The Volatility Whip #1

This series is merely a tally for future reference to help figuring wave count, to help identifying what is part of a wave structure and what is not.

The volatility whip that transpired last night is shown by the white lines.

See, when the terminal wave is printed (wave 5 of Wave 5) the market does not immediately start a new wave structure. There is a period that I have called anything from incubation to duking it out to calibration to who blinks first (my kisses to E.W.).

As per the image above, on the 15 min chart the bears blinked. On a 1 hour neither the overbought nor the oversold lines were hit (87,13) , but the 30 minute did get oversold, and can be used in exchange.

One way of playing the volatility whip is once it has the ink dried on it, you put out pending orders 10 pips out from the V and the W terminal points. (In a prior article I used the LOCO mosaic word for LOck out CLose out).

Make note of how subtle wave 1 of Wave 1 up was that started printing around midnight, and it remained entirely inside the Volatility Whip. It started with a reversal RSI2 divergence (yellow line)

What made this wave up a Bona Fide Wave 1 up is the fact that it managed to breach the lower end of Mr. Maroon out of its available 3 pushing attempts (3 waves).

It is probably worth pointing out that the fractal count reached a second #3 (in green) before Wave 1 started.

This current 5-wave structure up (that defined a new channel) just made its second #3, although the other one was buried under the elllipses in matching color.

Oh wait, what is it printing currently if 5 Waves to the upside were made already? Should I start tying the second part already? Actually, not.

This looks like Wave 4 down, for the RSI2 reading has not yet taken out that of Wave 2’s down for a continuation divergence up.

This looks better now: