God Awesome V1.71

Much of a market’s story can be read from RSI2 divergences.

I’ve got Mr. Maroon on the screen, my Modified Fractals and the God Awesome V1.71 on the screen.

Vocabulary first.

Reversal Divergence is when the Oscillator shows a higher reading on a lower low or a lower reading on a higher high. (Yellow lines)

Continuation divergence is when the Oscillator shows a more oversold condition at a higher low or a more overbought condition on a lower high. (Red and Brown lines)

Let’s try to read it together!

Pay extra attention to what is happening with the continuation divergences.

After the market reaching a full charge (white stripe at the low), it made a reversal divergence with the back test down (see the two fractals connected at the low with the yellow).

On the way up the market broke the secure high (set by the previous continuation divergence).

Price had a smack down at Mr. Maroon which resulted in a higher, secure low as the continuation divergence underlined it. (Starting point of Wave 1 up).

There was a continuation divergence on the way up that got broken (brown) and eventually a new, secure lower low was printed with the red line down showing up.

Wave 2 down was coming back through Mr. Maroon until a secure, higher low got printed which was accented by a reversal divergence as well.

Another continuation divergence was broken on the upside as well as a reversal divergence.

By all standards this is a Wave 3 up, yet the market is not running yet.

Why? Because there is a lot of head scratching here, at the oversold neckline (20%).

The Comfort Levels were added for better gauging.

All systems go for a buy, but the belief in further Euro strength is lacking, or we are just waiting on the start pistol. (CP2 starts at 1.0975)

The current market theme has been a strong Wave 1, a lackluster Wave 3 and a rip your face off Wave 5.

We could be facing something similar here.

A mean reversion could take the price back to 1.10.

Price is banging its head into the lower guard rail (Neon Green).

God Awesome copy can be obtained upon making a donation of your choice to macdulio@yahoo.com

As for actualities, I made the following routine for better entries and exits.

2 Fractals is its title, and was made for 15 minutes.