So here is my bar by bar run down. I will put up as many as I can permit. I will try to put up complete days (ie. 81 bars). This is the actual mental annotations and reps that I go through. You will find different modus that I have for different bars. PV is the crux of all of it as am calibrating to the cycling surging and withdrawal of volume. The best illustration I liken PV to is that channels are like tides. The tide has a definite direction (ie. towards high, or towards low tide). In between low and high tide, you have the cycling of surging and withdrawing water line (ie. advances toward high or low tide). These are the dominants since the surges directly correspond to the advancing of the front (ie. price).
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1319441>
Given this, here's the step by step as I recalled for friday...
Bar 1...
We have extraordinary volume. On extraordinary volume, price translates pretty well. In other words you do not have your typical meandering back and forth. Instead, the price translation is rather swift. Extraordinary volume with price being below the open from the beginning of the bar, the trend is short. However, I am on alert since the first several minutes out of the gate, I find riddled with directional changes and various 3 bar formations. I did not have the previous days carryover (a NO NO), but I carry on anyway since it does not effect my modus...
Bar 2...
PRV DECReasing volume all through to the end of the bar. Immediately from the get go, the DECReasing PRV volume flags that pt2 is possibly on the table. Simultaneously and instantly I am on gaurd for 2 things, whether or not bar 2 will extend beyond the lo of bar 1 (ie. extension beyond lo is in the dominant direction), or whether it will retrace back up to the hi of bar 1. Initially, it shows signs of extending the lo but stops and finishes up. The point at which it didn't extend the lo, I "KNEW" I had pt 2.
Bar 3...
PRV INCReasing volume...
I am on gaurd and looking for only two things; either it extends beyond the top of bar 2, which would be the end of S1 and beginning of L2, or it ends the retrace and begins the second traverse of the channel. I get the latter... Annotate my pt3 and move forward to the next bar...
Bar 4...
PRV INCReasing volume...
From the get go it is biz as usual but then the bar turns. We started with INCR RED but then the V turns BLACK with INCR volume. What happened here was the end effect of the traverse was within the bar. I know this because I watched the extension of the LO of bar 3 which is what I was expecting since I saw an INCR PRV. However, the extension stops and begins retracing. Without having the benefit of looking elsewhere, I am noting wether the lo of this bar is an FTT for a new channel. I wait and see watching to see if my Bar 5 will show INCR PRV to BO from my RTL.
Bar 5...
DECR PRV...
I wait and checkout whether it extends the top of Bar 4... It doesn't and instead stalls... I know I am still in the retrace.
Bar 6...
INCR PRV...
Dominant occuring. The question is whether the DOMINANT will be BO from the S1 or a 3rd traverse of S1. From the open, it surges towards the LTL. Back in biz...
Bar 7...
This bar actually started with INCR PRV and then migrated to DECR PRV...
From it's open, I am looking to see whether or not it will extend the LTL. From the open, it doesn't extend the lo of bar 6. I am on alert because the pace is extreme which means the bar is likely to have large volatility. I watch and having not acted on the possible bar 6 FTT, my fall back is a XO of the RTL. As soon as it XOs, I annotate that S1 is over and I plug in my pt1 for S2. Despite being caught off gaurd by the DECR PRV, I am still on the RIGHT SIDE by MONITORING the XO of my RTL... The top of bar 7 is my current pt2 and I am looking to see whether bar 8 will extend it or retrace it to give me pt 3... I want to be comfortable that L2 is a LONG and not a LATERAL/PENNAT so I am on alert...
continued...
MAK!
