Quote from Vista:
I guess what I am asking is, what are the exact mechanics of the FTT? Maybe I missed it.
FTT's
only occur when price fails to reach the
left trend line (top line in up trend, bottom line in down trend). Once you have an FTT, only three possible end effects can result:
1. Another FTT
2. an FBO
3. A BO
Anything else that your mind can create is not an FTT. In the beginning, a trader will (quite frequently)
think he / she sees an FTT, when in reality, they see something else. We call these price actions (which look like an FTT at first)
flaws. Some flaws include: Hitch, Dip, Stall, HVS, CCC etc. For now, do not worry about locating the flaws, nor concern yourself with their different characteristics. For beginners, Each Flaw requires the same action -
hold. If you find yourself in a position where you have already taken action because you thought you had an FTT, only minutes later to realize you had a flaw, simply reverse and place yourself back on the right side of the market.
In the beginning, one needs to observe market price action and look for FTT's while drawing channels. In the beginning, you should
not push buttons on the simulator. In the beginning, one should simply learn how the price action operates.
Think of the observation and channel drawing stage as building a foundation to a house. You'd never start adding walls before you finished building the basement. Same here. Jump ahead too fast in a rush to make it to the next stage, and one can expect the house to fall apart.
Good Journey to you.
- Spydertrader
