thank you MR black 
Iterative Refinement
- Thread starter Spydertrader
- Start date
Three More Levels of Trends (Tapes, Traverses and Channel). However, this time we see a different example of how the same sequences of Point One to Point Two to Point Three - Lateral Formation. Note how the Lateral formation (a left to right Traverse [when combined with the Green Up Traverses]) forms the blue up channel. Knowing this, what can we expect from the current (12:40 Eastern Time [close of] ES) Price formations?
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1962194>
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1962194>
The first dominant traverse of the red down trend was 'chubby' tape, the second dominant traverse was pink pt3 channel.
The opposite trend - blue up channel, was built from: first dominant traverse was green 'chubby' tape, the second dominant traverse was pt3 green up channel.
The newly developing downtrend started with orange 'chubby' tape. We expect it to be built in the same fashion: second dominant traverse would be a pt3 down channel.
Kinda like that right there? (1:35PM EST)
I am starting to get pretty good at it too!
Once again, we have a Dominant Traverse (pink down) formed by a down tape, and Lateral movement. As a result, the market creates a wider down channel (red) which creates a need for a non-dominant Traverse. Since Price finds itself so close to a Channel RTL, we monitor for the clues which tell us what must come next. Do we see a Break Out on increasing Volume? Do we see a channel FBO? Do we see Lateral Movement? Do we see a flaw? Do we see a Formation FBO? Lastly (and as always), what does the YM say?
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1962336>
Note how the blue up Channel forms. First, we see up, down, up tapes create the traverse. Second we have a Lateral formation create the Left to Right Traverse. What do we know must then come next? Another Up Traverse. What did the market create?
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1962336>
Note how the blue up Channel forms. First, we see up, down, up tapes create the traverse. Second we have a Lateral formation create the Left to Right Traverse. What do we know must then come next? Another Up Traverse. What did the market create?
Down Tape (14:10 & 14:15 [close of] ES Bars) followed by Lateral Formation (Sym Pennant 14:15 & 14:20 [close of] ES Bars) forms a down Traverse. Next, Price breaks out on, not only, increasing Volume, but also Peak Volume (14:25 [close of] ES Bar). In addition, the YM (14:24 [close of] bar) also shows Peak Volume, while at the same time, showing increased Volume, but decreased Price Volatility. How many signals for change? What must come next? What did the market deliver?
All Times Eastern.
- Spydertrader
All Times Eastern.
- Spydertrader