Quote from SnakeEYE:
Question regarding rule #4.
Jack wrote:
"Everyone of the 8 deal with volume except 4."
Could anyone please explain?
Sure many many people culd explain.
4. is an annotation assigned to price as a reminder that the OOE of the single pattern that exists can be broken and the two moves have to be folded into the prior pattern.
In reality, you may be asking about what you do not know about how volume leads price at times when it is important to know (the seven times listed).
Below are all of those answers. Check them off one by one and find out if you are capable of understanding them of even using them. (Do a handicap check off).
1. Annotating volume is done because volume leads price. For the pattern annotating you note the slopes of volume leading to the peaks and troughs associated with the points of the parallelogram and the period of overlap of the old trend and the new trend. There are four volume moves for every three price moves. This facet of markets is what causes all the failure you do not read about. See Covel and read all his writings to see he totally omits all of what the 7 points make. He quote endlessly zillions of other people as unaware as he is.
2. FTT's are volume peaks followed by price extremes. To take all of the market's offer you need a leading sidnal of price to be able to carve each turn precisely. You have three fractals showing and they are all P, V annotated. On the trading fractal you use the fast fractal to carve these turns 20 to 40 times a day.
3. Holding and reversing keeps you in the market. volume preceeding price on two of the three fractal;s ius what assures you that you "always know that you know". the mind has to be built for this first however. without a fully differentiated mind, what I have to say is like a foreign language to people in the financial industry and their parasites who make money selling quasi financial information.
5. You will see, after you reverse a surge in volume as volume leads price to a NEW FTT.
6. This is a period of time, as noted in three parts in Behavioral Finance: pre change, change, and post change of volume. This is where most PA only traders get hosed completely. This is the second confirmation of the difference between a retrace and a reversal. Most potential traders who are learning repeated failure, learn at this time of the order of events that they simply do not know what is going on most of the time. (Google bellyaching). Here is where the volume trough occurs on the way from point 1 to point 2 of the parallelogram. pre change is the negative slope to the trough; change is the trough; and post change is the positive slope going from the trough. It all occurs on the BO of the prior RTL and where overlap ends. It is the time to continue to hold to make money. If you had a picture entitled "The Pattern" and used it, you would know all of this and use it in your repitions to build the differentiation of your mind. this is exactly why PA only traders always only trade a few contracts. It is also why they do not have the means, ever to add contracts. (See bighog, etc). There is also the overriding fear factor stemming from the Bohr Syndrome.
7. This is easily recognized in volume as "the PACE change" of volume; the snippet for the volume rainbow of volume is missing from your crappy platform. It also can signal that two more moves of volume are required to get to the FTT. Not accelerating the RTL leaves you stranded or you get stranded by not knowing to start a new parallelogram. Various parts of the rainbow tell you, additionally, which is which.
8. This is just the details of 7. It is very important to know how to annotate acceleratiions and their respective fast fractals (M1 and M2). As I noted elsewhere (and the period of the great wars confirmed in the eras before this one), this depression's last move will have four VE's. You could not understand this, and so you got off one of your stupid stupider wisecracks to prove your mind lacks even the beginning differentiation. It will be a long long time before you can post something (like this post I rattled off) that will help other learners not learning failure.
Let's return to the topic of the thread: your handicaps. Asking about what is going on and how to learn or know that you know is off topic for this thread.