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I have a question for anyone who would care to answer. Lets say you are trading the tape on a 5min chart, and you clearly identify an uptrend and see completetion of the b2b2r2b volume sequence, and then price starts down in the opposite direction. Now since there was completion of the up sequence, I understand price can reverse trend. But here is my question. If it falls back to the rising trendline, then rallies and goes above the most recent swing high, does that by definition mean that the low at the lower trendline is now pt 1 and the new high pt 2? And if that is the case, does the up sequence have to complete, or can it abort without finishing and come back down?

 

Hope the question is understood.

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... Hope the question is understood.
A picture would make your question clearer. When a sequence seems to not complete, it is probably on a different fractal than the one you're thinking it was. Also: in the beginning of this thread spydertrader posted the "clean page 4".

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My view after some hindsight corrections. I can see that the challenge is staying on the right fractal, especially when the volumes are low.

5aa7101390aaf_14June10ES.thumb.png.a0e2364361fff745ce8f7be984184493.png

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My view after some hindsight corrections. I can see that the challenge is staying on the right fractal, especially when the volumes are low.

 

Wow, very pretty. Why is that?

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If some day you could annotate your gausian lines, it would be a big help. Label the r2r, 2b etc.

 

thanks

 

I think this image answers your question. It's on page 2 of this thread. I encourage you to read the thread if you want to learn this.

 

I don't recall mentioning anything about Price moving in a 'straight line.'

 

Price continues within the trend unless (and until) the Volume Sequences complete.

 

 

 

Always a good idea to understand the vocabulary words before moving forward.

 

 

 

Perhaps, viewing Volume Bar coloration through the lense of Price bar Open and Close isn't the path you should be taking.

 

 

 

Default settings on charting software do not necessarily provide the best view of all the information the market conveys.

 

 

 

I think so. It appears as if you 'see' these Volume 'colors' as a function of Price (however one's software chooses to color the individual bars). If using 'color' causes a roadblock for you, another set of vocabulary words also provides sufficient direction. In the attached, substitute 'deceleration / acceleration & deceleration / acceleration' for 'B2B 2R 2B' or 'R2R 2B 2R' in the Volume panes.

 

The vocabulary words used to describe the Volume Sequences do not play as important a role as the sequences themselves.

 

Some have even described the sequences as "hiking up and down mountains."

 

HTH.

 

- Spydertrader

 

attachment.php?attachmentid=11930&stc=1&d=1246832527

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rs5,

 

Could you please clarify your chart?

Looking for a moment at your most recent red container , we know because it is sloping down that the sequence corresponding to it is r2r2b2r. The problem I have, is that the 2b of a down sequence is a countertrend move of a more dominant down pattern. But the 2b as it is shown on your chart, has volume way in excess of the r2r portion of the move. How do you reconcile this observation?

 

It seems more likely to me that the large black volume at the close of the day completed the b2b sequence which began at the first ftt around 9:35. That would fit if we moved the dark blue lower trend line down, so that it included the low towards the end of the day. That way the down move which began at the upper ftt would be the 2r portion of the days up sequence, and the 2b the final move back up.

 

Does this make sense?

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rs5,

 

Could you please clarify your chart?

 

Looking for a moment at your most recent red container , we know because it is sloping down that the sequence corresponding to it is r2r2b2r. The problem I have, is that the 2b of a down sequence is a countertrend move of a more dominant down pattern. But the 2b as it is shown on your chart, has volume way in excess of the r2r portion of the move. How do you reconcile this observation?

 

It was close to the end of the trading day. There has been some discussion about this earlier in the thread. Innersky gave good advice above.

 

It seems more likely to me that the large black volume at the close of the day completed the b2b sequence which began at the first ftt around 9:35. That would fit if we moved the dark blue lower trend line down, so that it included the low towards the end of the day. That way the down move which began at the upper ftt would be the 2r portion of the days up sequence, and the 2b the final move back up.

 

Does this make sense?

 

Not yet. Will you post a chart to illustrate your question?

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Thursday 17 June 2010

 

rs5,

 

I see the cases are nicely annotated on the chart, are they on drawn automatically or manually. If yes, is there an indicator for it ?

 

tnx

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rs5,

 

I see the cases are nicely annotated on the chart, are they on drawn automatically or manually. If yes, is there an indicator for it ?

 

tnx

 

What do you mean by "cases" please? I use the following indicators on the chart.

 

A big thank you to the generous traders ahead of me in this journey for providing these indicators!

 

The rest I annotate by hand. Since I am in the process of training my mind, I thought that annotating by hand as much as possible is the way to train my brain to see what is unfolding.

es-ninja-indi.jpg.4152de8e3c219ca31febaf20af43b4dc.jpg

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What do you mean by "cases" please? I use the following indicators on the chart.

 

 

Those are the FBP FTP Hitches etc.

 

My kudos to those who provided the indicators as well.

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Friday 18 June 2010...

 

The ND Long 12:30 to 14:30 was a real challenge with the low volume and laterals. I had diffificulty doing the MADA and can only see it after the fact. Apart from sitting it out, would there be any better way of knowing WMCN and WWT in periods such as this ?

 

 

tnx

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Friday 18 June 2010...

 

The ND Long 12:30 to 14:30 was a real challenge with the low volume and laterals. I had diffificulty doing the MADA and can only see it after the fact. Apart from sitting it out, would there be any better way of knowing WMCN and WWT in periods such as this ?

 

 

tnx

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The ND Long 12:30 to 14:30 was a real challenge with the low volume and laterals. I had diffificulty doing the MADA and can only see it after the fact. Apart from sitting it out, would there be any better way of knowing WMCN and WWT in periods such as this ?

 

 

tnx

 

WMCN=what must come next, what is WWT?

 

Indeed it is a challenge on Friday afternoons, and especially on expiration Friday :)

 

Best thing I know to do is just to monitor bar by bar. And after each bar ask myself wmcn? If I do not know the answer, just wait until the market points the way again. I hope that helps.

 

I will not be able to post charts on daily basis for a while. Posting my daily charts here have helped my learning process over the past year (time flies while we are having fun!). Thus I hope that all that are learning here and monitoring the market will post to accelerate your learning process.

 

Happy MADA!

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WMCN=what must come next, what is WWT?

 

I will not be able to post charts on daily basis for a while. Posting my daily charts here have helped my learning process over the past year (time flies while we are having fun!). Thus I hope that all that are learning here and monitoring the market will post to accelerate your learning process.

 

Happy MADA!

 

WWT - What wasn't there.

 

Thanks for the posting so far. Following it the last few weeks helped me to see and annotate better especially on how to draw the nested gaussians.

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