Only Traded Half Day Today .....
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Spydertrader's Jack Hershey Futures Trading Journal
- Thread starter Spydertrader
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Spyder,
I've been having some difficulty identifying how price enters/exits flaws. I know that price will exit the flaw(continuation) in the same direction that it enters, unless there is an overriding change, like an FTT or FBO.
Is the DIP that is marked on your chart at 11:25-11:40 an example of an overriding Ftt. I had thought that price had entered the flaw from above and should therefore exit downward. But instead, price exited the flaw upward into the Ftt before continuing down.
Could you explain how you saw this price/volume action unfolding?
Thanks,
phineas
Note: Since Flaws normally appear during a dominant traverse and this was a non-dominant traverse, I had noted that this was a heads-up for a likely change in the trend to down.
I've been having some difficulty identifying how price enters/exits flaws. I know that price will exit the flaw(continuation) in the same direction that it enters, unless there is an overriding change, like an FTT or FBO.
Is the DIP that is marked on your chart at 11:25-11:40 an example of an overriding Ftt. I had thought that price had entered the flaw from above and should therefore exit downward. But instead, price exited the flaw upward into the Ftt before continuing down.
Could you explain how you saw this price/volume action unfolding?
Thanks,
phineas
Note: Since Flaws normally appear during a dominant traverse and this was a non-dominant traverse, I had noted that this was a heads-up for a likely change in the trend to down.
I apologize for the delay in my response. I am travelling at the moment (posting from the Phoenix Airport). I would consider your situation Red gaussians, but more than likely what is present is an HVS type of situation - unable to be accurately seen without dropping down a fractal. The only bar I find confusing (circled red) appears to gap up then close lower than its open. I assume the software settings use 'previous close' rather than, 'bar open' to color the bars. Sometimes, one simply has to ignore the price and volume bars, and draw in what makes sense.
- Spydertrader
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- Spydertrader
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Everything begins with asking the questions to locate "what must come next. Also, in the situation referred to in your post, we have two different fractals - a Steep Olive and a larger Kelly Green. On the Steep Olive fractal, we have an FTT followed by a breakout. Once price exits this channel, it is as if the channel never existed. The Olive channel never gets to 'see' what comes next. On the Kelly Green fractal, things appear quite different, What starts out looking like an FTT, turns into one very large dip. Once price began to move laterally, a trader then starts to think (as Jack says) "What wasn't that?" In other words, what must come next, didn't. Confusion over what type of Price action existed (during the time of the apparent lateral) resulted from a failure to anticipate what has to happen.
While it is easy to see how one could say, "I have an FTT followed by a lateral channel." Doing so has you mentally 'jumping fractals' without realizing it. Once the steep Olive channel ended, it was time to return (zoom out as I used to say) to the larger (Kelley Green) fractal.
Hopefully, focusing on the correct fractal (as in this example) provides a metric for alerting everyone as to when they have gone too far down the rabbit hole, and failed to come back out.
- Spydertrader
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