Bear Market Rally

In the negative Keltinger Chaos field there would be rallies coming off of Hourly Lower Low Head Prints that would take price to the Fizzle level (all of these were described in the previous blog entry).

What is important to note here is not to forget the protective stop loss placement when in the money, but if stopped out do not try to go back at the same level again.

The fizzle would score something beyond the confirmation level. The 15-min ATR routine can help you with its Wave3 box to show where price would be far enough from the last consolidation level.

Once again we can highlight the importance of 2 things in a bear market: heads and volatility.

The current move would qualify for a mean reversion by getting back to the E207.

A new idea of mine is to start splitting heads based on being a lower low (26 sample) or not into outside and inside heads.

Wait for the top of the hour to arrive when the market is cooking with gas.

4 cubes to end it all, just like the other day. If the stochastic overdrive gets taken back by the settlement, there may be additional upside left.

After the Zero point Zero stochastic reading earlier this week, there wasn’t much risk of a lot more downside to come near term.

1.1190 was the 100+50% support level and the 1.1995 projected level was also met by the low placed at 1.1986.

One final thought for trading in this market: let things play out, do not interfere much.

All green buying wicks

A Wave C can be more powerful than a Wave 3.

So, it isn’t the first full line up that matters after all, but the first hour when it subsides. Embedding is always looming about.

You can see how they bought again at the same height where domeone else sold.