The first thing to appreciate is the nature of volatility expansion-contraction.

After the first push down (using the effort signal from the previous post), which expands the Bollingers, there comes a phase of contraction, when the opposite end gets tested usually 3 times before the next expansion leg down.

Yes, this time it was a bit different. I did say that the correction (at a minimum) is going to last until the two volatility lines converge.

Below is an earlier example.

The current move should had started the contraction dance, but the SOB was broken to the upside (yellow-purple line at 1.10).

This was a bit unexpected (the SOB tends to be like let, not-let, let), but then again, the convergence also happened above the municipal trench.

This move could be a recess to the Safety line –

the Partial discharge triggered the move to the 2.8

Or a plain old Wave 2 (bow back) to the top of the MA ribbon.

One weekly close outside the resistance line may end up being a fake-out.

That yellow divider between a regular weekly swing and an intermediate swing may end up proving to be resistance.

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4 months, 400 tracks produced & published. Already feeling like I was granted an extra life.

Album #20