Quote from Spydertrader:
Still no differences?
Quote from icarus618:
On 5m bars:
Q: What is the minimum number of bars needed to draw 2 parallel lines (points 1,2,3)?
A: 2.
Two bars give 4 end points. You use 3 of them to get the lines. There are exceptions to this, which everyone here knows.
When you draw the lines off 2 5m bars, you can bet your ass that is not the "best" channel to operate on. I use the word "best" here from the viewpoint of a beginner whose focus should be on growing his account and building up confidence. Call that channel a traverse. Oftentimes the 2 bars are similar in volatility. The bars that follow will be too. Give this an additional name: a tape. But don't forget, the channel you just drew is a traverse.
Q: What is the minimum number of traverses needed to draw 2 (wider) parallel lines?
A: 2.
Two traverses give 4 end points (one overlaps). You use 3 of them to get the lines. If the second traverse exceeds the extreme of the first, you wait for the next traverse.
This is the "best" channel to operate on. In Spydertrader's examples, this is the red channel. Look for the "best" places to extract from this channel. Again, I'm using "best" here from the perspective of a person looking to grow his account and build confidence.
Quote from Jander:
I see that one has tapes in opposing directions.
Quote from Jander:
Can the leap be made that a traverse must be formed by two tapes that form in opposing directions?
Quote from Jander:
The only difference I can see is that your past chart has traverses (or whatever they are) annotated that do not have a tape in opposing direction.
Quote from Jander:
I thought that a tape in one direction, followed by lateral movement, then increasing volume and another tape in the same direction could form a traverse. Is this correct?
Quote from Ares1:
Based on this definition of a channel, here is my annotation of the 5 minute chart of UYG:
I see a blue uptrending channel within a green uptrending channel into the close.
So far, after hours is showing price within the blue uptrending channel.
There's a bunch of other lines showing in the chart when I zoom in to the 5 minute chart (the lines from the daily annotation are carried over).
I'm trying to figure out how to increase the bars (while trying to capture the bigger picture).
Quote from Ares1:
Based on this definition of a channel, here is my annotation of the 5 minute chart of UYG:
Quote from Spydertrader:
I answered this question in response to PointOne.
Without the formation of traverses, one cannot have a channel, and since no traverses formed prior to the 11:00 AM [close of] ES bar, then we cannot have witnessed a channel form. We can only have a traverse.
Period.
Quote from Spydertrader:
I encourage you to increase bar spacing and set your scale more appropriately, so that others may have an easier time of actually 'seeing' what your charts and annotations say. In addition, using OHLC charts, rather than candle charts should increase the number of responses you receive.
By time the 'golden cross' has occurred, you have already missed much of what your chart (Price and Volume) needs to tell you.
- Spydertrader
Quote from Spydertrader:
I encourage you to review the Channels for Building Wealth document linked from the beginning of this Journal. I also encourage you to review the 'Flaws and Formations' Section of last year's Futures Journal (also linked from page one of this thread). Lastly, I encourage you to stick to one timeframe (daily for equities) for your annotations so your brain can become properly calibrated.
- Spydertrader