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patrader
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Everything posted by patrader
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Decreasing black volume Case A followed by an internal formation with Increasing black volume on second bar of internal formation(last bar in examples).hth
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Increasing red Case B followed by an internal formation with increasing red volume on second bar of internal formation (last bar in the examples).hth
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Hmm. May want to rethink your reaction(the running part) to those bars.
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Invalid "entry" on your last bar (price or volume) of post.A price bar in the price pane and its matching volume bar in the volume pane always have the same color.Please try again.
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Start with increasing black volume case A's then add an internal formation with increasing red volume on second bar(last bar in examples).hth
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Slightly different context(you start with increasing black volume case A's) but still the same annotation for the internal formations with increasing black volume on second bar(last bar in each of your examples).hth
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ftp stitch down and fbp stitch up lateral formations with volume combinations.
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internal formations with volume annotated
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Latest corrected 2 bar cases document.
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Corrected sym stitch up and down lateral formations with volume combinations (all up stitches are black and down stitches are red no matter what the close of bar).Sorry for any confusion.hth
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Don't know of any exceptions.May want to ask jack in et if any exceptions.
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Updated version of three bars containing two 2 bar internal formations with volume combinations.Part 2
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Updated version of three bars containing two 2 bar internal formations with volume combinations.Part 1
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Fair enough.Spydertrader in post #5 of this thread posted nine scenarios of 2 bar formations and how to annotate using just price bars without volume included (http://cdn3.traderslaboratory.com/forums/attachments/34/11926d1246812959-price-volume-relationship-tentapes.jpg). I recently reviewed this document and decided to update it with post #3618(http://www.traderslaboratory.com/forums/attachments/34/33027d1353525876-price-volume-relationship-cases.png). Then i noticed that the scenarios could be further arranged hence post #3620(http://www.traderslaboratory.com/forums/attachments/34/33058d1353775983-price-volume-relationship-cases-v2.png).Looking at #3620 i see it should be further refined(see attachment).Jack recently posted some "rules" with regard to processing or not processing the second bar of internal formations using volume.So i posted #3636(http://www.traderslaboratory.com/forums/attachments/34/33221d1354466088-price-volume-relationship-internals-black-volume.png) to help others think thru and annotate the processing or not processing of the second bar of an internal formation.I also posted the ways that three bars in a row could appear with and without volume.I showed how three bars is really two 2 bar "scenarios".Then i posted three bars with volume so others could start the refinement of how to process or not process different combinations of three bars(really two 2 bar scenarios but with volume).Why bother? I have found this process to be enlightening.All price movements entail really just some combination of multiple 2 bar scenarios and depending on the volume and processing or lack of processing this changes the annotations.On my current charts all internal formations where the second bar is decreasing volume the second bar is lite gray in color.This indicates visibly to me to not process(no annotation of that internal formation).Just as important internal formations with increasing volume on the second bar i know to process(annotate).Also i know when to process internal formations inside lateral formations.This should help when you review the lateral drill posted by spydertrader on sym pennant lateral formations with a boundary.Lately i am reviewing how stitches fit into the scenarios.See post #3650 and the attached updated version.After doing this what's next? How about how to merge the 2 bar scenarios together.How to include the bar closes into the analysis when a rtl of a 2 bar scenario is broken or not broken.More to come.hth
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Sym stitch up and down lateral formations with volume combinations.How would you annotate each three bar combination with its matching volume?
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Eh and add a second 2 bar internal formation (requiring three bars) with different volume combinations.Same drill.Annotate the three bars using jack's processing or not processing
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Sym pennant and add a second 2 bar internal formation (requiring three bars) with different volume combinations.Same drill.Annotate the three bars using jack's processing or not processing.
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Fbp and add a second 2 bar internal formation(requiring three bars) with different volume combinations.Same drill.Annotate the three bars using jack's processing or not processing.
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Next we'll combine a pair of 2 bar internal formations (requiring three bars) with different combinations of volume.Here is the drill..Depending on the "processing" or "not processing" of the second bar of each 2 bar internal formation annotate the three bars.We'll start with a ftp and add a second 2 bar internal formation.
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Attached are two documents with 2 bar internal formations but add either decreasing or increasing volume on the second bar.Here is the drill.Using Jack's "process" or "not process" rule for internal formations annotate the attached internals.One of the increasing volume internals should prove interesting to annotate on each document.
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Symmetrical pennant(sym) combo's that never create a lateral formation and always create a lateral formation
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Even harmonic (eh) combo's that never create a lateral formation and always create a lateral formation
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Flat bottom pennant(fbp) combo's that never create a lateral formation and always create a lateral formation.
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When the market breaks out of a down rtl and closes back inside the rtl what should you do with the rtl if the market did not take out the known entity? Then the market forms a ftp but the second bar is decreasing volume.In post #3622 cnms2 was kind enough to link to jack comments on how to view the second bar of an inside formation(otherwise referred to as pennants)."the second or subsequence bar(s) is NOT processed if smaller in volume than the first".Now do you see a b2b? Also verify that the color of 13:05 down stitch on your chart is correct per the volume and bar coloring of this method.hth
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Here is the drill.Start with a ftp and add another bar.This third bar forms a 2 bar case using the second bar of the ftp and the third bar.Which "second" 2 bar cases never create a lateral formation? Which 2 bar cases always create a lateral formation? Which 2 bar cases can do both depending on the range of the third bar? (Spoiler alert. Don't look at attachment till after completing drill).Can you do the same drill using a fbp as the first case? How about the sym pennant? Notice any difference when using the sym pennant? Can you name the differences? Should create a few ah ha's.