Get With the Program pt. 3

Two more images for you first, then we’re going to continue with the heavy part.

Flow chart piece – easy enough still.

Now, for some fine tuning / sophistication.

You could read off the images that the 2 bull – 2 bear and the reverse are the tell tales of a sharp turn, or a crazy Ivan move.

Let’s try to find parallels and differences between the two ABC corrections of late. Our timing device is a 13 and a 44 sample Hull MA, their relationship plotted at the bottom.

This sell-off had the rationale to back test a break out / RSI2 divergence level.

It had impulsive waves at the beginning and at the end mirroring the other’s steepness / speed.

The length of the B wave was about equal to the length of A wave + C wave.

The total correction took about 30 bars = 15 hours.

The rationale was to back test a break out / RSI2 divergence level, but it failed to punch into it.

Impulsive strength selling was present towards the ends of the correction, not from the beginning.

The length of the B wave was less than 1/5th of the length of A wave + C wave.

The total correction took about 30 bars = 15 hours.

(The 2×2 text shows the back to back 2 bear 2 bull candles, that normally preceds a top – here it coincides.)

There is one more clue you can read out of the chart with the help of my 88 Luftballon indicator:

There was overt eagerness in selling, for as soon as the Driven box was plotted, it thrusted into it.

I have yet to include the driven condition as a reversal.

Better. As you can see, one more leg down with terminal length would take price to the Swing Buy level of 1.1462; yet I don’t expect price to reach beyond the teal RSI2 support. From the looks of it this was another shy away from the projected distance line.

Price just broke the continuation divergence displayed by my God Awesome indicator, and is on the way up to 1.1524. This should be your wave 1 up.

Market Makers had their opportunity to square their shorts.