What makes a new support / resistance level?

A deep M

I swear I would never understand people looking at 1m, 3m, 5m charts.

Today we’ll be talking about one of these modern symbols.

The Axel Springer is now firing on 8 cylinders, as we are now slave to the music.

Disco Dis-Charges

A Partial discharge is price spiking, but not closing over a Safety line.

A Full discharge is price making a hourly close over a Safety line.

The symbol logo is a reminder to be looking for 2 Full discharges (in a row, 1st safety line 1st and 2nd as second) or at least 2 attempts and a mixed bag of success/failure at the 1st safety line.

The 3rd door is that price fails to clear the E44 and you get a new lower low / higher high first.

Now, are the discharges control functions?

2 full discharges in a sequence is definitely a good entry location for a reversal.

The P-s

A partial can be followed up by 2 full ones if price fails to touch base @ E16 (E8 gets purchased).

A partial can get a volatility tremor (control function) and call off the whole charge.

A P in general is an obstacle that would either trigger a relapse or is a continuation swing point, the first P print is typically not the end of the road.

It is not a control function, it needs a volatility tremor, but it is definitely an exit which guarantees a pullback to at least the E8 and makes a pullback to beyond E44 highly likely.

The butterfly with the 1.1267 buy level could not had been more accurate.

Trading the Pendulum

The Pendulum Extremis is a fully charged market ready to make 2 discharges on the safety lines.

Obi Wan (E44) is the last hope for a continuation, so put a protective stop loss upon the approach.

A good discharge is a close outside the safety line. A bad / partial discharge is a quick fake out.

• The straight for the hills is an exhaustive run closing beyond the 1^st safety line and tackling the second one soon after. Get out right beyond the close outside the 2^nd safety line and perhaps participate in the full reversal.
• If the first discharge is a partial one, but the resulting pullback does not come back beyond the E-16, count the following discharge as first and be on the train for the real second discharge from the pull back zone (E16 & E32).
• If the start rolls over to the new LL / HH, the two safety discharges are entry opportunities in the opposite direction for additional new LLs / HHs until a new Pendulum Extremis is printed.

Play partial discharge as this: wait for an M print on RSI2 and put out a stop order 2 pips beyond the swing. Target the safety line – of course, but pay attention to volatility tremors along the way.

The only way to succeed as a trader is to make hundreds of great risk/reward trades & become the casino. That is your edge. (SMB Capital)

If you can make 1000% in a short period of time (i.e. a month or two) and don’t forget to pull out some gains, I have nothing more to teach you. No one does. You would make it on a deserted island as long as you have internet, electricity and a trading account with some funds on it.

As somebody smart with a thick accent once said, be best – it sure isn’t worth to be anything else.

The best trader is a subjective thing. Some people would swear on someone who can get large returns with small risks, but this would require having means from start. I’m more of the double or nothing, pull yourself up by the shoestrings, making it despite of having next to nothing to begin with type of guy.

Double or nothing does not mean that I’m a gambler by default, but being a pro gambler is no small feat. Finding and exploiting edges is the only way to improve on your odds.

When I started school, the first thing we had to learn was the alarm chain. This was a route you had to follow to notify all of your class mates during an air raid. After putting down the quill pen, at home there wasn’t always bread without mold, there wasn’t always milk. Sometimes all we had was potatoes growing sprouts and flour. This was the end of the 70s. Until 1989 we were only allowed to leave the country to the West three times per year at a maximum and the amount of currency we could buy was regulated. We first received a landline (telephone) with our 5-digit number when I was in 4th grade. I was the school year who had mandatory Russian lessons until the end of secondary in 1991. Ours was the last tall concrete building facing south 30km from the border. During the bombing of Kosovo we were kept entertained by the ironing taking on the resonance brought on by the explosions.

You may take freedom for granted, capital for granted – I don’t.

So let’s make it official & commemorate the power lift made in 28 trading days. On this day of National Defense, forget the meaning of soaking paper, put on this gas mask and run with me.

Let’s change the name of the business to Morti Finance and let’s design a Zero-Mastodon logo.

’cause I believe in miracles, words & heavy doses. (Neneh + bit of correction by me)

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Inside heads with low counter directional RSI volatility (<55%) will get broken than oppose the direction of the outside head.

Every move ends with a mastodon, but looking back history you may find that they got turned into an S by the time of the settlement of the given time segment.

A mastodon preceded by a zero print is a head. A sequence of outside 3M prints (without a zero) can reverse price equally.

