Today we’ll be talking about one of these modern symbols.
The Axel Springer is now firing on 8 cylinders, as we are now slave to the music.
A Partial discharge is price spiking, but not closing over a Safety line.
A Full discharge is price making a hourly close over a Safety line.
The symbol logo is a reminder to be looking for 2 Full discharges (in a row, 1st safety line 1st and 2nd as second) or at least 2 attempts and a mixed bag of success/failure at the 1st safety line.
The 3rd door is that price fails to clear the E44 and you get a new lower low / higher high first.
Now, are the discharges control functions?
2 full discharges in a sequence is definitely a good entry location for a reversal.
A partial can be followed up by 2 full ones if price fails to touch base @ E16 (E8 gets purchased).
A partial can get a volatility tremor (control function) and call off the whole charge.
A P in general is an obstacle that would either trigger a relapse or is a continuation swing point, the first P print is typically not the end of the road.
It is not a control function, it needs a volatility tremor, but it is definitely an exit which guarantees a pullback to at least the E8 and makes a pullback to beyond E44 highly likely.
The butterfly with the 1.1267 buy level could not had been more accurate.
Trading the Pendulum
The Pendulum Extremis is a fully charged market ready to make 2 discharges on the safety lines.
Obi Wan (E44) is the last hope for a continuation, so put a protective stop loss upon the approach.
A good discharge is a close outside the safety line. A bad / partial discharge is a quick fake out.
- The straight for the hills is an exhaustive run closing beyond the 1st safety line and tackling the second one soon after. Get out right beyond the close outside the 2nd safety line and perhaps participate in the full reversal.
- If the first discharge is a partial one, but the resulting pullback does not come back beyond the E-16, count the following discharge as first and be on the train for the real second discharge from the pull back zone (E16 & E32).
- If the start rolls over to the new LL / HH, the two safety discharges are entry opportunities in the opposite direction for additional new LLs / HHs until a new Pendulum Extremis is printed.
Play partial discharge as this: wait for an M print on RSI2 and put out a stop order 2 pips beyond the swing. Target the safety line – of course, but pay attention to volatility tremors along the way.