romanus

See attached. B2B medium level thickness gaussians end at an FTT of the blue accel up tape.

IMO if one chooses to operate with three levels of thickness (both trendlines and gaussians) - for tapes, traverses and channels, then it all comes down to the consistent logic behind placing the gaussians. Everyone who has spent time studying Price/Volume relationship can attest to an intimate familiarity with the fact that Points 1, 2 and 3 of the traverses must be formed as FTT's of 'something' of finer fractal (which would be the TAPE if one choses to restrict themselves to three levels of thickness). The above mentioned tenet of the market is well known to everyone (even though some of us require an occasional reminder - myself included;)). Following the logic above, one can be sure that terminating medium level thickness R2R/B2B (reserved for traverses) at anything other than an FTT of 'something' of the finer fractal will result in incorrect gaussian annotations. 4/16/09 provides two examples of such logic - 09:55 and 11:50 both form a VE of the tape and as such can not represent Point 2 of the traverse. In second case, I believe terminating medium level thickness B2B at 12:15 would also result in incorrect placement of Point 2 as price is still moving within the lateral from p2 to p3 of 'something'.

My take on lateral differentiation. Compartmentalizing then into: 1) the ones that FULLY contain P2 to P3 movement of 'something' and 2) the ones, that don't, allows for matching them with correct gaussian of correct thickness.

The 5 min bars built by my data provider differ a little bit from yours. The second close outside of the lateral which begins at 11:50 (7/13/09) forms a 2nd bar of the stitch. The bar which follows the stitch closes back inside the lateral. Would I be correct extending the lateral further as shown by dashed lines in the attached? Thank you.