The Volatility Whip #2

Who blinked this time?

They both did, but then the bulls blinked again.

What made this 5-wave structure down a primary Wave 2 down?

The fact that it crossed back down through the top of Mr. Maroon.

What is a promotion?

if (Close[i]>iMA(symbol,0,136,0,MODE_EMA, PRICE_LOW,i) && High[i]>iMA(symbol,0,268,0,MODE_EMA, PRICE_LOW,i) && High[i]>E16[i] && E32[i]>E16[i] && RSI2[i]>93  && RSI2[i+1]<93 && Close[i+1]<iMA(NULL,0,32,0,MODE_EMA, PRICE_MEDIAN,i+1)+50*Point){

A promotion is taking place above the E16 and E32 local to 15 minute, above Mr. Maroon, above the E136, has a spiking, peak RSI2 reading, yet it is lower than E32 plus 5 pips. It is a high serve for a slam dunk that would ultimately reverse the price. It shows up as a liquidity break on the 1H.

Liquidity break (purple dash) to slam price to the other side of the channel. I called this move Driven Thrust in my book, the Computer Aided Trading.

What provided support for Wave 2 down?

The bye-bye level of the swing up to Mr. Maroon, which is 35% beyond the length of the initial move (Close/Hedge on the screenshot).

Why was not the magenta drawing a channel at all?

A channel requires a trend line which is defined by 3 touches within reasonable time. The Magenta line was never a tend line.