Now all that she wants
Is three little wishes
…She wants a nice surprise
Every once in a while
These are general ideas. Not for every instrument, not for every time.
I have never seen someone with an RSI2 HL2 and a Stochastic 10 put together as an indicator. This is my invention. I find it perfect for finding strength, weakness and! figuring out which wave you are in.
I call overbought above 77, deeply overbought above 85, oversold below 23, deeply oversold below 15 and extra deep oversold below 5.
You do not need to cover your short or take a long until a sign of strength. An RSI2 peak (I call it local overbought) that is just right, to start the first move up. It should not fall short of overbought or beyond deeply overbought. In this case, the line’s thickness make it look like it went further than it actually did. The reading was 84.8769 – trust me.
When a sign of strength was made, the bulls get three little wishes.
Making money is as easy A -> short C.
“A” comes from below 23 lands between 44 and 56, it prints a peak, and 4-5 bars later you should see something deeply overbought… your sell – for a lower low at a very minimum. Cover in the deeply oversold section.
How does this work with other instruments? Don’t know.
(I forgot to mention that you should put this indicator as the first one below the chart to have the letters plotted.)
Practice chart: find the sign of strength and the three tie-offs of the bull run.
I was watching when this – not so nice – surprise developed. I knew that it was a bonafide bull run, and that we were in wave 3, I knew that upto 15 pips penetration into wave 1 was a buy, and then I saw no buying whatsoever for the 3rd wish of the bulls. Those E-s mean Entry points. I did the calculation in head before the break of the lower fractal even happened. I came up with 1.1954 or so at a glance.
The surprise accordingly is a head and shoulders in a bull/bear section.