- Can we convert "is faster information" into "takes precedence" ? or I miss what you say ?
- When you say the form sentiment (lets say we talk about a 2 PCs combo so 3 bars most of time), what do you mean ?
-> the sentiment described by the gap between the open of 1st bar and the close of 3rd bar, whatever the form it describes ?
-> the nature of the slope(s) described by the form (short/long) ?
-> something else ?
- and to finish, let's separate your "what path price "must"' be taken, in order to discover OOE" in two parts and clarify the intermmediate one. To study what price path must be taken...for what ? I mean, when you say price path, immediately I see :
View attachment 198324
Or enlarged :
View attachment 198325
Could you please clarify or maybe simply reformulate and develop a bit with your words what you mean here ?
I feel there's something decisive in what you say. Thank you very much for your contribution
I can try, though just my current theoretical understanding working on the material. You can say precedence, though it's really about information flowing earlier into the TF. Silly example: MAX(2) will have a lag of 2 bars until effect is guaranteed. MAX(4) will have a lag of 4 bars. Thus not suitable for bar-bar analysis. Following earlier information, means you read the newest information into the context of precise annotation that you build. Close is fastest information everything left of it. At next bar, Close becomes immutable fact for previous bar.
OHLC-data point to the breadcrumb trail price has taken within a given "packet of time". When one OHLC-data is completely within another packet of OHLC-data next to it, either to right or left, there is an opportunity to simplify analysis by not differentiating too much (IB, OB). Such bars may be "squished" or not, then you use the first open and last close and combine the HL. We use OHLC as the data is conveniently available. If one need faster information, you could just get the faster TF data, but that's not the main point of JH. You may need to deal with these bars for trading anyway, but for annotation you need to use RDBMS understanding to differentiate what is different. If squishing helps, you may use it, I haven't found uses yet but such needs consideration and differentiation. At difficult times in trading, squishing will provide context of larger direction where unclarity ruled.
C-O would be bar sentiment, indicating the 2nd HL leg (D).
Simplest price form is 1 PC. 2 cases makes money. Some cases change price significantly enough to follow, ie. together with BO, T1 and BM Rev. Money making forms are good excuses to immediately without context start BM and RTL.
What will make most sense for bar #3 need to be decided. Maybe Lat 3 form IV or DV, etc. Could be BO, T1. Could even be PP!
Nature of slope should follow from price path.
Q: What came first, slope or price path?
I think for slope, you need D nd D in this methodology.
Your nice pictures shows possible/easy price paths. In order for BM and slope to make sense, you need to be sure form and price path supports your trend sentiments / annotations. The Pattern is showing d ND d for price, which makes trails you can follow with Bm and TL. When following price with failsafes (BM+rtl or just straight lines), you get an understanding how price should be annotated for VTP/ees to make sense. Not to interfere with your current work, but you could try just annotating RTL, see how just doing that flows. What happens if you vary rules for fanning, or if you don't fan. At start of RTL is always BM. ltl may also be used, but there are actually more uses for BM+RTL in RDBMS. Just RTL will be like using just trend lines, a most simple undertaking.
That you are finding more and more nuances, is differentiation. Though, what you find is to be made applicable in robust ways that provides comfort and stability of perception. I think it makes sense to follow price until you master it, though trading just following price leads to DD so
more is required. RTL is a way to follow price and is horizontal at first (BM), indicating sentiment change without visible follow-through in the breadcrumbs trail.
Failsafes will follow straight lines and are guardrails for when doing VTP. To be most effective, they need to follow the "flow".
. I need a long night sleeping and I'll see that tomorrow.^^ 