There wasn’t much to figure on the go long condition: with upwards wind the municipal trench got dipped into. The other 2 possible conditions, the 120 stoch dip below 50 or the MFI going oversold did not occur.

Now, since the previous day went into the W3 orange box (and carefully missed the far end by more than 5 pips to signal wanting to continue after a consolidation), there is a second roll on the dice.

A divergence would look like this: a stop before the new W3 box.

Since the close end of the box is at 1.0948, the Goldilocks level is ten pips closer. You want to be scaling out between these two numbers.

Goldilocks is in yellow.

There is a limit defined by the event of tripping over the upper safety line 58 pips out. This comes in at 1.0945.

All of these numbers have been settled for at least a day.

The money flow reversal’s trip over level is 1.0947 – you would like to see it go untoched.

During the measuring leg the 2x buy level got tripped over, but price only made it to the first mile stone at 16 pips out before the correction.

It would be logical that the divergent leg would miss the 2x buy level for it would have to display relative weakness.

Why the divergence? Because this is an ABC correction up. The daily RSI2 got into the reversal zone gor the 2nd time, see Nick Rhodes.

What’s next? The lower safety line could be re-visited or undercut by a statistical 34 pips for a leg down.

The weekly R1 has been at 1.0944 for the last 3 weeks (see QuarterLoo). Perfect spot to end a Wave 2.