The 89-Eyed Iguana

(from the series, “The Averages Are Moving”)

Let’s talk about this purple colored reptilian creature for a moment, for to better understand the obstacles, we must.

This Sechuan Leguan aka 89 EMA can spit in you cabbage soup. Not that you would notice it.

The point is that it has an eight ball, which has three sides, square – says on the first triangular side, spike on another and let go on the third.

No, I don’t know how Milligan comes here.

The act of squaring – examples

This squaring that takes place at this EMA is an opportunity to dump excess longs/shorts for 20 to 50 pips better price.

A let go is what follows a squaring – and at times they appear as a combo like on the image above.

Practice their logic on the image below. The theme is squaring, let go and spike always in this sequence, and sometimes you get multiple spikes.

Notice the fresh high before a spike on the upside and a lower high that brought on squaring instead of another spike.

Hopefully you are starting to understand now the difference between the racer and the eraser.

Appendix

Cover Shorts + spike = Category B Buy; Cover Longs + spike = Category B Sell

Notice the inside bar 2x fork lining up with the Iguana for a possible spike.

spike ~ candle closing back up / down by 12-14 pips+, stands out and occurs out of medium term overbought / oversold – or originate from a reptilian but the latter is in the direction of the movement, not against it

   if (High[i+1]-Close[i+1]>140*Point && High[i+1]>High[i+2] && High[i+1]>High[i] && stoch30[i+1]>35 && High[i+1]>iMA(NULL,0,89,0,MODE_EMA,PRICE_MEDIAN,i+1)){
      ObjectCreate("Objeceat"+DoubleToStr(i)+DoubleToStr(3), OBJ_ELLIPSE, 0, Time[i+2],  High[i+1], Time[i], Close[i+1]);
        ObjectSetInteger(0,"Objeceat"+DoubleToStr(i)+DoubleToStr(3),OBJPROP_COLOR,clrCrimson);
         ObjectSetDouble(0,"Objeceat"+DoubleToStr(i)+DoubleToStr(3),OBJPROP_SCALE,.045);
        ObjectSet("Objeceat"+DoubleToStr(i)+DoubleToStr(3),OBJPROP_BACK,0);
        ObjectSet("Objeceat"+DoubleToStr(i)+DoubleToStr(3),OBJPROP_WIDTH,8);
   }
  
  
     if (Close[i+1]-Low[i+1]>120*Point && Low[i+1]<Low[i+2] && Low[i+1]<Low[i] && stoch30[i+1]<65 && Low[i+1]<iMA(NULL,0,89,0,MODE_EMA,PRICE_MEDIAN,i+1) && Open[i+1]>Close[i+1]){
      ObjectCreate("Objeceat"+DoubleToStr(i)+DoubleToStr(3), OBJ_ELLIPSE, 0, Time[i+2],  Low[i+1], Time[i], Close[i+1]);
        ObjectSetInteger(0,"Objeceat"+DoubleToStr(i)+DoubleToStr(3),OBJPROP_COLOR,clrDarkGreen);
         ObjectSetDouble(0,"Objeceat"+DoubleToStr(i)+DoubleToStr(3),OBJPROP_SCALE,.045);
        ObjectSet("Objeceat"+DoubleToStr(i)+DoubleToStr(3),OBJPROP_BACK,0);
        ObjectSet("Objeceat"+DoubleToStr(i)+DoubleToStr(3),OBJPROP_WIDTH,8);
   }