Can I just say !%$#^#@#$@?!
So much information with jargons all over the place.
Anyway, I have a lot of questions and I would really appreciate some help with them.
First thing, inside bars. In a 2 bar sequence, when the second bar's H&L is inside the 1st bar's H&L, and the volume of the second bar is lower than the first bar, we "ignore or wait" for a third bar and do not measure the second bar's volume. Is that correct?
Yes, wait.
What about if 2nd bar has a bigger volume despite being an inside bar (These seem rare unless it's inside a lateral)?
That's what Use Larger means. Any 2nd or 3rd bar of forming lateral currently suppressed that develops larger volume than bar1 of the lateral gets measured. UL is functional with the the first two inside bars. If bar3 signals lateral, then 'no wait' after bar3 and every bar gets measured until end of lateral.
Second, P1s are all ending events/ FTTs. Is that correct?
No. There are some End Events that are assigned a P1 on that bar, others have P1 assigned on the next assignable bar.
Essentially, we are looking for P1s to enter for a new trend?
Yes and some times the direction is confusing until T1 is established. Learning the method and trading simultaneously is ill-advised.
Fail safes. I understand that fail safe is sort of stop-loss point for JHM. We have two types of events that activate fail safes I believe? I just don't get it though. What does "Do P1 on bar of failsafe EE's and A band EE's" mean?
A failsafe is a mechanism to signal a rapid change in sentiment. The first failsafe is a Bookmark. It's placed at the low or high of a bar opposite the direction of price movement. So in this case it works like a support line. If price translates through the BM, then one KNOWS they are on the wrong side of the market. The same thing with a BO, T1. Price translates through a RTL established by a T1 (or appropriate endpoint of P1). One KNOWS they are on the wrong side of the market when this happens.
So when price translates across the boundary defined by a Bookmark or a RTL, then we know that is a Dominant traverse. Being that it's a Dominant traverse, then price is in M1 as price moves from pt1 to pt2 of the newly forming channel. M1 is b2b or r2r. Decr volume (as price is translating in the previous channel) 2 (as it XO the RTL) Incr volume (as price is now translating in a new channel).
An assigned P1 is used on bar's that are ID'd as activated Failsafes. It starts monitoring the development of a trend, whether it's the best place or not to enter a trade requires understanding the trading logic overlay. The trading logic overlay is a different skillset than just learning to read, annotate, log and debrief the market.
It describes two fail safe bands.
1)BO T1 - Does this mean break of RTL on trough (i.e. decreasing volume)? We draw a new RTL along this event? How do we use this information? Wouldn't we have a P1 and are developing T1 at this point?
Yes, on any volume as well as yes on drawing a new TL. We now have the start of a new trend segment. Whether that trend segment blossoms into a larger and longer trend will uphold or refute this new TL starting with a tape.
2)BM REV - Bookmark reversal? Where does this apply? When we have FBOs?
Yes. Whenever price goes against it. There's a difference between when price penetrates the boundary vs closing beyond the boundary. A FBO would be a repeating B-turn of a trend and after a pt3.
As a drill, go through annotating a chart just with BM'Revs and BO,T1's. One just needs to place Bookmarks and draw Trendlines. When either's boundaries are crossed, then there is a BM or RTL required in the opposite direction.
The idea is to build containers of price using these just these tools. A good place to start is placing BM's at swing highs and lows - also whenever a trendline is respected. Be more liberal than stingy with them and overtime one can find the right balance of using them. They are placed at EE's but that is a little further down the road.
I have many more questions but I don't want to overwhelm anyone in one post lol.
TIA
