Run away with me in the dark…

A gap is brought on by one sided positioning in the premarket. We have talked about an exhaustion gap here earlier (telltale of a final wave), now we are to discuss a run away / break away gap.

These gaps, that usually don’t fill (partially at most) are telling you about the likelihood of a Wave3 in progress.

#1 start appreciating the fact that price is failing the same color for the 3rd time.

The 105-pip swing point displacement has a color, it is SlateBlue.

//90-sample low & high
   
if (iFractals(symbol,0,MODE_LOWER,i) && Low[i]<taxi[i] && Low[i]<iLow(symbol,0,iLowest(symbol,0,MODE_LOW,90,i+1)))
      dermia[i]=Low[i]+1050*Point;
      
   if (iFractals(symbol,0,MODE_UPPER,i) && High[i]>taxi[i] && High[i]>iHigh(symbol,0,iHighest(symbol,0,MODE_HIGH,90,i+1)))
      dermia2[i]=High[i]-1050*Point;         

The 8-hour EMA of opens has a color too, Orange.

You don’t know what you are doing without these plots? Exactly.

#2 What is it that should never happen if the gap means a reversal?

It should not take out the end point printed at the open.

This is where you must hedge. Feel free to apply 2x size of the holdings.

#3 As for targeting, the first thing to appreciate is the steepness of the Zero-Mastodon trendline (Blue) that was made by wave3 of Wave3. wave5 of Wave 3 would have to fall short of it, but not by a lot.

You already know that the final beat would arrive with an RSI2 reading within 10% of the peak RSI2 earlier.

The last thing to appreciate is the Goldilocks level for targeting, as wave5 is expected to be a tad weaker than a wave3.

///Atravg is 3-day ATR
 BowBuffer=(iClose(symbol,15,i))-ATRAVG[i]*1.30;
   BighBuffer=iClose(symbol,15,i)-ATRAVG[i]; 
   BowBuffer2=iClose(symbol,15,i)+ATRAVG[i];
   BighBuffer2=(iClose(symbol,15,i))+ATRAVG[i]*1.30; 


ObjectCreate( "FUNNATURE"+5, OBJ_HLINE, 0,  Time[0], BighBuffer+100*Point);
               ObjectSet("FUNNATURE"+5, OBJPROP_COLOR, clrYellow );
               ObjectSet("FUNNATURE"+5, OBJPROP_WIDTH, 6 );
               ObjectSet("FUNNATURE"+5, OBJPROP_RAY_RIGHT, false );
               ObjectSet("FUNNATURE"+5, OBJPROP_STYLE, 1 );               
               ObjectSet("FUNNATURE"+5, OBJPROP_BACK, 1 );
   ObjectCreate( "FUNNATURE"+6, OBJ_HLINE, 0,  Time[0], BowBuffer2-100*Point);
               ObjectSet("FUNNATURE"+6, OBJPROP_COLOR, clrYellow );
               ObjectSet("FUNNATURE"+6, OBJPROP_WIDTH, 6 );
               ObjectSet("FUNNATURE"+6, OBJPROP_RAY_RIGHT, false );
               ObjectSet("FUNNATURE"+6, OBJPROP_STYLE, 1 );
               ObjectSet("FUNNATURE"+6, OBJPROP_BACK, 1 );   

Xtension fill at 1.0173 – new extension figured (vol. crush won’t allow it) – currently the counter effect move is printing.

Volatility is on the rise with a 5x+ FMax print. A counter swing on the opposite side of the 9day EMA could see a 7.5-9x print (largest stretch I’ve seen was about 10.5x).

Galileo Fx

In closing, let’s talk about the latest auto trading scam on YouTube that comes on between the buffoon Greg Secker and that other dude claiming to have worked at Barclays.

You see 3 trades running, 500 lots each, 3 pairs – all long USD against another currency. No stop losses anywhere, what could possibly go wrong?

To be able to open 500 lots at once, you need a broker that does not have the max lot size capped at 50 or 200.

To be able to afford opening 500 lots, you’d need about 120k on a 1 to 500 leveraged account, or 2 million at 1:30 leverage that is the cap for European traders.

Let’s say you do have 120k and find an offshore Australian broker. Let’s say the auto trader opens 500 lots long before a close on Friday.

If it is early May, 2022, you may experience a rude awakening on Sunday evening as the market gaps down 140 pips and the broker magnifies the scissors’ openining by pushing the spread to 200x and stops you out with some extra slippage added.

160+ pips of instant loss of (minus 800k). You owe the broker 680k. What do you do now?

It is nice and cozy to play around with a demo and large numbers, but it is entirely different to put real money on the roulette wheel.

I had 60-80k on my account at times, but never held more than 12.5 lots naked or 15 lots for a hedge.

Go, read all the fake reviews and look at all the fake statements to feel completely stupid.

If you belive that auto trading would magically work for you in Forex, you obviously haven”t read my entries on the subject.

Angel Eyes in 2022

Why Auto Trading is not a Viable Thing on MT4?

Run away from who’s house?

You have just seen 5 waves up. Is a pullback a buy? No. Is the first correction a buy? No.

Is the second correction a buy? Maybe. Is the New Wave territory a buy? Maybe, if price does not stay outside.

…