Not so bad a trip back to the 'M' phase now was it.
- Spydertrader
Iterative Refinement
- Thread starter Spydertrader
- Start date
Not so bad a trip back to the 'M' phase now was it.
- Spydertrader
Notice how Spydertrader's light blue (aqua) line is thicker than the dark blue line. I interpret the relative thickness of his lines to indicate that he, too, sees the light blue (aqua) lines as a Channel and the dark blue lines as a Traverse.
The dark blue Traverse is formed by Tapes, not Traverses, whereas the light blue (aqua) Channel is formed by a dark blue up Traverse, followed by a pink down Traverse, followed by another dark blue up Traverse.
Actually, you both have a correct interpretation - depending on the point in time you choose to evaluate the sequences. What started as a Traverse (built by tapes) widened itself out to the size of a channel. At this point, the market built traverses enabling Price to make its way back and forth on Dominant and Non-Dominant Traverses. At the end of the day, the life of this particluar channel ended with the formation of the Pink Down traverse.
For clarity sake, the Blue Point Three began as a Traverse, became a channel, then 'fanned' out to form the Aqua Channel.
- Spydertrader
Hi Spyder
No action on 12:05 (open time) bar? Looks like an FTT.
I have a question the answer to which I think will help me along and maybe others too. Please see the attachment. I can see the differences in your annotations to mine (principally starting a new channel whereas I fanned as the TL was broken on decreasing red volume) but I am not sure why mine are "wrong". Should I resist the urge to fan and instead look for the next 1,2,3 channel ASAP?
You are correct. But the Spydertrader's light blue (aqua) line was created after 1420 eob. Before that blue channel was being built from traverses.
If that was true, the light blue (aqua) Channel would need to have as non-dominant traverse not the pink down Traverse, but another channel built from traverses - pt3 formations.
In other words take a look at how the day progressed beginning with 1045 eob when we have pt3 up formation.
- the tape widened our pt3 formation to the size of the channel and created VE 1110 eob
- now we need another tape, non-dominant traverse to take price back to RTL so it can reverse and return back to channel
- it does that and price returns into the channel creating another dominant traverse this time it's pt3 formation
- 1225 creates that pt3 up formation traverse and regardless of whether or not it will create VE or FTT of the CHANNEL we know that price will return back to RTL by means of yet another pt3 formation.
- 1305 ends our dominant traverse also failing to reach CHANNEL's LTL
- what must come next in the sequence is another pt3 formation taking price back to RTL and BO/FBO
- that's your pink traverse pt3 down formation
- we end up with FBO of the BLUE CHANNEL and as such must fan outward
- fanning outward (decellerating) creates the light blue (aqua) Channel
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EDIT: while I was typing it up, Spydertrader answered the question
Hi P1, I know you addressed Spyder, but I thought I would share my view. I also fanned (but from a different point). For me though it had little effect on the MADA as the day unfolded. The area in question (FTT bar), you have as a RED bar. But the correct coloring should be black, and also I perceived that area to be lateral movement PT2-PT3. But I do see that the fanned channel you chose was respected later as price approached it.
EDIT: Sorry grabbed the wrong image. Updated.