thanks for the schematics, Jay (ehorn)....
Here is the basic pattern as given to Michael Covel as a gift last week.
Your reactions to my comments are typical of a person who trades in a conventional wisdom atmosphere.
Just relax and look at the 9 or 10 bars over a 45 to 50 minute period.
I will show the 8 year old trading the pattern in the next illustration.
Remember that she is trading P's and T's on volume and she is trading the three moves of the pattern in price that corresponds to the volume signals.
As you see price begins a reversal first and goes through BO as volume first declines and then increases as it shift to dominant.
Next, at point 2 a reversal takes place (a reversal is an exit immediately followed by an entry in the opposite direction) just as the retrace of the trend begins.
The retrace ends at point 3 on a trough of non dominant volume and so the 8 year old reverses again to go dominant all the way to the end of the trend at a volume peak.
8 year olds would love doing this. they are trading on sentiment for price and P's and T for volume. There is a PRV indicator showing all the time. As you saw on one of Jay's (ehorn's) illustrations the Pepe stalagtites are always showing the walls of the Dom to the immediate right of the forming price bar. Walls are where turns occur and most of the time traders pull limit orders to dissolve the wall ahead of the price movement. there is one exceptioin. they do not pull enough contracts at the points I label as trading points for the 8 year old.
soon the 8 year old will have enough time to look at about 7 (count them) leading indicators of the turns at the labelled points.
Put you gun away and just give yourself one chance of a lifetime to think about an 8 year old dooing each of these clear and concise trades in the pattern.
there is only one pattern. jusT because your mind cannot percieve it as yet does not mean you cannot grow mentally to be able to see it in the future.