A zero is only qualified if it manages to take price 30+ pips from E44 HL2. A zero can be voided by price touching down on the E44.

Add to your holdings when the momentum turns in your favor.

Monitor counter-directional volatility. An opposing swing move of 25-33 pips (fluctuation size overbought) is a P1, a preliminary tremor of the soon arriving quake of P2; 55, 66, or 75-149 pips long.

A Waterfall (Tremor below the yellow confirmation line) ends in a 67-sample Momentum divergence>

I know where I’m going and where I’m coming from, so here I come. (Second Neneh Cherry quote to finish with.)

Let’s check if you have learnt anything here so far.

What is wrong with this picture (3 points) made by a guy who’s selling a course for $2,500?

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My inspiration can only be one name.

This Math is Crystal. I arrest my case 🙂

Bears can make some money, bulls can make some money before they walk into he market makers’ operated slaughter house.

There is already an asian kid, who can do this better than you. Yet, for an ancient white dinosaur, I think this was a good showing & Dutch would be proud of his favorite Hungarian right now.

The equity curve for the last 28 days:

I do wonder sometimes about which record isn’t associated with my name at my current broker.

What about 2 million percent gains then?

That was 7 dollars turned into 140k. Authentic, pure magic. Rest assured, you won’t be able to open a micro lot out of $18 on a 30:1 ESMA account.

Do not rush things, until now you had yet to meet someone capable of making 1000% not ROI, ROR but ROC. This is where we are at right now.

Sometimes you need a Hungarian to make things right.

Your world may be of bored millionaires ready to put up 260k for Stocks they get put with to make thirteen thousand in 5 weeks, but I seem to exist in an alterate reality which is an eluding cocktail of blood diamonds and strictly come strychnine & I’m in in from the lignite to the ligaments.

The Pendulum is the basis of the Holy Graph.

To reposition the hanging point of swinging axis (~E32) the Sultans of Swing occasionally must reach in with an Invisible Hand with a Visible Touch to apply pull and hold technique.

///E32 down arrow
  
  if (Close[i+7]>E32[i+7]-70*Point && Close[i+6]>E32[i+6]-70*Point && Close[i+5]>E32[i+5]-70*Point && Close[i+4]>E32[i+4]-70*Point && Close[i+3]>E32[i+3]-70*Point && Close[i]<E32[i]-70*Point  && Close[i]>E32[i]-140*Point
         ){
         ObjectCreate("OverDriveObot"+DoubleToStr(i), OBJ_TEXT, 0, Time[i], iLow(symbol,0,iLowest(symbol,0,MODE_LOW,2,i))+40*Point); 
        ObjectSetText("OverDriveObot"+DoubleToStr(i), CharToString(234), 24, "Wingdings",  Crimson);
   }

///E32 up arrow

    if (Close[i+7]<E32[i+7]+70*Point && Close[i+6]<E32[i+6]+70*Point && Close[i+5]<E32[i+5]+70*Point && Close[i+4]<E32[i+4]+70*Point && Close[i+3]<E32[i+3]+70*Point && Close[i+2]<E32[i+2]+70*Point && Close[i]>E32[i]+70*Point  && Close[i]<E32[i]+140*Point){
         ObjectCreate("OverDriveObot"+DoubleToStr(i), OBJ_TEXT, 0, Time[i], iHigh(symbol,0,iHighest(symbol,0,MODE_HIGH,2,i))+30*Point); 
        ObjectSetText("OverDriveObot"+DoubleToStr(i), CharToString(233), 24, "Wingdings",  Green);
   } 

To pull again on the pendulum, the most convenient MA is the E16. A late action would be grabbing a hold at the E44 and little Bruford effort can be applied at E8 or even the E4 to keep up the swinging motion a bit longer.

Every consolidation that takes place away from the axis is a repositioning win for the side with additional length on the price scale becoming possible.

As you can see, it is rather rare to see the price exceeding the overdrive levels – hence my grand exit & 2Far plots.

