Channel Constuction Jh -spyder

Channel Construction Based on the

Price and Volume Relationship Methods of Jack Hershey Teachings of Spydertrader TIKITRADER 10/12/2009

Working with 5 Minute Price Bars *The following examples are based on constructing the channel from the building block tapes up. *All examples are based on a channel trend up. * Volume omitted from examples to focus on the containers of price

Page 1

Building Block Tapes

Starting with two bars, add trendlines to right and left sides *There may be more than two bars that fit in the tape Page 2

Layering the Building Block Tapes

BBT2

+

+ BBT3

BBT 1 Each BBT will connect together Page 3

Assemble the BBT's ●

●

●

Page 4

As each bbt is built, connect it to the next forming bbt. In all, three building block tapes will be connected that were just created. This will begin the next step and construct the Tape

Three Building Building Block Tapes connect to form one Tape

BBT2

BBT3

BBT1

Completed Tape Next. . . The Traverse Page 5

Assemble the Tapes

After completing the Tape constructed of 3 BBT's, continue to assemble the tapes together until a total of three tapes are combined to form a Traverse.

Page 6

Next. . . constructing the traverse

Traverse Construction Traverse built of Three Tapes Complete Traverse = 9 building block tapes

2 BBT9

Tape 1

BBT3

BBT2

BBT4

Tape 2

BBT8

Tape 3

BBT5

BBT7 BBT1

BBT6

Tape 1 built of 3 BBT's

3 1 Page 7

Tape 2 built of 3 BBT's Tape 3 built of 3 BBT's

Assemble the Traverses As each traverse is built, continue to attach them until three come together to form one channel. The channel will be built of three points. Each traverse will span the channel from point 1 to point 2, from point 2 to point 3, and finally point 3 on. P

Page 8

Next . . The channel completed

Bringing it all together

Channel Complete 2

3 Nine Tapes

1 Page 9

Three Traverses 27 Building Block Tapes One Channel