Replies to post #54163 on SPDR S&P 500 (SPY)

[leftyg]

learning..I understand ATR in the same way..the 14 is the last 14 periods of data.

In a trend..a brick is formed if the price contines in the same direction that it has been moving, the amount of the brick size and therefore fills that brick or box..it will then show the additional brick.

In a trend reversal..the price has to reverse back through the amount of the last brick displayed, plus the same amout in order to show a reversal brick. That means in a trend reversal..the change in price is 2 bricks in size.

Let me know if that is still confusing.

[leftyg]

learning..I re-read your post. You are not correct in your assesment of what it takes to create a new brick. It is not a "violation" of a price during that period...it is the closing of that time period with the box or brick filled.

It should be thought of as a filling of a box at the close of a period. If a box fills during a period, and a new brick appears..yet later in that period the price drops below the fill of the box..that brick will disappear again. Capece?