///Lower Grand Exit
    
    if (i>0 && Low[i-1]>Low[i] && Low[i]<(E32[i]-(ODU[i]+50*Point-ODD[i])/100*42) ){
         if (ExtMapBuffer2[i-1]==EMPTY_VALUE) 
       //  dir[i]=1;
    // Low[i]<ODU[i]+50*Point-(ODU[i]+50*Point-ODD[i])/100*95      
          ObjectCreate("OverDrive2Far"+DoubleToStr(i), OBJ_TEXT, 0, Time[iLowest(symbol,0,MODE_LOW,4,i)], iLow(symbol,0,iLowest(symbol,0,MODE_LOW,4,i))-70*Point); 
          ObjectSetText("OverDrive2Far"+DoubleToStr(i), "Grand Exit: "+DoubleToString(NormalizeDouble(iLow(symbol,0,iLowest(symbol,0,MODE_LOW,4,i)),4),4)+"    ", 14, "Impact",  DarkGreen);
    }


///Upper Grand Exit

    
    if (High[i]>(E32[i]+(ODU[i]+50*Point-ODD[i])/100*42) && i>0 && High[i-1]<High[i]  && High[i]>High[i+1]){
    //&& Close[i]<ODU[i]+50*Point-(ODU[i]+50*Point-ODD[i])/100*8 
          ObjectCreate("OverDrive2FarZ"+DoubleToStr(i), OBJ_TEXT, 0, Time[iHighest(symbol,0,MODE_HIGH,4,i)], iHigh(symbol,0,iHighest(symbol,0,MODE_LOW,4,i))+70*Point); 
          ObjectSetText("OverDrive2FarZ"+DoubleToStr(i), "Grand Exit: "+DoubleToString(NormalizeDouble(iHigh(symbol,0,iHighest(symbol,0,MODE_LOW,4,i)),4),4)+"                         ", 14, "Impact",  Maroon);
    }
    

In the light of the above things you could define a trending/repositioning market as the kind where they are buying the E16-E32 field in the direction of the last move and idling market when they are letting price cross.

The manner of approaching this zone could be taken as a clue: you want the Kennedy Approach to be quick, reach space harbor from a preferably new outer space limit relative to the previous fractal within 3 hours to get excited about future prospects, optimally 2.5 hours & 1 hour would be too quick.

If the manner of approach isn’t satisfactory, then E44 is Obi Wan Kenobi.

I had a blog entry about Axel S and the download link can be found in the ForexFacory EurUsd only forum. Axel S was my attempt to provide Pendulum elevator music for the masses.

Now you have an idea of how I came up the effect-counter effect projection of 1.1354 (zero likes, yes): that was the location of the overdrive line at the swing low. Bats and crabs my ass. Laws of physics.

I have given you the values a number of times. 28 pips, 38 & 2.2x Fluctuation Maximum (7/5 fluctuation size) or a slightly less complicated 83.6 pips for the overdrive.

How do you say Africa with one image without having anything from Africa on it?

The Stochastic reading is the price’s location relative to the current Overdrive lines.

int twodigits = NormalizeDouble(100-((ODU[0]-Close[0])/(ODU[0]-ODD[0])*100),0);

Mind over mattress

Last Christmas I gave you my frizbees…

It was the best of times, it was the worst of times. General Butt Naked proceeded with eating out the heart alive of his latest adversary at the Emerald mine. P. Berlaz mobile currency exchanger was found dead in his own trunk while Gino got shot in the back during negotiating the price of some professional escorts in Germany, but on the flip side it started snowing a bit.

I was driving my fresly released ’78 Mustang after the re-possession due to having been sold stolen a year and a half ago from me. My friend on the back bench was crawling onto the floor and wedging himself behind the seat out of fear that I won’t be able to make the turn with this speed on the slippery road with this rear wheel driven ancient piece of metal cannon. It was probably due to hearing the inconfident “o-ooh” that I let off briefly that put him on the alert. We just passed by the Torpe Auto Trading Lot where if we got the timing and the amount of light right we could had witnessed Zs. Nagyagi lifting up his arm and having four of his fingers chopped off whilst trying to fend off the sword blow from his own wife, but the bullet that followed ultimately did him in. He probably won’t be needing my help again for bringing cars back from Winterthur.

I put my girlfriend on the train earlier to the capital and was headed to meet my other girlfriend to hang out with playing pools and perhaps eat something before she would start her shift at the Caligula brothel. I might be stopping by there tonight, although Attila the bouncer may not let me in if he’s not in the right mood. He would be going to prison soon for beating up someone badly… well, who is the trouble maker now?!

Being a fugitive of the army for a no show and being constantly sought by police for various white collar crimes, I used to not give 2Fs about anything.

The one thing that seems to be slipping is the chronology.

This Christmas, to set me from tears, I just remember the good old care-free days of living on Bourbon, Fontex and pain killers and try to keep out of this Pan-Demonic existence.

I suggest you do the same. Peace out & sauerkraut.

