Did anyone get a correct reply about what Spyder was refering to here? My vote was the completion of the pt2 to pt3 non-dominant traverse to establish the carryover down channel from the day before. Was the correct spot to annotate the pt2 on the first bar of the day 12-12-08? Or should it be annotated on the prior day at 15:40?
Iterative Refinement
- Thread starter Spydertrader
- Start date
Did anyone get a correct reply about what Spyder was refering to here? My vote was the completion of the pt2 to pt3 non-dominant traverse to establish the carryover down channel from the day before. Was the correct spot to annotate the pt2 on the first bar of the day 12-12-08? Or should it be annotated on the prior day at 15:40?
Nice job, great graphics. After looking at your work I'm thinking about the significance of the first bar of the day. It opens and heads lower on increasing red volume, confirming the pt3 on the last bar from the previous day, then however, price reverses, creates a IBGS (signal for change) and closes higher on increasing (now dominant) volume. Bar two heads higher on increasing black volume confirming dominant direction (on this fractal). Then bar three and four show decreasing non-dominant volume with lateral movement. Exactly what would be expected for a retrace. Bar six confirms dominance with a breakout of the lateral on increasing black black volume. What da ya think?
Before the market can create the next sequence, the market must complete the current sequence. Such a thing remains true for any (and all) fractals. Whether one chooses to define their trading fractal as a Tape, Faster Fractal Traverse, Traverse, Channel, Super-Channel (or even if one wishes to call their trading fractal a goat), the market must always complete one thing before beginning another. On Thursday, the market had not signalled the completion of one thing. Therefore, the market could not begin another thing, until such time it had completed that which had already existed.
No need to guess at what the market has indicated. In a binary system, only two possible choices ever exist. Since these two states cannot exist simultaneously, one need only determine which of the two states exist - according to that which the market has determined represents the correct viewpoint. If a trader does not know the right side of the market, with respect to the appropriate trading resolution, then one simply waits (while monitoring) until the market provides enough information (based on the trader's current experience level) which meets (or exceeds) the trader's current threshold for knowing. Understand, the market always provides the accurate and appropriate information required of the trader to know wmcn. The trader then must first learn to see, then learn to see faster, and finally, learn to anticipate the arrival of the information. Only through skill acquisition and experience does a trader transition through these stages.
I encourage you to use an annotation convention which includes the use of generic terms and vocabulary for describing the market when not refering to a specific trading resolution, and adopting the use of specific descriptors when refering to a specific resolution level. For example, trend line represents a set of vocabulary words which refer to the containment of Price within a trend. Whereas, channel refers to a very specific set of criteria. Following this advice reinforces the brains ability to differentiate that which one believes they see, from that which, actualy exists. Remember, a trader arrives at success through the process of developing a diferentiated mind.
Your chart fails to provide a thorough view of this area - starting the day before through step 5 on your attached chart. By creating thorough annotations, in time, one begins to differentiate between thorough and correct vs thorough and incorrect. In this specific example, the added (missing) annotations may (or may not) assist your understanding from the viewoint of your conscious mind (again in this specific case), but will no doubt aid your ability to differentiate in the future.
The market fails to continue, and in a binary system, that can only mean one thing.
You've accurately described one scenario when the market moves from Point One to Point Two, but not the only scenario. Something else (something you do not currently see) provides the information which results in the scenario you describe. In other words, your description represents the manifestation of the markets actions and not the reasons behind the actions.
HTH.
- Spydertrader
gooch87,
imo, the last bar of the day 12/11 confirms your pt 3 of the non-dom fft. So to start the next day we should be looking for more inc black. Spyder has said(i don't have the link) that the first bar of the day should be considered non-dom and the market is still not in sync so a trader should still be thinking continuation. the 2nd bar has increasing black confirming that we are in a pt3 non dom tape(cont)...then 2 inside bar(cont)...then breakout on inc black(cont)....then more inc black(cont)..then dec black(change for agressive trader)...then ibgs(change for less agressive trader) and your dom pt 3 of the fft that began the day before.