The Price / Volume Relationship

[dkm 10]

Tapes for the whole day

[Spydertrader 10]

tape to bar 6: the template (F) shows a horizontal dotted red line to an FBP.

 

The Horizontal Line represents a boundary which the market needs to break in order to create the RTL, rather than, representing an RTL or LTL.

 

tape to bar 7: bar 7 is an outside bar and the template (D) shows diverging lines.

 

See Attached.

 

 

tape to bar 12: bar 12 is sym pennant and the template (G)shows converging lines.

 

I simply neglected to add the Bar 12 Annotations. Thanks for pointing it out.

 

HTH.

 

- Spydertrader

[dkm 10]

How do you handle these variations of E and F?

[Spydertrader 10]

How do you handle these variations of E and F?

 

See Attached.

 

[FJK 10]

This is an example of a trade using Spydertraders "multi-fractal" sequences. It is from today (I covered at 1551 EST). Notice that a faster up-trend has to complete before the slower down trend can continue.

 

I covered with 2pts. profit due to the time of day which can be - as you all know - rather noisy. My reason for covering has nothing to do with what Spydertrader has posted earlier.

[rs5 10]

7 July 2009 - monitor and notate

[NYCMB 10]

Hi Spydertrader

 

I have questions regarding 2-bar tape:

 

a) Bar 7 is OB on IRV; and, you have Green 2-bar up tape starting on Bar 6. Is is because Bar 7 close back inside Bar 6?

 

b) Bar 6 is the 2nd bar of FBP; and, you have Brown 2-bar down tape starting on Bar 5. Did you draw the Brown down tape after Bar 6 close? Or, you did not draw the Brown tape till Bar 7 close which offer lower low bar end? TIA

[Spydertrader 10]

a) Bar 7 is OB on IRV; and, you have Green 2-bar up tape starting on Bar 6. Is is because Bar 7 close back inside Bar 6?

 

You'll kindly note that none of the ten examples contain an 'open' nor do any of the examples contain a 'close.' The examples show how to anotate an RTL based off an Outside Bar. Note the divergent trend lines. These are LTL's. But they still need an RTL for each. Now note the green RTL.

 

b) Bar 6 is the 2nd bar of FBP; and, you have Brown 2-bar down tape starting on Bar 5. Did you draw the Brown down tape after Bar 6 close? Or, you did not draw the Brown tape till Bar 7 close which offer lower low bar end? TIA

 

Bar Seven Close..

 

+++++++++

 

Remember, the goal of this exercise is to 'get the feel' for drawing tapes - bar by bar - so you can know how to annotate any two or three bar combination. Once you learn this skill, you'll move onto combining 'tapes' in order to see the fast trends as they build the next fractal - the traverse.

 

For now, simply apply the template (tentapes attachment) onto your charts - anywhere you can draw a tape. In the very near future, you'll apply the fractal nature of the market onto your chart while developing the ability to see all three fractals in an effort to consistantly apply the trend line drawing rules onto every trading fractal in the exact same fashion.

 

- Spydertrader

 

P.S. Everyone should read that last sentence again and again to see if it applies.

[Spydertrader 10]

7 July 2009 - monitor and notate

 

Nice Automation, but you might want to review your code for 'Lateral Formations.' See Attached.

 

- Spydertrader

 

[Spydertrader 10]

Notice that a faster up-trend has to complete before the slower down trend can continue. I covered with 2pts. profit.

 

Nicely done.

 

- Spydertrader

[trade4living 10]

.

 

In your chart with tapes, shouldn't the bar marked with red arrow be part of the down tape since that bar in question and the bar before it forms a down tape.

[Spydertrader 10]

In your chart with tapes, shouldn't the bar marked with red arrow be part of the down tape since that bar in question and the bar before it forms a down tape.

 

The 'red arrow' bar is part of the down tape, but it also creates the first bar in the next UP tape. All trends over lap, and they do so on every fractal. They overlap at Point One.

 

- Spydertrader

[rs5 10]

Nice Automation, but you might want to review your code for 'Lateral Formations.' See Attached.

 

- Spydertrader

 

Thank you so much! This is the feed back I was looking for. Hopefully it will all be "automated" some day. For now it is look, draw, erase, redraw, search, compare.... In this exercise, should all "long" and "short" tapes between 2 bars be shown?

