Quote from icarus618:
Do you believe the market must conform to your or anyone else's idea of what each and every 5 minute bar should do?
I've thought a bit about the above question, and it
appears as if some might confuse, "What
must come next?" with an expectation of what the next bar will
do in terms of Open, High, Low, Close and Volume. When, in fact, WMCN refers to what the
market must show the trader in terms of the
sequences which unfold from Point One, to Point Two, to Point Three and beyond - into the channel / traverse.
For example, if the market has created a Lateral Formation moving Price from Point Two to Point Three of a retrace, this Lateral Formation can continue for as many
bars as the market sees fit. A trader (again, focused on the 5 minutes ES Traverse level trading fractal) does not use a finer set of tools to trade
within the Lateral Formation, nor does a trader
predict how the
next bar in the series will form.
However, the trader does
know what
must come next once the market reaches Point Three. In addition, the trader
knows (again on the 5 minute ES Traverse Level trading fractal) that
every bar within the Lateral Formation represents
continuation, and
cannot provide a signal for change.
Where most traders err involves a failure to differentiate between the above description, and something
not described above. In other words, a trader
believes they have compared apples to apples, when the reality is, they have compared apples to automotive parts. For example, today's ES 14:05 [close of] Bar and ES [14:20 [close of] Bar appear to have the
exact same signal for change described in the Jokari Window. Yet clearly, the market appears to respond to one signal, while ignoring the other. A trader who fails to see a difference in these two areas (as I have said
many times) has missed a critical component of monitoring.
Make no mistake. The market speaks on each and every bar.
- Spydertrader
