Let’s visualize things for a second.

Channeling is keeping the price on one side of the 9-DAY EMA, a correction is slipping to the Guard Rail on the other side, a deep correction is going a further 60 pips. Extra deep would be 100 – that’s the second interruptd line out.

Now, let’s talk 4H money flow.

Notice the continuation divergence. The money flow is increasing from Hump 1 to Hump 3. It also never reaches ovebought.

Now, let’s see the next one. This one has a reversal divergence, & Hump 3 hits the Extra Deep Correction level. As soon as this happens, price resumes with the original trend.

After this there was a continuation divergence again, and no oversold.

Reaching the 3rd line is still in the Extra Deep Correction field, but yet another reference line 100 pips out.

This tide-in, tide out (continuation divergence followed by reversal divergence) is basically the same mechanism that I referred to as “loneliness and disregard” which have to do with expanding / contracting volatility.

Now, the present.

Looks like a cup in need of a handle.

Continuation divergence. Today the Hump 2 reached into Extra Deep Correction depth. H3 should start from the Orange line, which is the opposite guard rail… That is of course if the tag of the E-9 was not the separator moved out one line to fit the shape. Then that section right before the Magenta square was an H2 (with the Khaki RSI2 continuation divergence auto plot). That would mean no more humps needed on the upsdie.

I would suggest that the down move would have to fake out the last continuation divergence up. Ultimately we could have a move below the Lower Guard Rail by 0-60 pips and that could represent the higher low for reinstating the uptrend. The move from there would be matching this current swing high.

Back to German bands.

De/Vision

Camouflage

        
    guardrailu[i] =  iMA(symbol,0,52,0,MODE_EMA, PRICE_HIGH,i)+FMax*10*Point;
    
    if (Close[i]>guardrailu[i]) {
     gp60[i]=guardrailu[i]+600*Point;
      gp100[i]=guardrailu[i]+1000*Point;
    }
    
     if (Close[i]>gp60[i]) {
     gp138[i]=guardrailu[i]+1380*Point;
    }
    
    
    guardraild[i] =  iMA(symbol,0,52,0,MODE_EMA, PRICE_LOW,i)-FMax*10*Point;
  

    if (Close[i]<guardraild[i]) {
     gm60[i]=guardraild[i]-600*Point;
      gm100[i]=guardraild[i]-1000*Point;
    }
    
     if (Close[i]<gm60[i] && gm60[i]!=EMPTY_VALUE) {
     gm138[i]=guardraild[i]-1380*Point;
    }  
    

Try to digest what I’m about to say here. Yes, you are up 300 pips, but you are not in a weekly uptrend until a higher low prints.

Also, looking at these stats, counter H2 seems to always throw a blank.

H1 – GR / L1 / GR scare
H2 – GR / GR +
H3 – GR / L2 / L3
Now it is all up to where h3 will end up to call a turn or not.