De Mora-Lisa

From the beginning of time, humanity had only one question: when is the future?

Ever since there’s been stock market, a second, less articulated mutation of the same virulent question was formed: Where does an impulse wave end?

Let’s set the stage. Imagine it is last Friday, the market makes a cover low with optimal daily stochastic reading, and all is looking good for a corrective leg ending and a rally starting.

Green cover low got downgraded to lime cover low due to the next day’s muted accomplishment.

So market makers got creative. They wanted more longs on their books to be able to hand them out to the suckers on the way up, so they gapped the market up. Nothing too crazy, but was enough to make the weak hands part from their longs at a break even or worse. The upside got limited by these deeds: when the gap high was exceeded on the second up leg, the new low was already a secured prospect.

If you pay attention, although the resurrection candle came with a higher high and a higher low, it was unable to exceed the highs of the previous 2 candles.

With this fishy, meet my hook act they turned a corrective wave into an impulsive one with elusive ending summoned.

If you look at the previous divergent endings…

The market undercut the low by 56 pips 13 trading days later for a swing low.
The market undercut the lime cover low by 42 pips 7 trading days out. The upside from the first lime C was 202 pips.
The undercut of the lime cover low was 77 pips 5 trading days out. The total upside was 220 pips from the lime low, but it cost 41 trading days to get there.

…what you would find is that the swing lows do not coincide with cover lows, they simply choke without further impetus and the move back up looks like a bloody mess dragging on seemingly forever and getting nowhere fast. Instead of a clear cut correction in the neighborhood of 250 pips, they end when the market becomes overbought enough (market makers managed to dump their longs) and the market is still within a hundred odd pips away from the swing low before starting the next dump and pump scheme.

Gapping the market enforces transactions at the open with stops & target hit.

As you can see, after the divergence is set, the market is not going to drop much further, but whether it is going to be 2 or 77 pips more is impossible to say. If you go short, you are playing with fire, if you go long, you may be underwater for a week or more.

Nick Rhodes is an RSI2 based animal.

//////////////downside magenta   
   
   else if (RSI2[i]<5.3){
         score[i]=-3;
         ObjectCreate("Nick"+DoubleToStr(i), OBJ_RECTANGLE, indicator_window, Time[i], 4, Time[i+1], 2);
        ObjectSetInteger(0,"Nick"+DoubleToStr(i),OBJPROP_COLOR,clrMagenta);
        ObjectSet("Nick"+DoubleToStr(i),OBJPROP_WIDTH,8);
        
         if (Period()==1440 && iStochastic(symbol,0,18,3,3,0,0,0,i)<18 && score[i+1]==-3){
                     ObjectCreate("Penton"+DoubleToStr(i), OBJ_TEXT, indicator_window, Time[i+1], 3.5); 
                     if (iStochastic(symbol,0,18,3,3,0,0,0,i)<8.5 && iStochastic(symbol,0,18,3,3,0,0,0,i)>4)ObjectSetText("Penton"+DoubleToStr(i), "      "+DoubleToString(iStochastic(symbol,0,18,3,3,0,0,0,i),1), 8, "Impact", MidnightBlue);  
                     else ObjectSetText("Penton"+DoubleToStr(i), "      "+DoubleToString(iStochastic(symbol,0,18,3,3,0,0,0,i),1), 8, "Impact", White);  
                 }
        
        if (i>0 && RSI2[i]<2 && RSI2[i-1]>5){
          ObjectCreate("Nickergence"+i,OBJ_TREND,0,Time[i+1],Low[i],Time[i-1],Low[i]);
                 ObjectSetInteger(0,"Nickergence"+i,OBJPROP_RAY_RIGHT,false);
                 ObjectSet("Nickergence"+i,OBJPROP_COLOR,clrMagenta);
                 ObjectSet("Nickergence"+i,OBJPROP_WIDTH,5); 
                 ObjectSet("Nickergence"+i,OBJPROP_BACK,1);

Trading is just an illusion. I just showed you an example of turning a corrective wave into an impulsive by the simple act of rigging. Good thing no one’s ever asking the question: what is moving the market when there are no transactions being made?

Fundamentals must be the most exact measurement of value then. They can even make the price gap! George Schwartz Soros and his reflexivity tss! Go fundees!

Think twice, do you wanna be a Kennedy or a Fundamental?

Is the fundamentalist a form of a mentalist?

Here’s an E.W. dilemma for you. Without indicators, this move up looks like an ABC.

With indicators, you can see that the stochastic reading showed excess 3 separate times.

Was this 3 or 5 waves up?

W-wait a minute!

Us3: market makers, fundamentals and the Hannities.

So yea, I needed every brain cell I had to figure out what the current program was.

Sell double volatility breaches (preferably divergent legs) as long as they are made below the window envelope and target a new lower low (216 sample on 5 mins). Brother Bollinger gets missed by 5-10 pips every time.

////lower excess
      
      if (iLow(symbol,0,iLowest(symbol,0,MODE_LOW,216,i+2))>iLow(symbol,0,iLowest(symbol,0,MODE_LOW,2,i))) {
         ObjectCreate("Miezzz"+DoubleToStr(i), OBJ_TEXT, indicator_window, Time[i], 4); 
         ObjectSetText("Miezzz"+DoubleToStr(i), "X", 42, "Impact", clrPurple);  

E-X Machina. The Window Envelope (14 samp) is at 1.0918 this week.

Now I feel violently happy.

When you know that a Wave 3 would come in starting 1.0915, then you know that a wave 1 is likely to fizzle out 20 pips short of that. I gave you the 15-ATR Targets Pro for a reason. Use it.