Into The Unknown

I have identified 3 kind of turns.

All 3 require price having moved outside the range.

The V-bottom at 0.995 belongs to the first group.

Second Color usually means price printing a high/low outside the range but closer than 25 pips, then a high/low in the 25/50 band and never going beyond this zone.

This left shoulder turn gets confirmed by price going back to the overbought level, then printing a Head at the zero level.
This is another Second Color example. More than 1/2 of the turns belong here.

The 3 of the same Color has two different variations.

Var A: The Taper

The taper reaches a signal depth, but fails to carry on with the trend: i.e. no more lower lows / higher highs. This example belongs here and not with the 2nd color ones due to price having a hard time coming back into the range at first. This is not a common one at all.

Var B: The Divergence

The last down move ended this way. It went green 3 times and after finishing with the measuring leg, printed a divergent leg that got really close to the oversold end of the range.
Another example. Price went magenta 3x. Copy and paste from above. After 3 colors of the same, this has the higher likelihood.

Practice questions:

Which category does this example fall under? Second Colour/Taper/Divergence?
3 examples at once. Which one was the Taper? What were the other two?
Have you seen a 2-color top? Could this be turned to 3 of the same taper / divergence? Why not?

Color understanding

The gray means close proximity to the E121 hourly. I don’t usually count it as a color, but it does play as a color change as a second color.

The magenta is 64-100 pips away outside the range.

   if (High[i]>NBEU[i]) {ObjectCreate("Zingende"+DoubleToStr(i), OBJ_TEXT, 1, Time[i], 58); ObjectSetText("Zingende"+DoubleToStr(i), CharToStr(110), 18, "Wingdings", clrTeal);
         if (High[i]>NBEU[i]+250*Point && High[i]<NBEU[i]+500*Point) ObjectSetText("Zingende"+DoubleToStr(i), CharToStr(110), 18, "Wingdings", clrRed);
         if (iHigh(symbol,0,iHighest(symbol,0,MODE_HIGH,25,i))>iHigh(symbol,0,iHighest(symbol,0,MODE_HIGH,60,i+26)) && High[i]-iMA(symbol,0,484,0,MODE_EMA,PRICE_MEDIAN,i)<640*Point) ObjectSetText("Zingende"+DoubleToStr(i), CharToStr(110), 18, "Wingdings", clrGray);
         if (High[i]>NBEU[i]+640*Point && High[i]<NBEU[i]+1000*Point) ObjectSetText("Zingende"+DoubleToStr(i), CharToStr(110), 18, "Wingdings", clrMagenta);
      }
   else if (Low[i]<NBED[i]) {ObjectCreate("Zingende"+DoubleToStr(i), OBJ_TEXT, 1, Time[i], 34); ObjectSetText("Zingende"+DoubleToStr(i), CharToStr(110), 18, "Wingdings", clrSalmon);
         if (Low[i]<NBED[i]-250*Point && Low[i]>NBED[i]-500*Point) ObjectSetText("Zingende"+DoubleToStr(i), CharToStr(110), 18, "Wingdings", clrGreen);
         if (Low[i]>iMA(symbol,0,484,0,MODE_EMA,PRICE_MEDIAN,i)) ObjectSetText("Zingende"+DoubleToStr(i), CharToStr(110), 18, "Wingdings", clrGray);
         if (Low[i]<NBED[i]-640*Point && Low[i]>NBED[i]-1000*Point ) ObjectSetText("Zingende"+DoubleToStr(i), CharToStr(110), 18, "Wingdings", clrMagenta);
        }

Zingende means singing

Draad means drót.

The first nuclear reaction is the deepest.

Just don’t forget the shape.

Into the well known

From oversold to the force field of the Lema

LS: 140, H: 100, LH: 80