Nick’s Lessons #7 – Edges

Now that you have all of my indicators and receiving all updates, it is time to rank the signals

#1 Volatility Crush – see previous article – Scale in up to max size, target comes with it.

#2 Wave count – use hourly chart to figure continuation divergences

God Awesome V1.71 can find many of these divergences.

The end of Wave 2 sets up a continuation divergence (see the small blip prior to it)
Wave 4, the ambitious wave doubled down and set up a reversal divergence on top of the continuation divergence before disengaging. Look how Wave 4 penetrated into Wave 1 a bit – something that Elliott Wave does as not acknowledge the existence of.
Wave 5 tends to have a reversal divergence at its end, so the wave structure above does not look finished until a beat (the market seldom finishes a wave structure on a peak RSI).

Go down to 15 minute to see how the 3-wave structure of Wave 5 unfolds along with the RSI2 reversal divergence

#3 BB Gun (shallow beat) (S/A, B/B)

use maximum 2 orders 5 pips apart

size determined by 60 sample hourly stochastic D just out of overbought /

oversold up to regular size; in limbo – decreased size (1/2 of regular)

#4 Eshock (counter directional beat) any beat is a fade, use regular size, scale in in 2 steps

#4A Magenta/Purple E without Eshock – you are interested in the 2nd E in a sequence (B:, S:)

use regular size, maximum 3 orders 6 pips apart adding up to a regular size

or 1 order in regular size depending on terminal wave count

#5 Liquidity break signals (the purple strike outs on the hourly RSI2)

#5A break outs – limited continuation potential for price already had traveled 12 pips before triggering the stop order – use half of regular size, one order, do not go in again, there are W3, W5 targets listed, use the one most fits your Wave count

#5B failed break outs – when the market is not ready to make the break, and falls short 5-1 pip from the break out level, it can be faded – i.e. during a consolidation use half of regular size

#5C pull backs – they are to be played within the range, scale in with up to regular size before the break out level and use the target suggested

pay attention to the Buy Weakness / Sell Strength flags

Forget buying below the last value. You can also think backwards: 1.0805 – 1st order, 1.0809 second order, 1.0812 3rd order, 1.0815 4th order -> Regular size in total

#6 Fractal Switch signals – these are Maroon re-visit signals, the Trigger Level can be exceeded, so get it with half of regular size as close as you can and you may add to it while price stays within

the use of a smart trail stop or a protective 1-pip stop loss when in gains is advisable

#6B use the Wrong about Reversal value to get in on a continuation

Regular size would do

#6C use the Close/Hedge level with discretion for a counter trade upon factoring in the potential (Wave Structure, Stretch from the Mean)

1/2 of regular size

My Maximum size is 4 Lots

My Regular Size is 1 Lot

My half of Regular size is 0.5 Lots

…why did I choose 1.0861 for targets for my shorts?

Because that was the closest Strength Buy level. But even that I could not wait out.

It took me 10 years to figure out the perfect entries. You already have that available.

In the next decade I need to start using the right size & stay in for an optimal length (this is the hardest thing for me).

RSI2 Hedge now can pick up on certain double exhaustion sequences