Nick’s Lessons #6

How to interpret the Stochastic Combo and the RSI2 Hedge?

(The Buy Next correction refers to the sharp down spike into the oversold)

When energy gets exhausted, a sideways to counter direction move is necessary to recharge it.

The upwards purple has no other meaning than showing that price recovered quickly.

What do you think needs to happen now, that the energy completely tanked?
It retraced all that move before continuing down.

Price pulled back to 1/2 way between Mr. Maroon and E32

Also, look at the subtle change on the Stochastic Bars pointing out the location of the ultimate head

So, would there be a higher high? Very likely. The question is how much the beat would be. On the downside it was 2 pips.