Quote from dkm:
1. What is the correct conclusion / action if I see decreasing black volume? Hold short?
2. Is the FTT invalidated because I no longer have decreasing red volume?
3. Is the appearance of decreasing black vol sufficient information to justify a reversal back to long?
4. Is the appropriate action to reverse to long and monitor for increasing black volume?
This is a situation that arises repeatedly every day. In fact, at most FTTs. If I reverse when only seeing increasing black volume , then the net result is frequently a loss. Is this unavoidable without the use of finer tools? I would just like to be very clear as to what is considered to be continuation and what is considered to be change, at this level of resolution.
Your question contains absolutely
no inferences with respect to
context. A short list of context variables which
do not exist in your post are:
Up Channel? Down Channel? Flaw? Volume? Volume Pace? Time of Day?
Leaving context out of the equation suggests two possible sources of error.
1. You see continuation or change as unaffected by context.
2. You currently are unaware that subconsciously you see
only the similarities (example: "then the net result is frequently a loss") in the sequence of events, and
not the differences which exist between such event sequences.
Context provides the impetus behind these
changes which, on the surface, create the impression, no differences exist. The reality is this.
"When context changes, the answer to the question, 'What must come next?' also changes."
For anyone experiencing difficulty at present, I recommend looking at the problem from a different point of view. Try solving
part of the problem first. If you can do that, then by
definition you are left with a different problem remaining to be solved.
One
must understand the differences which exist as a result of context.
- Spydertrader
