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cnms2
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Everything posted by cnms2
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A few sub-fractal observations.
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The "ten cases" could be applied.
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A quick reply: Fast / slow pace means high / low market activity, due to various reasons. I've attached a theoretical example of how the same waveform is seen under fast and slow (variable) paces. The vertical lines being considered 5 minute chart bars, it can be seen how under slower pace a faster fractal becomes visible. I don't agree with your quoted statements, but can't say / prove they're incorrect. Maybe you'd like to move from theoretical to real examples.
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Use volume to follow the order of events, and price to define the context. When the pace decreases the next faster fractal may become visible; when pace increases the fastest visible fractal may not be visible anymore. In addition to monitoring your trading fractal, it is sufficient to also follow the next faster fractal and the next slower fractal. This monitoring can be done on one chart, or on multiple charts. Using the same methodology, when you monitor only the 5min ES you normally trade one fractal slower than the one you trade monitoring both the 5min ES and the 2min YM.
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I've added a few notes to your chart snippet. I'd also suggest you try firstly to have a good understanding of the 5 min ES charts.
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I've marked on your char what I see at that level. It's very close to what you've drawn when you relied on volume. I don't think it's an "art", and I don't think there's ever a situation in which I have to "ignore" what I see. There might be possible to correctly monitor just watching how the price moves, but for me volume is of paramount importance. Jack stated that he could trade just based on volume data, and I think it's possible.
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To me, they both make sense. Starting from the same volume information, they're intended to highlight different things:a) dominance b) sub-fractals.
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(using Gucci's DAX H11 chart) Which set of annotations makes more sense? a) green, red b) blue, purple
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I use the words "faster fractal traverse" when I refer to a traverse on a fractal faster than another fractal. I don't give it a special significance that has a specific definition. I use "faster", "slower", or "same" to relate traverses on various fractals. In the example you posted, that started this exchange of messages, there was a non dominant traverse. In relation to it I annotated a "faster fractal traverse", which was one of the legs of the traverse in discussion. There is no other meaning behind my using of "faster fractal traverse". Regarding the second part of your question, and I assume that this is the actual thing you're struggling with, "how one can identify and correctly annotate nested fractals", this is actually one of the fundamentals of the method in discussion on this thread. I have no better way of explaining it than what Spydertrader posted. There is a "puzzling" contradiction between the simplicity of the basic principles of this method and how difficult it is to actually apply them successfully in real time. This is probably caused by the baggage of beliefs and misconceptions that every student of the method adds. My suggestion, to anybody who asks, is to not get stuck in looking for irrefutable definitions and rules that would make it all clear and mechanically applicable, but to get into the mode of trying to understand what's happening on three observable fractals, where the middle fractal is the trading fractal, and have an opinion at the closing of each bar.
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I see many similarities between the 11:00 12:30 period of your chart, and the snippet of a few days ago.
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Google "faster fractal traverse".
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When you review older charts you have to be aware of the historical context, and of what the author tried to illustrate using whatever tools available at that time. I've degapped your snippet and added a few notes. During the trends' overlap either the old one or the new one manifest stronger. The price context may be helpful to clarify it.
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That's very helpful thank you. The attached clip, posted within this thread by Spydertrader, seems to be an exception. i.e vol on the 3rd leg (2r) is lower than the vol on the 2nd leg (2b). To illustrate my view, I added a few annotations to the snippet you posted. The last leg is a faster fractal traverse that became observable because of the lower pace. It shows the anticipated volume sequence.
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Yes, I do. When this seems not to happen I'm looking for a faster fractal, pace change, and / or an annotation error. The price context might help.
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The volume highlights make more obvious the expected volume sequences on the same fractal. In my previous post I wanted to present a different view of that decreasing red volume section.
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Based on volume analysis, I believe that on your second chart the new up trend started at 11:00 (pt1), and its pt2 was still to come (so the down trend pt2 and pt3 at the previous flex points).
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Besides what others recommended, other things that seem to help me: write 1, 2, 3 on your chart's price pane, wherever you determine them to be, for the three fractals you're monitoring (trading fractal being the middle one); don't rely only on drawn lines be aware at all times what's the current pace level, and what period of the day you are in; during extreme pace a complete volume sequence may indicate one fractal, during moderate pace a sub-fractal, and during low pace a sub-sub-fractal, so to speak; consequently, time wise, a complete sequence on a given fractal takes more bars during lower pace.
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On your chart I've highlighted the laterals that I think clarify the picture.
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If the volume's through of the x2x move (pt1 to pt2) happens where the price crosses the previous container's rtl, then the pt2 of the new container must be outside the previous rtl.
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I believe the faster fractal b2b2r2b ends at 13:00, forming the B2B, and reaching PT2. Then a lateral starts.
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My take of that period and context.
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I believe this is the TL post with the link.
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Spydertrader's 10 cases (Tapes) post looks only at bars, without mentioning their closes. So, I think that although those closes offer useful information about the market's sentiment, they're not significant for tape drawing.
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FilterTip just brought back attention to a few informative posts Jack wrote in July.
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It's better to attach illustrative chart snippets to your questions. You know how they say "a picture is ..." Slower paces act as a magnifier, so you can see finer fractals. Faster paces hide finer fractals. Step back and look at the broader picture!