Selling Weakness

I think I have a Stochastic Bars Mixed / Hybrid (my rendition of the good old Stochastic Bars) laying around somewhere.

For 15 mins, change the values to 40, 100, 160.

Selling Weakness is a comparison of red print present at the last Swing Low (i.e. Factal).

Sign of weakness circled. From the swing low, go in on 27, 34 & 40 pips pullbacks to build a holding. Do this all the way until your breakeven stops would start taking out your last positions. Oh yes, you want to be on the right side of the Market Makers, so your trading direction would have to be away from Mr. Maroon.

You already know that the Christening ceremony by the Market Makers is over with, and there is no reason to think that this move down would end before hitting the outlier leg. Wave 3 of Wave 3 just commenced.

Now you just need a good auto trail stop system from me plus the info above.

I’m guessing you could fill in the blanks about how buying strength would look like.

a drawing from yesterday

What do you know, an E-16 pullback for a wave 4 of Wave 3! So early on… A double dodge ball at the Market Maker Arena! Is this a real fight here or the MMs want to hand out more longs before the continuation?

Who knows, all is well as long as you manage to extract moneys without adding to your unhedged, naked directional risk. I for one love markets going nowhere and providing cash every couple of minutes. The math is still 100x$5=$500.

The bias? That has not changed until you see 5 hourly closes printed above Mr. Maroon. A wave 4 has ambitions. Gotta wait it out.

A trifecta then, throwing in a back test of the previous channel?

Certainly a head-scratcher, but it could be that the trend channel drawn is just too steep without this adjustment & redraw. If it is about that, then a 3rd touch would be needed to upgrade this resistance line to a trend line.

The answer to how high the wave 4 of Wave 3 down could go was in the continuation divergence. As wave 4 would be setting up a continuation divergence of its own, the price had to become more overbought and stay lower than the last reference point.

All of this however calls into question my wave counting. The fact that this move up went back through Mr. Maroon says that this was a Wave 2. Wave 3 down has not started yet, and based on this, it could be a long one down.

Now the channel looks about 45 degrees, the sustainable kind.

Close enough