Volatility Retribution

To change the way the dice roll, counter directional volatility has to be proven.

Picture an olympic long jump event.

This guy had 3 little wishes, so he has 3 legs.

He starts to run (the drive) then he runs out of breath. They mark up this spot. He runs again whenever he catches his breath. Out of steam, the new outlier spot (fractal) gets marked up as well. They dig a sand box beyond this point. His penalty is having to go back a little again. He gathers all of strength, knowing that now everyone’s watching. He charges, he lifts his feet up in the air and swing’em like he just don”t care. He scores something beyond the 89 yards line (EMA). His penalty for the achieved ovation is that he has to go back to the other side of the arena, and he is being spanked all the way by the thuds and whistles of the cheering crowd.

He scampers on being unable to resist the force until the volume dies down from the deafening degree.

This scampering on is the volatility retribution.

Remarks: the retribution is not a given, but is a likelihood. The 89- yards marker is the key.

The crush in volatility would carry price away from the crowd (207 EMA).

How to play the Retribution trade?

  1. Fade the jump (doc-doc-doctor beat).
  2. Wait for 3 hourly closes back beyond the E89 for confirmation.
  3. Lock in better than break even.
  4. Trail.
  5. Wait for an RSI2 reversal divergence to print. A 99 or 1 print would be the start of the sand box.
  6. Exit scaling out while looking at the divergence unfolding. This jump may be 8-12 pips big, not 28+ like that olympic event was.

At that point the olympic long jumper may get the light on for another attempt.

The 3 red lines are the 3 attempts. The pink line is the start of the sandbox. The deep pink is the 89 EMA.