thanks for the helpful post mike. i thought traffic meant alot of previous bar lows or highs.
so my newb question is than, is space the opposite of traffic? in that the candle has room to move before hitting a ppz and stalling or reversing.
please forgive me if this has been asked a million times already im currently working my way through the whole thread + pf. its alot of material
thanks, john
Traffic can come in degrees. SO you are correct that space is the opposite of traffic. But you can have small traffic(a few bar highs lows), or heavy traffic ( sideways market tons of bar highs/lows ppz, etc etc).
Funny you should ask someone just posted this exact question today in the beginner forum in the PF. It's funny cause these terms I just came up with to explain to people years ago how I see things. It's how they make sense in my head which can be far off from how I say them. Let me paste up what I put in there.
In the most basic form the less traffic in the short term, means the trade has less of the less important areas(ie a little bar high or low) to get in a trades way, to get to the more major areas(a ppz, roudn number, confluence etc).
So basically the less traffic in the area means less interference. That doesn't mean none, but generally speaking if their is crazy traffic all around a bar it has a worse chance of moving b/c there is less in the way.
Let me know if that makes sense
Mike
then I wrote in the next post
____________________________
Now to further clarify, there are different levels of traffic. A bar can be in traffic and tradeable if it is a good size bar, good level etc. All that means to me PERSONALLY is that I change my trade mgmt plan. I am not going to give the bar as much leeway as a bar in complete space.
Here is the recent example aud/jpy(see chart below). The pink lines are where my eye is drawn for space. There isn't a whole lot for me to want to buy and hold. But notice the pin is still nice and the location is great. So it is still worth trading for me. See how I personally managed this one here
(please see this post for live analysis) [
Now see chart 2(usd/cad weekly), for the extreme the other way. This is extreme space. If there is nothing to get in our way, getting to the major areas(blue ppz), becomes a lot easier. Think of it if you are in your car and you have an open road. You get to your destination faster then when their is traffic in front of you(obstacles).
Also I started using the term space way back in the day and it just caught on like wildfire. It really was just a way for me to word what was going on my head.
