Clue’s Clues

That’s how my daughter used to call the Blue’s Clues.

You probably don’t realize how bullish this setup is about to become:

But let’s make a step back first.

The bull flag becomes quite obvious on the daily chart.

The Stochastic 18,3,3 HL2 SMA’s K and D lines are both above 80, and have been over 80 for the second day in a row. If they both stay overbought, the market would be considered embedded. What does that mean? That breaks are a buy until you see one of the stochastic lines close below 79. By buy I mean a higher high is simply guaranteed. So, tomorrow is the big day to see by how much we can surpass the high (I’m still looking at 1.1528 as the separator between the daily blocks, so I think it is more important than that 1.1484 high, but of course we cannot know before hand.) As you can see, at the previous swing high in the middle of January embedding did not occur, for there was no 3rd day when both the K and the D lines were above 80. There is a good distance to the top, 60 pips from here sounds like a very good deal.

Now, back to the first image. First thing to notice is the purple line, which is the E89 HL2. Who is conscious of this MA? Smart money, professional traders.

Second thing to notice is the absence of lower lows. They are forcing everyone to chase this move up. No discounts would be given.

As good old Dutch used to say, when you have higher lows, the highs will take care of themselves.

Now, the next thing on the bottom indicator (the RSI with the deviation bands) has now a new line on it. I use the 20 SMA of the RSI14 for splitting the Money Flow. I ran a 5 sample average on the 14-sample MFI for an early bird special. As you can see below, this changes before the SuperTramp does.

I grayed out the MUSTs where the distance from the E-44 exceeds 100 pips.

SuperTramp is on the slow side, and you need 5 of the new color for the transformation to take place.

Currently we have 8.

Watch how the RSI is diving below the main line (middle of the 5) . In this field the indicator would only prompt buy signals.

The reason you did not get any sell signals is that the incline was not steep: I’m looking for a 2-sample cross over & peak out above the main line or a 3-sample cross outside the 2nd upper line from at least one below.

(RSI[i]>main[i] && RSI[i-1]<RSI[i] && RSI[i+2]<lower[i])


(RSI[i]>upper2[i] && RSI[i-1]<RSI[i] && RSI[i+3]<upper[i])