Tapes build Traverses and Traverses build Channels. Tapes do not build channels. Traverses build channels.
- Spydertrader
- Spydertrader
Iterative Refinement
- Thread starter Spydertrader
- Start date
Some thoughts on how to avoid reversing too early.
(As I prepared this, I was falling behind on annotating the last few bars, so anything after about 14:00 is incomplete.)
Hopefully my MADA is appropriate as presented on the chart.
Edit: I also neglected to annotate the steeper pink down Traverse whose P3 is on Bar 52 (13:50 EST EOB). I'm reposting the chart with the corrected annotation.
(As I prepared this, I was falling behind on annotating the last few bars, so anything after about 14:00 is incomplete.)
Hopefully my MADA is appropriate as presented on the chart.
Edit: I also neglected to annotate the steeper pink down Traverse whose P3 is on Bar 52 (13:50 EST EOB). I'm reposting the chart with the corrected annotation.
What I was trying to communicate is:
- the first four bars this morning widened yesterday's 'chubby' tape to the size of the traverse
- after the price BO the RTL of that traverse it started building the up traverse in the opposite direction
- when the retrace of this up traverse presented itself in the form of pt3 down formation (1005 eob - 1025 eob) one can call this retrace a down traverse
- and since channels are built from traverses, one can call the entire up price movement, which started 0955 eob, a CHANNEL
No such formation exists.
The area to which you refer is nothing more than Price moving from Point Two to Point Three. Price does so within Tapes. These Tapes do not create a down Traverse. Therefore, you can call it anything you want to. Call it a goat if you like, but Price does not create a down Traverse, and as such, Price does not form a channel until much later in the day.
- Spydertrader
Now that the sequences involved in the olive up Channel are complete, we can monitor for an FTT.
Edit 15:38 EST: I neglected to account for the fact that the blue Traverse didn't yet have a Flaw or VE, but Bar 73 indicated continuation up by EOB, so I would be continuing to hold until the next change signal...
Edit 15:38 EST: I neglected to account for the fact that the blue Traverse didn't yet have a Flaw or VE, but Bar 73 indicated continuation up by EOB, so I would be continuing to hold until the next change signal...