An ex policeman ex coworker told me this once:

“There’s more to life than painting floors” – this should be my Epitaph really, given that unlike him, I have not been in a coma and they did not transplant a nerve from next to the heart to the shoulder to be able to operate again, so obviously, I wouldn’t know.

If you like simple things, this is for you. (1h Chart)

+ – points can be given for

• Qualified zero print (RSI2< 2.5 or RSI2>97.5 25+ pips away from E44)
• Momentum divergence (14, 67 sample sizes) or RSI2 divegence
• Price beyond the safety lines (+ – 28 pips from E32)
• 26-sample new high / low
• + – 2 points for qualified wicks

So that’s an absolute 6 on the temperatűr scale. A 4 is rather persuasive in most cases to take a position. A 6 needs no arguing whatsoever.

A 3 is a rotation: good enough for a continuation entry and the raining direction has to be covered.

I would give a squeeze low/high 5 points.

It’s all about the Pendulum, baby!

What size is precise?

Let’s gather around the fire & gather all we know about Wave 2s.

Wave 1 kind of declared itself to be just that – see the last Blog entry about Waterfalls.

• A Wave 2 would come back through the closer end of the E-67 Band
• A Wave 2 would likely fake out the second Doji made on the way here by 4-9 pips
• A Wave 2 correction may take the 9-sample Hourly Slow Stochastic Oversold / Overbought twice before it ends

When price was up here, could you have made an educated guess as to where Wave 2 was likely headed?

Doji #2 faked out means going 4-9 pips further. So you can already say that the support zone is 1.1268-1.1263. All you need to do is let go of complicated feelings, know that there’s a price to pay, then reach out & touch faith for your own personal Wave 2.

So what is exactly happening with these dojis?

During those hours there was an even exchange. Someone was picking up all orders at market with enough care for not moving price too much. Perhaps they already unloaded some / half of their holdings on the last rally, perhaps not. When price returns to their entry, they step up again to round up the holdings / improve a little bit on the entry price with cost averaging. Or they are already out completely, but would be interested in going in again at the same level. Either way, that’s the typical offset.

How can you say Depeche Mode with 3 videos without saying Depeche Mode anywhere?

Apparently there was Kenny Josh version as well.

Don’t be so devotional emotional.

The original Macdulio said about me once that I say 3 words with 2. That sure seems to be my M.O. (He died st 47. I’m 48 now.)

I may not have figured out how to make money in this life, but I certainly had some relevant ideas about large percentages.

The Momentum divergence by now goes without saying.

Like I said, the waterfall selling once initiated by a tremor (wing flap of the butterfly) below the reversal confirmation line, nothing can stop it from becoming a cunami (c=ts). Nothing, but a 67-sample momentum divergence (green).

Once the flies are buttered up in the right place, every new swing high would be a lower one.

Whilst Wilbur wants to kill himself,

Walter is unstoppable

Walter can’t stop falling (measuring leg kick-back Tremor below the reversal confirmation level)

Walter becomes Mr. Glass for a few days. He is breaking things left & right, and he can’t seem to get up in a sustainable manner.

Walter is erected (67-sample momentum reversal divergence)

The last time Walter had an erection, he could only be stopped by two qualified Zero-Mastodons and between these he managed to regain his stamina by popping a blue triple M pill. The amount of desire could almost satisfy 2 full grown wooly Mastodons!

A correction requires the first, measuring leg arrive with 2/3 of fluctuation-size volatility (a tremor).

By the way, this is how you can use the 15-MIN ATR projections of mine:

You see the price struggling at 1.13, you look at the indicator that shows a 1.1344-1.1364 for a Wave 1 as prospect and so you don’t start shorting immediately.

Let’s face the music: do bitter flies dream of electronic horses? – this remains a mistery.

There are 3 hard exits on a hourly chart.

1. Qualified Zero displacement

A qualified zero is a >97.5 or <2.5 RSI2 print with its outside fractal 26+ pips away from the E44. I plot the qualified zeros in colors and the non-qualified ones in gray.

if (Low[i+1]+260*Point<iMA(symbol,0,44,0,MODE_EMA,PRICE_MEDIAN,i+1)) 
 ObjectSetText("Panaceadc"+DoubleToStr(i), "0", 42, "Arial Black", clrRed);
 else ObjectSetText("Panaceadc"+DoubleToStr(i), "0", 42, "Arial Black", clrDimGray);

Example of non-qualified zero followed by a qualified one.

