Iterative Refinement

Quote from Spydertrader:

Discounting the 'chubby tape' for a moment, we have three ways to draw our 'trends': A Tape, A Traverse and A Channel. Tapes build Traverses and Traverses Build Chanels. How many 'tapes' do you need to know you have a Traverse? How many traverses do you need to know you have a channel?

As Price moves lower in this segment, we break two Right trend lines - one from a traverse and the other from a channel. As such, we now know that both trends have ended (traverse [short term] and channel [loger term]). Since we also know how may traverses we need to create channels, we can see that the market has yet to build the necessary traverses required for our chanel. When Price breaks the RTL's on increasing red Volume, we have our dominant traverse in place. We now need a non-dominant traverse to meet our requirements for a channel. Only two ways exist for such a thing to develop.



Again, once we have our channel in place, and Price moves enough to significantly widen our channel, we know we have to build another dominant traverse before we can build another non-dominant traverse to take us back to the RTL of the channel.

How do we know this?

We had just ended a non-dominant LTR Traverse (Lateral Movement). What must follow non-dominant? Of course, dominant. If you were already searching for an FTT at this point then you 'switched fractals' and chose to monitor on the 'channel' level rather than the 'traverse level' for change.

The above is what we used to call trading at the forest level vs. the trees. Clearly, change signals developed throughout the 2.5 hour run down. However, one must then filter (using context) to determine if the signal for change applies to them or not.

HTH

- Spydertrader
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After reading this I feel quite lost. When did the idea of a traverse being different from a channel crop up? From everything I have read so far, a traverse is a pt3 channel of yet another larger channel. Is that what you mean? Or did I miss something along the way?
 
Quote from gravitonium77:

From everything I have read so far, a traverse is a pt3 channel of yet another larger channel. Is that what you mean?
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Correct.

Just as letters build words, and words build sentences, so too, do tapes build traverses and traverses build channels.

- Spydertrader
 
Quote from Spydertrader:

Correct.

Just as letters build words, and words build sentences, so too, do tapes build traverses and traverses build channels.

- Spydertrader
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Just like right now the larger up channel is built from two channels both ending with DT/DB FTT's. So when trend will change after this FTT (IBGS) 1225 {close of}, the down channel will have to be built from two channels as well?
 
Quote from romanus:

Just like right now the larger up channel is built from two channels both ending with DT/DB FTT's. So when trend will change after this FTT (IBGS) 1225 {close of}, the down channel will have to be built from two channels as well?
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Correct.

FYI. bundlemaker described this very thing in his video. None of this stuff is new.

- Spydertrader
 
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1945231>

Final Traverse left in place for educational purposes.

Edit: Please see the YM 12:32 [close of] bar for why we expected Increasing Volume on the 12:35 [close of] ES bar.
 

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Quote from Spydertrader:

So we just witnessed Point Three down followed by Lateral Movement, followed by another Point Three down. Sound familiar?

- Spydertrader
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Waiting for a flaw or VE
:D This is like deja vu all over again.
 
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