Does the market have a gender?
Perfect timing today; we have just witnessed the soccer / football / consolidation playing both sides yesterday.
A brief gap up – ever so slight – secured the false break on the upside. (Buy the gap fill & go!)
Now, how could you had known that the upside break was doomed?
The market was embedded 4H overbought.
After the 3rd close up in the overbought area, the market developed an overbought safety.
There was 1 close where, the overbought status was briefly lost, but they could save it. Nevertheless, there were chinks showing up in the armor (not a good omen).
But how could you had known if you did not have my _RSI2_ indicator?
For one, you could had downloaded my Comfort Levels 4H for free, to realize that the consolidation was taking place right under the oversold neckline. Not above it.
I kept on mentioning these two numbers on the front page of the blog. The LT (long term) deeply oversold and the LT oversold levels.
The problem with a market that is overbought, that it is not likely to sustain a break, especially not from out of the oversold zone. Granted, the largest and quickest moves come from the zippy commute between the oversold and the overbought necklines – but the consolidation would have to take place in our case above the oversold neckline – which did not happen.
It stands for Double Driven Ivan (my invention, of course). When the RSI2 starts bending the idle due to a pedal to metal condition, and this persists for at least 1.5 hours or 3 30-minute samples, I call that a drive.
The Double drive is when the Stochastics are also running extra hot (see my Stochastic Bars Mixed – freely downloadable plot and my Wishing on a star article).
The double drive ends up in a taper, a wedge, or a crazy Ivan (same thing). This is why I put the “I” in the title for a reminder.
Please try to figure out what is the common ending of the 3 DDI plots below:
Congratulations, you are not color bind after all, and you may have picked up on the theme of the final burn: the last thrust that is approximately 1.45 hours long. You want to see 3.5 candles alike for the finalé (after a hiccup).
DDI DN RSI2[i]>5 && RSI2[i+1]<2 && RSI2[i+2]<2 && RSI2[i+3]<2 && ExtMapBuffer2[i+1]==1 --------- DDI UP RSI2[i]<95 && RSI2[i+1]>98 && RSI2[i+2]>98 && RSI2[i+3]>98 && ExtMapBuffer3[i+1]==1
The DDI plot’s filters above.
You are welcome.
Below: the 3 other members of the Driven family.