Can you explain with visual example what R2B and B2R and gaussian means. I've tried reading up on it previously (based on the old posts from Jack Herhsey) but could not fully understand it
Quote from makosgu:
For a while I didn't understand the concept until I realized PV and also had to relax a bit as far as observing is concerned. So with channels, you see that the channel is the geometric context for where price is operating. The Volume is the gas pedal so to speak of price operating within the container. In a channel you will see price bounce from one side to the other until it stops. When you look at volume you will see that in one particular direction of the bounce from one side of the channel to the opposite side, each consecutive volume bar will be more or less larger than the previous bar. On the bounce back, the volume bars will have a general decreasing progression. You will have to look somewhat loosely because as you will notice, the migration from one side to the other is riddled with stalled/inside bars. They are easy to pick off because you will see that the volume does not follow the progression and additionally the price bar will not extend beyond either side of the previous price bar.
The framework of the gaussians is that every channel has the dominant where the progression of sequentially increasing volume bars denote the dominant direction of the channel. The sequentially decreasing volume bars are the retrace. Thus a R2B means INCREASING RED VOLUME bars followed by DECREASING BLACK VOLUME BARS. A B2R is INCREASING BLACK VOLUME bars followed by DECREASING RED VOLUME bars. A LONG channel is a repeating sequential series of B2Rs whereas a SHORT channel is a repeating sequential series of R2Bs. The transition between a SHORT and LONG channel is immediately picked off by B2B where you have DECREASING BLACK VOLUME bars followed by INCREASING BLACK VOLUME bars or an R2R where you have DECREASING RED VOLUME bars followed by INCREASING RED VOLUME bars...
Kind Regards,
MAK!
