IMO this is an unusually large lateral, and thus there is plenty of room within it for a channel to form. When such is the case I would personally just forget about the lateral and focus on the things that I am confident with. Not saying I would enter on the R2R - I'd much prefer the orange PT3 after the BO. But if you remove the yellow lines, what do you see on that bar? A green FTT, which is also a signal for change.
Spydertrader's Jack Hershey Futures Trading Journal
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Context (Price, channel location, PRV & Volume and time period of channel) creates the atmosphere to properly judge the role of volume (level and pace) B.
If Price is respecting the channels than increasing or decreasing have to be judged within the boundaries that Price is operating. Sometimes given the type and size of a channel Price simply doesn't have the time or space to have decreasing volume to the RTL and we get the retrace in one bar on increasing volume.
That's my story and I'm sticking to it
-guava
Quote from guavaman:
If Price is respecting the channels than increasing or decreasing have to be judged within the boundaries that Price is operating. Sometimes given the type and size of a channel Price simply doesn't have the time or space to have decreasing volume to the RTL and we get the retrace in one bar on increasing volume.
That's my story and I'm sticking to it
-guava
"Sometimes" isn't exactly objective now, is it. For a method that is supposed to dictate change or continuation (and nothing in between or unknown) "sometimes", rules of thumb, or "it only happens once in a while" is hardly useful.
And when you say "respecting", respecting what. For example, last week I posted a question which boiled down to this situaiton: price was respecting BOTH a pt3 channel AND a lateral channel (which is what a lateral formation is at base). My question essentially inquired as to which channel got more respect. Is this such a ridiculous question to ask?
THe response I got was nonsensical. It said "I gave you instructions and you didn't follow". That's a non-sequitur. My question couldn't be answered by a set of instructions. I was asking about how the market works and what takes precedence over other things.
Examples of rational answers: 1) I don't want to answer you 2)you'll have to figure it out on your own 3) channels are more imporant than laterals 4) laterals are more important than channels 5) I DONT KNOW
Instead, I was attacked, called a fool, and told to leave. Guess what, I aint leaving. Over and over, I find myself in this same situation, only to find that days or weeks later, the very same questions I was dumped on about, are asked again by someone else.
You guys are making this so easy for me
Anyone wants to put me on ignore, fine, just understand you're sticking your head in the sand.Bundle, we were in a DOWN channel at that time (10/24, 13:40 time), and YOU decided that the FTT was going to lead to a pt 3 and an up channel. The only way a down channel is no longer a down channel is that price must BO of that down channel on rising volume. We were in an obvious down channel when a potential change could have taken place. But when volume started rising again down and BO of the double bottom occurred (on high/peak red PRV), you have to know you NO LONGER have a potential up channel. Had you reversed, you would have no only made up for the loss of your incorrect pt 3 up channel action but would have made a profit from the continuation of the down channel.
Not only did you enter late after the potential FTT, you decided to basically go down with the ship unless your pt 3 showed and you were validated. What ended up happening was you were not only wrong on what was happening, you took action too late. Then you come here and say that you dont understand how you were wrong. Then you get some snippity remarks as well as your answer and you STILL dont seem to understand the scenario.
I dont get it, do you want to understand or do you want to complain?
Not only did you enter late after the potential FTT, you decided to basically go down with the ship unless your pt 3 showed and you were validated. What ended up happening was you were not only wrong on what was happening, you took action too late. Then you come here and say that you dont understand how you were wrong. Then you get some snippity remarks as well as your answer and you STILL dont seem to understand the scenario.
I dont get it, do you want to understand or do you want to complain?
I had some difficulty matching the time to your chart, but I believe you have the thought process correct here. We had an FBO of a SYm Pennant. We wait. The next bar provides the direction, and if we had a position long, we would need to reverse. If we were sidelined, we would need to enter short.
Very True. I apologize for neglecting to include this very important time to go and 'see' what signals the YM has chosen to provide.
Note the width of this particular Lateral Formation. So wide is it, a real live down channel formed inside it. Certainly, one can articulate the differences which exist in this particular example compared to other examples where width does not equate, nor do we have a down channel within the Lateral Formation. One thing most people try to do is place the market 'inside a box' in an effort to shrink down a rule set. Instead of that paradigm, why not attack the problem thusly: What appears different with whatever it is that provides confusion ("What wasn't that?") With respect to trading at tree level, one should enter when the specific example provides the signal to enter. In other words, in the specific example above, one easily can see how it makes sense to enter on increasing volume (within the lateral), but remain ever vigilant towards any signal which would show otherwise. In other examples (much thinner lateral formations), one can clearly see how it makes much more sense to wait (until BO of the formation itself. Context provides the answers, and when context changes, the answer changes.
Wow. Shocked, no doubt, everyone is over another post from Bob which, when translated, provides no additional commentary other than,
"Whaaaaaaaaaaaaaaaaaaaaaaaaaa!!"
Seriously, stop acting like a damn crybaby. Cowboy up and get to work. Otherwise, find another place to post your 'Spydertrader isn't nice to me' crap. yawn
- Spydertrader
Haha, I thought of you when I read ST's post
Quote from guavaman:
What a thrill when the Master starts to paraphrase you!
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