You already know from me that the market does not turn direction without an RSI2 divergence, and also that the divergence may be between two measuring legs (wedge) or between two shoulders (H&S).
The first, obvious piece of information is this then: the answer to where is the Queen coming from is the last divergence she made.
Divergences that happened during stochastic embedding, should be eliminated.
The wedge turn happens between two measuring legs as mentioned before.
(The measuring legs are qualifying thrusts that register in the upper/lower third on the RSI2 HL2).
The comparison should happen on the highest/lowest prices reached and the corresponding RSI2 readings. It is important to realize, that the price highs/lows do not always coincide with the RSI2 highs/lows, so go with the readings at the “fractals”.
So, as the first example shows, the second high was achieved with a much lower RSI reading.
Now, to the most sensitive part, the anticipation. Anticipation is important, for you must be prepared for the upcoming turn in order to be able to make the necessary steps.
It is one thing seeing that the move is about to run out of juice, and start dumping your holdings especially upon seeing the resistance and the change in the angle.
It is an entirely different waiting for the turn to actually transpire before going in in the opposite direction.
This second part is incredibly hard if your vocabulary has no entry under the word: discipline. Males are by nature breachers, and bankers are doubly so.
You need to start putting yourself on the clock: knowing what time it is means to be present at the last 4h candle finishing and the new one starting to print.
So when did the turn take place in our example?
It did not happen until you had a 4h candle closing below 50% of its length after the print of the divergence.
The best entry would had been after that doji candle, on the 4h open at 1.1260 and on the 6 extra pips kick back there was an opportunity to add to the position to improve on the cost basis.
After this print the Queen’s direction was turned down.
As for some actuality:
The Queen has found a problem. Her solution might just be buying starting at 1.1136.
In conclusion, if you know what the Queen is doing, you know everything.
& this is what happened…