Principles by Day Ralio

True or not, who knows… These are merely principles. Current ones.

 

There are three components to price progression:

1. The wind – currently iMACD(NULL,30,48,104,9,PRICE_CLOSE,MODE_SIGNAL,0) </> iMACD(NULL,30,48,104,9,PRICE_CLOSE,MODE_MAIN,0)
2. Relationship to obstacles (deflectors (maggots / H4 Deflector lines) & wind tunnels (LEMA Quad))
3. The Wave Structure

 

Any 2 out of 3 determines the overall direction

!
The maggots / deflector lines can prompt a reaction that can become a full turn (let it be 3-point or change of wind)
So can the Market Maker levels

Increased chance for a turn taking place at a camping site or inside a reversal zone (see comfort levels)

Maggots are the levels utilized for continuation in the opposite direction, for they are pivots

 

Directional exhaustions happen in pairs – see my articles about the Shape for an image

 

A Wave 1 goes OB/OS once
A Wave 2 goes OB/OS twice.
A Wave 3 goes OB/OS twice.
A Wave 4 goes OB/OS twice.
A Wave 5 goes OB/OS once.

1+2+2+2+1 = 8

 

Wave A goes OB/OS three times.
Wave B goes OS/OB twice.
Wave C goes OB/OS three times.

3+2+3 = 8

 

I am a STRUCTURE trader.

 

Short term trading live with Macdulio

 

My long entry conditions are:

– after price has come back through the ROOT: Wave 3, 1H Local deeply oversold (<15) + level
– wave 2 or wave 3 or wave 4: price pulls back to a previous upside exhaustion level

– price finding support at the 1H green river
– price finding support at 2H LEMA
– price pulls back into the river after a flip over

My long exit conditions are:

– price is in a wave 5 to the upside && price is local overbought
– price just finished wave 1 with a buying exhaustion

 

My short entry conditions are:

– after price has come back through the ROOT : Wave 3, 1H Local deeply overbought (>85) + level
– wave 2 or wave 3 or wave 4: price pulls back to a previous downside exhaustion level
– price finding resistance at the 1H green river
– price finding resistance at 2H LEMA
– price pulls back into the river after a flip over

My short exit conditions are:

– price just finished wave 1 with a selling exhaustion
– price is in a wave 5 to the downside && price is local oversold

 

Trend riding is done as follows (portfolio management):

Oversold/Overbought embedded market (3 days spent beyond the neckline)
Enter on a local oversold / overbought condition as close as possible to the neckline, with a stop beyond – at maximum 5% distance

Exit after the violation of the neckline (multiple closes below), while price is making an effort to get back into the overbought/oversold field

The most violent, sudden moves come from the inverse setup, so it would make perfect sense to reverse your stance and take a ride at least to the 50% line, but very possibly to the other extreme