The Conveyor

D-bat day.

A divergent pitch is a conscious let go of a direction to free up resources and perhaps come back in with a little less stretch to secure faster progress.

When the same people / other eager participants step back in with force before the 30-min BB – just beyond the 30-min 30 SMA, that may be causing an enough of a surprise that can keep on expanding at or faster than the Bollinger Bands themselves. The time window to place the price on the conveyor belt from the 0 entry seems to be 4×30 mins.

Belt highlights in yellow.

If the above time limit isn’t met, a rally may still evolve: a top won’t be made during a squeeze.

When the 60-min 30 sample BB HL2 drops below 58, the bands are as good as not present. They won’t be able to start containing price until they expand wide enough. To gain overall volatility there would likely have to be a downside open soon.

The very reaoson for the above consolidation not breaking lower was the 4H money flow in need of a divergent beat.

Penetrating the powder box more than half way is clear intention to continue.

The h1 pullback should take price back below the 9-day EMA by 20-40 pips.

Picture below shows the 30-min volatility breaches counted 1-3. Conveyor not activated.

The Counterfore routine source was posted here earlier. 8-sample diectional stochastic readings (between bracket high/low &, current low/high), but I moved down to the 30 minutes frame in the meantime.

Winner, winner, volatility dinner. Downside volatity opening up to the numbers below which are in excess of 30 pips. Once past the buy limit, the volatility becomes l’art pour l’art.