Quote from jbarnby:
I read your text on the down traverse...and I see your point. However, how are we to recognize this in real time? I'm sure we can find numerous examples where this pattern would not qualify as a traverse. What makes this sequence unique?
Since I had not been aware of this situation occurring prior to today, a review of what seem like similar situations and their outcomes would be of interest.
I am fairly certain that my efforts to explain the down traverse of today (9-18-08) will fall short of being informative
, I will attempt to explain my comments none the less.
12:30 bar breaks out of a pennant on IRV.
The :35 bar follows this with a BO of the lateral traverse (thus ending what was considered a "up traverse") and begins the requisite down traverse to complete the proper sequence of the conclusion of the previous lateral traverse as well as develop a channel.
However, the :35 bar breaks out on DRV.
The :40 bar returns to IRV. This completes a volume sequence albeit not very convincingly.
The :45 bar creates an IBGS on DRV and is followed by the :50 bar that again has IRV. Volume sequence is completed again.
The :55 bar is another IBGS on DRV which is followed by the 13:00 bar which also has DRV but a close outside the range of the previous bar. Flag is raised as this is a traverse level signal of change.
The :05 bar is a inside bar with IBV, which is also a Traverse level signal of change.
The :10 bar confirms the traverse level signal of change with IBV and Price moving up sharply, and up we go.
This period 12:30 to 13:05 is or was for me, difficult to determine because the non dominant movement wasn't in one of the three forms we normally see it form (pennant, price retrace or lateral), but volume did however, create troughs throughout this period which were finally followed by traverse level signals of change.
My hope is that this explanation will be met with the approval of those who know, however, I do stand ready to be publicly flogged and humiliated for its inaccuracies
