Quote from Spydertrader:
Assuming today's trading ended at 11:00 AM this morning (Eastern Time), the market provided three crystal clear signals - enter, reverse and exit. Today's quiz: Post the signals, when they occurred, why they occurred, and whether or not you followed them.
- Spydertrader
The following assumes FTT=>FTT/FBO/BO framework.
I have been working on this post since yesterday and most of the observations are obvious for all who has been at it for a while, but hopefully this will be useful to those who are just starting, as I am.
I made this analysis, which is totally incorrect:
http://www.elitetrader.com/vb/showthread.php?s=&postid=1895329#post1895329
My second attempt was also incorrect:
http://www.elitetrader.com/vb/showthread.php?s=&postid=1895395#post1895395
Spydertrader noted my mistaken approach to drawing channels:
Quote from Spydertrader:
How do you have a channel where you have marked your first grey down channel of the day?
and
Quote from Spydertrader:
⦠why do you have a channel (Points One two and Three labelled across a minimum of three bars) annotated? You may have subsequently described this area as a 'tape' but it is not labelled (nor annotated) as such. A tape uses two bars for three of the points - differenciated from the 'chubby tape' by Points One and Two on bar One while Point Three falls two bars later.
Specifically the first tape of the day is not a channel. Itâs a âchubbyâ tape where pt1 and pt2 located on the same bar and subsequent pt3 comes one or two bar later.
And it wasnât even annotated correctly:
Quote from Spydertrader:
I specifically pointed you to the grey down channel at the beginning of the day. You have a Point Two labeled where Price touches no trend line.
Then I drew some more incorrect pictures
http://www.elitetrader.com/vb/showthread.php?s=&postid=1895431#post1895431
And Avi 8 was patient enough with my sloppy missing the true color of bar 6:
http://www.elitetrader.com/vb/showthread.php?s=&postid=1895447#post1895447
After looking at yesterdayâs morning chart for a very long time I failed to see any possible way to draw a pt3
channel using any or all of the first 7 bars of the day.
A chubby tape with pt1 and pt2 residing on bar 2 and pt3 on bar 4 is possible to draw and is shown in the attachment ( hopefully annotated correctly this time. Thanks to LostTrader and his indicators I am beginning find my way through colors). That tape has an FTT on it, but
Quote from Spydertrader:
Does tape = channel?
And thatâs what really important.
In other words, what happened as I should have seen it (if my annotating wasnât so sloppy) is:
Bar1: VE of the previous day CO channel
Bar2: FTT of the previous day CO channel and pt3 of the new down channel (channel overlap)
Bar3: traverse continues towards the pt2 of the new
channel (not to be confused with the chubby tape)
Bar4: pt3 and FTT of the chubby tape, possible suspect for pt2 of the new
channel
Bar5: chubby tape BO on decreased volume
No increasing red volume arrived until bar 8 (outside bar and IBGS).
Quote from Spydertrader:
The outside Bar was once increasing red before it became an outside bar and ended increasing black.
The sequence that started with FTT on bar 2 which became pt1 of the new
channel, had to be followed by pt2 , pt3 and VE/FTT or FTT before the price could move any higher.
Therefore if one had entered short on bar 2 (FTT) one could not have reversed long until an FTT in the opposite direction, which can only come after pt3. (that assumes FTT=>FTT/FBO/BO rules apply)
Thank you Spydertrader and Avi 8 for your patience and support. I feel like somebody whacked me on the side of my head, cause I browsed through couple of weeks of old charts and this thing just keeps cycling: 1,2,3, FTT. I read it multiple times and sort of understood, but I think I finally got it.
Now I have to work on my Gaussians and those nasty outside IBGS bars when they are one of the critical points:1,2,3 or FTT.
