macdulio3

The Trip-Trip Traps

Raindrops are falling in the brain…

Living’s in the way we die. (Few understand this).

What is happening?

Does this look good?

Looks O.K.

Does this volatility crush / mean reversion freak you out?

Not really.

Yet.

We failed this week and the last week to leave the oversold level behind. In fact, we are due to re-embed come next week. Seasonality might just get a punch in the face.
Does an ABC correction sound bullish followed by today’s candle making a lower high and a lower low?

Blinded by the light?

Oh yeah, back to the topic. Traps. ET.

ET is an 18-hour higher high with RSI2 reaching above 95.5. An Excessive move (a drive) ultimately results in a thrust, that is in line with the current volatility. The first print counts (and embedding disqualifies).
Think of it like this: if volatility is way high, you can have a thrust from the trip wire at 66+ pips. One step down in volatility and you are looking at 55+, then 44, 33.

Now, counter moves fizzle out on two Excessive peak prints & their initial drive is usually a subdued acceleration not achieving a 30-sample bracket break on the 5-min.

The thrust of the correction is also volatility based. 26+ pips is high relatively high, 16+ is two steps down, then 8 and 4. The highest reading would just exceed 32 pips.

So is this setup bullish then? Remember the E+E. Look at those trip wires right above. Think of the embedding come next week… and hedge for crying out loud.