Quote from Ezzy:
I have the channels a bit different, and am looking for clarification. They seem to work out ok.
Quote from Spydertrader:
It's how you see the market. You should continue to draw your channels as you see them. Now, if you had an uptrend in place of a tanking market, we might have a problem, but as long as you see the market and the channels (and your Gaussians match those channels), and by doing so, you have the ability to profit, then continue on in the same manner.
- Spydertrader
Quote from Spydertrader:
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2. If you were trading the trees, any point on the 12:10 bar where you recognized PRV volume as decreasing black, tells you the you no longer have continuation down.
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- Spydertrader
Quote from cnms2:
Spydertrader, would you please elaborate on your statement?
The 12:10 decreasing black volume in the red down channel could also mean retracement, hence continuation down, isn't it? Then, the 12:15 black rising volume seems like an indication of the change.
Quote from Spydertrader:
snip . . . I hope my answer provided some clarity, if not please let me know.
- Spydertrader
Quote from Spydertrader:
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Since ivob asked, 'When did we know we had an FTT?' our sufficient data set (in this specific example) becomes Failure of Price to Traverse, followed by, decreasing black volume.
I hope my answer provided some clarity, if not please let me know.
- Spydertrader
Quote from Spydertrader:
Ivob asked the question, with respect to my previous example (Red Channel), 'At what point did we know we had an FTT?'
If one searches for FTT's then a signal for change is the FTT (in this case decreasing Black Volume confirms the FTT). In such an example, increasing Black Volume becomes continuation - but only after the BO. If one searches for Right Trend Line Break Outs (or Point Threes), then the signal for continuation is increasing black volume. In other words, if one doesn't enter until a breach of a RTL, then one needs to see increasing black volume. If one enters off an FTT, then one needs to see decreasing black volume followed by increasing black volume to have continuation (hold).
It all boils down to what level of Resolution a trader chooses to monitor. In the previously posted example, increasing red Volume would have meant continuation (down). If a trader chose to monitor for FTT's, then the signal for change (FTT followed by decreasing Black Volume) differs from a trader who chooses to monitor for RTL Breaks (Price exits the channel with increasing Black Volume).
Since ivob asked, 'When did we know we had an FTT?' our sufficient data set (in this specific example) becomes Failure of Price to Traverse, followed by, decreasing black volume.
I hope my answer provided some clarity, if not please let me know.
- Spydertrader
Quote from ivob:
I find the terms "increasing" and "decreasing" somewhat confusing. In this case decreasing black volume confirms the FTT but I would like to have the term "decreasing" clarified. Decreasing means "becoming less" but compared to what? Becoming less compared to black volume before the FTT or becoming less in the bar(s) after the FTT? (I suppose after the FTT)
"Becoming less" is relative and can also mean black volume is first high (after the FTT) and then on a later moment in the same bar low or lower. Another option is that black volume after the FTT is low and on a later moment even lower. This is also decreasing.
Am I seeing this right?
Also I remark that determining whether something is increasing or decreasing (or stable) requires us to wait because this means comparing volume levels on different moments. One cannot wait too long however.
regards,
Ivo