Meet the Market Maker, keeper of the bridge (Mr. Maroon).

He has one question for you.

What is your favourite colour?

If you, Mr. Wave 1 answer this right, then he’ll say: fine, off you go – this is market making at its finest.

Now what happens when you are on an exuberant quest, and you happen to answer:

Blue! No, the red. And maybe gold too.

You would of course be swung back to where you started your quest from.

I know I called this a Wave 2 failure at first. I was wrong.

What happened was that the Wave 1 failed by becoming much too overbought much too soon (60-sample stochastic D).

So, applying the necessary corrections, the reality goes like this.