A qualified zero print is going to be likely followed by a divergent M print, which as part of the combo I call the Mastodon and has the green / red extraction icon. The Mastodon is the second point of the M axis projected from the last Qualified Zero print. The usual displacement suspects are 7, 12.5 and 20 pips, but if none of these get a fill, take your ride from the opposite end of the Mastodon candle not to miss out.

if (zerodn[i+1] && Low[i+1]<iMA(symbol,0,44,0,MODE_EMA,PRICE_MEDIAN,i+1)-250*Point){
          ObjectCreate("ObjecSZ"+DoubleToStr(i), OBJ_TEXT, 1, Time[i+3], 49); 
          ObjectSetText("ObjecSZ"+DoubleToStr(i), "¼: "+DoubleToStr(NormalizeDouble(iLow(symbol,0,iLowest(symbol,0,MODE_LOW,6,i+1))-70*Point,4),4) , 11, "Impact",  Navy); 
          ObjectCreate("ObjecSS"+DoubleToStr(i), OBJ_TEXT, 1, Time[i+3], 39); 
          ObjectSetText("ObjecSS"+DoubleToStr(i), "½: "+DoubleToStr(NormalizeDouble(iLow(symbol,0,iLowest(symbol,0,MODE_LOW,6,i+1))-125*Point,4),4) , 11, "Impact",  Navy); 
          ObjectCreate("ObjecSX"+DoubleToStr(i), OBJ_TEXT, 1, Time[i+3], 29); 
          ObjectSetText("ObjecSX"+DoubleToStr(i), "¼: "+DoubleToStr(NormalizeDouble(iLow(symbol,0,iLowest(symbol,0,MODE_LOW,6,i+1))-200*Point,4),4) , 11, "Impact",  Navy); }

It is important to know that a quick return to the E44 after a qualified print can disable it, make it void during a run with good momentum, so the 3 displacements listed should be ignored as a new Zero is going to override these.

A non qualified zero can still yield a tremor print, so it can reverse price – see the second entry on this.

2. Tremor of volatility

A volatility tremor is a preliminary signal of a bigger earthquake that would arrive with a larger landslide.

A tremor is a counter directional swing with enough volatility to make price travel 70%+ of the instrument’s fluctuation size. If this swing crosses below the E44 you get a waterfall, meaning no higher high / lower low print would happen before the landslide. The ultimate distance in this case is TBD and you should go in in the direction of the tremor at market and round to full size upon breaching the swing terminal and / or add to your position at better price levels.

if (iFractals(symbol,0,MODE_UPPER,i)){
      j=i-2;
      while (j>1 && j>i-5){
         if (Low[j-1]>Low[j] && Low[j]<Low[j+1] && High[i]-Low[j]<340*Point && High[i]-Low[j]>250*Point) break;
         j--;
      }

An example of not expecting a higher high after the tremor:

Examples of the head expected to be a higher high & the typical travel lengths in white below.

Examples of tremors away from the E44 with 75+ pips of corrections (149 on the 2nd).

3. Triple M (Image above)

A triple M is when price isn’t able to reach a Zero oversold/overbought condition, but it ends up with 3 attempt falling shy from a Zero.

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The Zero plus momentum (67) continuation divergence was a soft exit and so was the back test of last week’s pivot – a different lesson.

The current, qualified zero displacement is menu item #1, the real McCoy – although it is the inside version for it did not print a new 26-sample lower low I stand corrected, this is an outside head, went 1 pip lower than the previous one.

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How would you know that price is going to be going higher from this consolidation?

1. Price found buyers in the green box (twice)
2. Price is above last week’s pivot (magenta)
3. The last outside M was on the down side (butterfly)
4. Price is above the upside reversal confirmation line (yellow)
5. The triple M attempt on the upside was not an outside triplet (no 26-sample new high was printed)
6. The 67-sample momentum is above 100 = bull pullback
7. People that went short in the orange wick are under water – the 14-sample momentum is turned positive by breaking above that very candle
8. Think of all the people trapped with their shorts below 1.13 with the 1-hour quick trip down to 1.1235

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2 steps forward, 1 step back image

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These people calling for 1.09 remind me of the email I got here in Slovakian from someone telling me that Eur would go to 1.25 and 1.32 in a rather hectic fashion last June.Momentum just reached neutral (100), price is sitting on the 9-day EMA after a slow motion bull pullback, the hourly just printed a Zero-Mastodon and you want to short, because everyone is always trading the last trade. The inside head would be broken on the way up.

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