understanding the fractal nature of the market, a whole new world appears. If the person annotate, concurrently and thoroughly, the observable fractals on a chart by using volume and price, then he always know the three answers.
Imagine what it is like knowing on many fractal levels, concurrently, just where you are on each fractal. This is a special place. It is extremely enabling from the perspective of trading. If a person can become skilled enough to annotate thorouoghly the volume and price on all the nested observable fractals, he has gained the summit.
What prevents a person from doing this is not obvious. Many here in ET do know how the world works. To some it is obvious that I make use of the deep and abiding cultural principles found throughout the world (See Campbell, for example). I also deploy NLP to deal with the mind aspect of the opportunity to support a learner. In this thread I did one additional thing. I focused on the vedic scope and bounds of life. Probably a few recognized the order switches I made to cut to the chase.
Most people lose, in vedic terms, because of their goals and intentions. that will always be the nature of trading. there are very few cultures that have gabling in their nature. It is a hard lesson to learn for most and they never learn it.
One reason I admire and respect Doji and her thread is that Donna does not wish to slip into the gambling modus to become expert at trading. I have only seen one person discover, independently the pattern here in ET. He described it in terms of colors of bars for one of the two renditions of the pattern. He could not see the opposite color sequence of the same pattern and he could not recognize, as Pring cannot, that trends overlap.
what are the implications in CW trms of succeeding in doing MADA using the pattern.
1. You know the difference between a retrace and a reversal.
2. You know the beginning and ends of all price moves.
3. you know the whole of trading invovles the alternation of retraces and reversals.
4. you know a reversal begins within it's envelope.
5. you know a retrace begins on the left side of it's envelope
6. you know there is no different movement between a reversal followed by a retrace.
7. you always know that a retrace is never followed by a reversal.
8. you know always that a reversal begins a new trend and after the reversal the volatility of the trend is establshed by the retrace.
9. you know that after a trend's volatilty is established, it is immediately tested. there are only two possible results: it succeeds or fails.
10. you know when a volatility test succeeds it is a volatility expansion and the trend continues.
11. you know when a volatility test fails, the end of the trend has occurred and the overlap of the next trend begins (with a reversal).
So my first response to SKO was in vedic terms. If you want to spend a moment listening to the seven aspects of the response in cultural and NLP terms listen to a tape or CD by Deepak Chopra named " The Seven Spiritual Laws of Success". It is a double whanny. You also get to find out why 90% of traders fail. You also get to find out why the detractors here have the attitude and orientation they have.
SKO is going to find out how markets work. He is going to learn to do "looking" for both change and continuation. He will become a partner with the market and "trust" all of its "tells" all of the time.
