Market System of Operation
https://www.elitetrader.com/et/threads/market-system-of-operation.280654/page-6#post-3917844
I'm getting my butt,...
https://www.elitetrader.com/et/thre...-on-a-daily-basis.275733/page-16#post-3829329
It's easier to illustrate on a log.
Let's use the example of a trend with 4 price bars - P1, T1, T1, P2. First bar is a high volatility bar and can be measured. 2nd and 3rd bar's are IB's with decr vol, therefore "wait" calling forth a Lateral ID. At this declaration (Lat3), there is no longer a wait to measure bars as long as the Lateral is valid.
So at this point in the log, there are three rows, the first row has the P1, the next rows have "wait" in the Event column and a line drawn through the VTP cells. Bar4 as it is an IB to the 1st bar of the Lateral is measurable. The fact that it's the fourth bar AND an IB calls forth "retro". To do retro, you are also doing rev chron. Rev chron is cycling through the volume elements that have already presented themselves in reverse chronological order, looking for a repeat. Consider how PP!'s are built.
On the log, the Event Column gets the position in the Lateral the bar occupies. So in the above case, bar2 gets a "2" in the Event Column and a line strike through the VTP cells. Bar3 gets a "3" in the Event Column and the same strike through line on it's row. Bar4 qualifies as "retro" and one goes back to start at bar2 and measure, then bar3 and measure, now with those two measurements in place, the "retro" bar can get a valid ID. If bar4 is not an IB relative to bar1 then it get's measured but without bar2 and bar3's ID since they are a wait.
In this example if bar4 was a retro and a P2>P1 as true then it's an Ae EE. If bar4 was not a retro then it's ID would be a repeat of P1 and no EE is present.
btw, degapping is required for the above. A tick is a tick and sometimes makes all the difference.
HTH
View attachment 185246
If bar 4 is P2 but held inside P1 then it's like having a smaller fractal with bars 2 and 3 within the lateral boundary?
If bar 4 sticks out like it did here but seems to have shifted gaussian it provides an ending event to the previous trend (traverse)?
I'm not sure if I'm understanding it right. This is the first time hearing anythig about rev chron and retro for me lol