Quote from Spydertrader:
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
This one's too easy. pt1 to pt2, no pt3 yet - no permission to seek change signal.