I will direct this question to Ezzy, since I mentioned last night to him that I wanted to ask something, but anyone so inclined is of course welcome to respond.
As an example, let's say price is in a dominant upchannel, and an apparent FTT is presented. It is my understanding that we then look for the following: first we want to see decreasing red volume, then increasing red volume as price pushes below the rtl of the up channel. Once price reverses and begins to retrace, we want decreasing black volume as we anticipate a new pt 3 down channel to be created. This is the sequence I believed to have happened in the two previous chart examples I attached earlier for 05/03 and 05/04. But after debriefing, it seems that I am mixing up the resolutions, and I am taking the signal off of smaller R2R's and a break of the dom traverse tape.
Today, I took this signal again, this time coming from the YM chart, but taking the trade in the ES. Once again, the R\/R happened in only two bars time, and I entered at what I felt was a logical place after seeing decreasing black volume as price was retracing. It resulted in a pretty fair entry on ES, 3 ticks below the extreme of the 'tree' pt 3. (ES chart not shown)
When looking at the attached YM chart, can you tell me if this is considered a tree/limb resolution? My problem is, when trying to utilize this approach on the forest level, it often seems that by the time the R2R is annotated, a large percentage of the move has already transpired. I have added what I feel is the forest R2R as well here.
I'm sorry for this very poor description of what I am trying to get at - too tired to think straight at this point. But maybe someone can discern what I am confused about here. Thanks for reading ...