[Spydertrader 10]

In this exercise, should all "long" and "short" tapes between 2 bars be shown?

 

For now, annotate every tape you can on your chart. Then, begin to 'merge' the various tapes together into a trend.

 

- Spydertrader

[traverse 10]

Why is the 2nd one not a lateral? Are there paramaters to use as a guide to know what a valid lateral is and if one can end before price exits it. Currently if it's not the first 2-3 move of a traverse clarity of laterals is way slow.

 

 

Nice Automation, but you might want to review your code for 'Lateral Formations.' See Attached.

 

- Spydertrader

 

 

 

[Spydertrader 10]

Why is the 2nd one not a lateral?

 

All lateral formations develop out of a three bar Series. Bars Two and Three sit 'inside' Bar One where the Highs of Bars Two and Three sit no higher than the High of Bar One and the Lows fall no further than the Low of Bar One. The 'second' example shows Bar Three with a Higher High than Bar One of the three bar series. As Such the second example cannot form a 'Lateral Formation.'

 

Are there paramaters to use as a guide to know what a valid lateral is and if one can end before price exits it.

 

 

Currently if it's not the first 2-3 move of a traverse clarity of laterals is way slow.

 

After completing the 'tape drawing' drill, and after one begins to 'merge' the individual 'two bar' tapes into longer trends which continue the current 'tape fractal,' stop annotating 'tapes' within Lateral Formations. Begin to note the significant shift in Pace which develops inside every Lateral Formation. Note as well the changes which develop as Price moves from inside a Lateral Formation to an area where the Lateral Formation ends.

 

The market provided a very nice example today (starting with the ES 11:25 [close of] Bar).

 

- Spydertrader

[ehorn 10]

Volume leads Price. Always. And without exception

 

....Lastly, the market speaks on every single bar delivering its signals to the trader in a timely fashion – and well in advance of the next trend. It turns out; one need not know how long a particular trend will last. One only need know the signals for when a particular trend has come to an end. As all trends overlap, where one trend ends, the next trend begins....

 

- Spydertrader

 

Hear! Hear! It speaks and we strive to listen.

[rs5 10]

8 July 2009 - still studying, monitor and annotate. These are all hand drawn. (Pardon some of the lines, ninja cursor is snapping to some invisible grid and I have not yet found the toggle to turn it off).

[Spydertrader 10]

8 July 2009 - still studying, monitor and annotate.

 

See Attached.

 

- Spydertrader

 

[El Guapo 10]

I'm climbing on board as a sponge to soak up and absorb.

[friarwilliam 10]

I am climbing on also. I too wish to drink from the cup of life.

[Spydertrader 10]

Before one can learn how to learn to thoroughly and correctly annotate a chart, one must learn the process of differentiation. In other words, every trader must learn to distinguish that which he / she believes exists from that which the market has actually provided.

 

Attached, please find an example of Monday's (07/06/2009) ES 5 minute chart. I have marked several areas which, at first glance, appear similar, or to the untrained eye, even look exactly the same. However, subtle differences do exist among the various areas annotated.

 

Today's drill involves determining what answer best describes the differences, and once located, by using the information provided by the Price Pane and / or the Volume Pane, applying that answer onto other chart days in an effort to 'see' if your answer 'works' for every other exact same scenario - irrespective of market day.

 

Feel free to use your own charting software for this exercise. I snipped down the chart in an effort to make it 'fit' this space.

 

- Spydertrader

 

[jbarnby 10]

I'll take a stab at the laterals.

Edited July 9, 2009 by jbarnby

[El Guapo 10]

I cannot find the definitions for;

B2B 2R 2B

Or

R2R 2B 2R

 

What does "B2B", "2R", and "2B" mean/stand for?

What does "R2R", "2B", and "2R" mean/stand for?

 

What does Gaussian mean?

 

Many thanks!

[NYCMB 10]

Attached, please find an ES five minute chart for today (07/06/2009) containing Highlighted Areas where the market formed some of the formations outlined within the 'ten tapes' attachment posted earlier in the thread.

- Spydertrader

 

Hi Spydertrader,

 

I'm wondering if you changed the rule for bar coloring. There are seven Red bars with higher high, but close lower then open. At the same time, there is one Black bar with lower low, but close higher than onen. Is this a temporary change for learning Tape Drawing? What's the advantage of your current rule for bar coloring if it's a permanent change? TIA