Mike & The Market Mechanics

I used to say that I was a coinciDentist.

The Trading Masterclass #2 gave you ideas about how to spot a pending capitulation, the capitulation in progress and #3 talked about a possible sequence of targets and the best entry.

Now, let’s look at other factors such as percentages.

The swing back up scored between 40-50% of the fractal to fractal swing.

Less than 50% sounds like a continuation down, but not so fast, Mojo Jojo. A swing high was taken out making it even.

The question mark is on the rolling pin candle calls into question the wide range: 150-pip day from an instrument that is statistically projected to make 80% of 80pips 80% of the time?! That’s more than double.

The actual move was in a 4-hour span, almost hitting the pendulum’s overdrive bands on both sides.

On 4h the pendulum’s axis is 32/4 = 8. Another not Fibonacci number.

After the range got printed, the next 4 attempts of going outside were immediately thrown back in.

Now if the first move was a failed move, then the current direction is down, and this attempt back inside the range is going to get rejected – so goes the speculation.

The leg itself did not take out any daily swing highs and barely pierced through the 40% line. I think falling into a consolidation range could save the day.