Is it a QM (Quasimodo) ?
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ReadtheMarket - Supply and Demand with Price Action
- #1,746
- Jan 5, 2015 5:56pm Jan 5, 2015 5:56pm
- | Membership Revoked | Joined Nov 2010 | 3,072 Posts
Really nice, simple work Dumper. That's just how it should be 
By the way, RTM is up again in our normal URL, so you can use your bookmarks again, at last!
By the way, RTM is up again in our normal URL, so you can use your bookmarks again, at last!
.- #1,751
- Edited 12:23pm Jan 8, 2015 12:00pm | Edited 12:23pm
Hey everyone, great thread, really picked up a lot from it, thanks to all, especially IF.
One thing still puzzles me a little however. I've created a few images to help me explain myself.
In the first chart here, we're on a bullish move, and there are two important shorts FTRs (A & B) to get through. A FL (1) forms just below (A), pushes through it, and then another FL forms above, making the FTR (2). There is some distance between (1) & (2). A second FL then forms (3), which pushes through the second FTR (B), and then prices comes back and retests the FL before making new highs, meaning the second bullish FTR is basically on top of the FL where the decision was made to push through (3).
In the second chart, price fails (off some imaginary level I've not marked in), and falls through the second of the bullish FTRs created on the up move (3). The bullish DP to push through the short FTR (B), and the FTR formed thereafter, are basically on top of each other, and can be thought of as a single zone. The engulf of this zone opens up the way down to the next important FL (2), which is the FL/FTR formed after the break of the lower short FTR level (A).
Next, the lower bullish FTR is engulfed (2). But here's where I get a bit confused.
Is it only FTRs which are important? Working on that assumption, then after the engulf of (2), even though we might have a bounce off the lowest bullish FL (1) - which is where the decision was taken to push through the lower short FTR (A) - we would expect price to reach all the way down to the origin of the move.
Or is it the case that each FL (1) & (2) must be thought of important levels in their own right? That the FL decision to push through a FTR (1) is just as important as the FTR formed thereafter (2)? In this case, the engulf of (2) would only open up as far as (1), and (1) would also need to be engulfed to reach the origin of the move.
When the DP FL and the FTR are basically on top of each other like in (3), this is simple, because they can be thought of as one zone. However, when there is some distance between DP and FTR (1) & (2), then I'm unsure if only FTR (2) is important, or whether both (1) and (2) are separate important levels in their own right.
Hope this makes sense, and thanks in advance for any help :-)
(edit: just to simplify things, let's assume that the FL (1) is not an important FTR itself - it's just a FL that formed at the end of a pole. Obviously if (1) was in itself an important FTR, it would be clearer, but let's just say it wasn't formed after the break of anything significant)
One thing still puzzles me a little however. I've created a few images to help me explain myself.
In the first chart here, we're on a bullish move, and there are two important shorts FTRs (A & B) to get through. A FL (1) forms just below (A), pushes through it, and then another FL forms above, making the FTR (2). There is some distance between (1) & (2). A second FL then forms (3), which pushes through the second FTR (B), and then prices comes back and retests the FL before making new highs, meaning the second bullish FTR is basically on top of the FL where the decision was made to push through (3).
In the second chart, price fails (off some imaginary level I've not marked in), and falls through the second of the bullish FTRs created on the up move (3). The bullish DP to push through the short FTR (B), and the FTR formed thereafter, are basically on top of each other, and can be thought of as a single zone. The engulf of this zone opens up the way down to the next important FL (2), which is the FL/FTR formed after the break of the lower short FTR level (A).
Next, the lower bullish FTR is engulfed (2). But here's where I get a bit confused.
Is it only FTRs which are important? Working on that assumption, then after the engulf of (2), even though we might have a bounce off the lowest bullish FL (1) - which is where the decision was taken to push through the lower short FTR (A) - we would expect price to reach all the way down to the origin of the move.
Or is it the case that each FL (1) & (2) must be thought of important levels in their own right? That the FL decision to push through a FTR (1) is just as important as the FTR formed thereafter (2)? In this case, the engulf of (2) would only open up as far as (1), and (1) would also need to be engulfed to reach the origin of the move.
When the DP FL and the FTR are basically on top of each other like in (3), this is simple, because they can be thought of as one zone. However, when there is some distance between DP and FTR (1) & (2), then I'm unsure if only FTR (2) is important, or whether both (1) and (2) are separate important levels in their own right.
Hope this makes sense, and thanks in advance for any help :-)
(edit: just to simplify things, let's assume that the FL (1) is not an important FTR itself - it's just a FL that formed at the end of a pole. Obviously if (1) was in itself an important FTR, it would be clearer, but let's just say it wasn't formed after the break of anything significant)
- #1,752
- Jan 8, 2015 1:15pm Jan 8, 2015 1:15pm
- Joined Dec 2006 | Status: Backtest is meaningless (to me) | 2,176 Posts
- #1,754
- Jan 9, 2015 9:50am Jan 9, 2015 9:50am
- Joined Dec 2006 | Status: Backtest is meaningless (to me) | 2,176 Posts
- #1,759
- Jan 13, 2015 10:28am Jan 13, 2015 10:28am
Ah! Now it's beginning to come togetherI'll crack up though if I ever read about an "engulfing candle"! They mean absolutely nothing without the engulf of a pole base.
I'll post a chart here for clarity:
Which FTR is more important, (4) or (5)?
Thanks for any help