Question regarding PA

[Sprout]

Yep, I have another thing I am trying to understand, see chart attached please.

Do you know the difference between tapes, traverses and channels? Your illustration shows a short traverse fanning into two larger short channels with incomplete long annotations.

Channels are built from traverses which are built from tapes which are built from 2 bar combinations.

Clarity will come as you do complete annotations and explore the price/volume relationship. Current Volume (or lack of anticipated volume) will support discerning the difference between your posted examples.

Generally, if increased volume doesn't support the BO, it will fail. This is due to the tape/traverse/channel one is observing is a non-Dominant move in a larger Dominant context. The failure though is observed on the larger Dominant context as a new fanned Channel pt3.

There are exceptions but it's better to understand the basics before the nuances.

 

[wrbtrader]

Yep, I have another thing I am trying to understand, see chart attached please.

Seems like your earlier charts in this thread contained volume including a statement by you that you...I do not see something remarkable in the volume levels.

Now in your most recent charts, you've completely removed volume from your charts.

I'm a big fan that when showing charts online...best to show the entire chart for the full context instead of clipping out a small area in the chart. Sometimes you get lost in the small in comparison to the bigger picture.

P.S. This forum allows multiple image uploads in one message post just in case you did that to try to save space.

 

[Metamega]

I personally saw volatility contraction( tight bars after a bigger move). It’s one of the many variations of pullbacks that I’ve had success which swing trading.

 

[tomorton]

In this example, correct interpretation of volume pointed towards a trade opportunity, and I'm not going to criticise that.

But just a point to bear in mind that the tool used in market manipulation is volume. So though it worked well here, it will sometimes be dramatically wrong.

What's hard to understand is why anyone would want to trade out of such a vague pattern.

 

[PAAddict]

Do you know the difference between tapes, traverses and channels? .

Thanks, I looked into what you are talking about and found this:: http://www.traderslaboratory.com/fo...6320-price-volume-relationship.html#post70030

Will give it a read.

And thanks for the reply

 

[PAAddict]

Seems like your earlier charts in this thread contained volume including a statement by you that you...I do not see something remarkable in the volume levels.

Now in your most recent charts, you've completely removed volume from your charts.

I'm a big fan that when showing charts online...best to show the entire chart for the full context instead of clipping out a small area in the chart. Sometimes you get lost in the small in comparison to the bigger picture.

P.S. This forum allows multiple image uploads in one message post just in case you did that to try to save space.

Thanks, yes it was a matter of space, I did not want to clutter the screen with lots of charts. Next time I will use the multiple charts choice.

 

[PAAddict]

In this example, correct interpretation of volume pointed towards a trade opportunity, and I'm not going to criticise that.

But just a point to bear in mind that the tool used in market manipulation is volume. So though it worked well here, it will sometimes be dramatically wrong.

What's hard to understand is why anyone would want to trade out of such a vague pattern.

Thanks, not looking for trades here, just trying to understand behavior I am not familiar with.

 

[PAAddict]

I personally saw volatility contraction( tight bars after a bigger move). It’s one of the many variations of pullbacks that I’ve had success which swing trading.

Thanks. Will look into that.

 

[PAAddict]

My trades and analysis are based on multiple time frames. It may be that on a higher tf, these "breakout" attempts are but complex corrections in larger trends.

Thanks, will look into that!

 

[Sprout]

Thanks, I looked into what you are talking about and found this:: http://www.traderslaboratory.com/fo...6320-price-volume-relationship.html#post70030

Will give it a read.

And thanks for the reply

You're welcome. That is a very good thread. I haven't made it through the entire thing myself yet but everything Spydertrader presents there has made a positive difference in my trading (once throughly grasped and understood).

He's posted some amazing threads here as well.

If you post a annotated chart with tapes/traverses/channels, folks grounded in this methodology can get you up to speed quickly.