Notice the red circle, how the moving average doesn't cross back bullish. The issue is V Bottoms retrace back 50% but this wasn't the movement it appeared to be. Because the average doesn't help confirm a high we should omit this price. Now look at the red arrow. This high retraced a qualifying ~75%, and signaled with the moving average; this suggests how to...
Here, the Ratios provide a hidden gem. The spx acceleration should become bullish.
This is my version of walking a Bollinger Bands. I use an Ehler instantaneous 21 BB. The settings for the Bands are 0.75 deviations (detrend at +0.75), zero offset, no lower band, no basis. The result is the solid red moving average. Close your bull after a dow theory closing violation under the uptrends' detrending signal.
Notice the vertical line: spx finds a bullish closing violation with matching volume...the bar closes bullish with huge volume support (strike bullish and ride the gap?).
Here is cross-sectioned candlestick shadow and quantified amplitude of the shadow. The indicator marked with a horizontal ray identifies the "strength," or "intent," of the continuation tweezer pattern. Unfortunately, a trader should wait to put a bearish resistance under the tweezer support swing.
Here at the top, the pattern broadens to R3 (100%)...starting a 100:50:100 (R3:Pivot:S3) algorithm ratio pattern. When the price pulls back from the disjointed window channel, it should bull to a higher R3 because of the ratio signals with the horizontal events. If the price confirms on S3, be long term bullish!
Here a swing forms. The bearish engulfing pattern is followed by a doji harami pattern...there are other patterns but they are incomplete. The cloud helps time entries for late resistance. If the swing is reversing bearish, fill bearish under the engulfing swing -- on the bearish side of the cloud. Note: the lows are first order volatility, so omit them...the...
Here we have a 16 bar lag. The price breaches bearish and then beltlines bullish, and the red cloud continues bearish around the bullish low. Note: a signal for a lower low but price is a higher low is a reverse bullish signal. This example is a reverse bullish divergence signal methodology.
Look at the recent high...an eveloped high bar (top band) and an inside along side it. While considering the moving averages crossing bullish, the bear signals are evident; bull with caution, if at all.
Notice the recent highs, they have a need to "mother bar" past the Bollinger Bands to signal a higher swing zone. Elliott wave suggests waves move in five or three movement waves, I see two correction waves...the third should happen. In the recent median, the MAMA/FAMA remains open during the attempted bear move. The volume accumulated denoting support. It is...
Here, I fixed my aspect ratio to 90 degrees. Added the square, duplicated time, and used symmetry for the next box.
Notice the Alligator overlay, and the declining High fractals while the Alligator increases (Lower Price/Higher Indicator). With the steepe Low above the Teeth, a bear exit requires standard divergence: not reverse bearish. With this exit being flawed, price should return to the false out...the Highs become the bull buy line...the false Low exit is now the bull...
Consolidations are range bound. The rules for a breakout (impulse) is to retrace it to confirm the exit, and then strike the low signaling the continuation...the beginning of a trend. Notice the red arrow. The impulse exited a range of a trending zone, but the retrace failed and there wasn't a continuation. That is why to wait to strike bullish reversal....
Notice the swing areas, and the volume indicator. Had the indicator been used for "trend strength" it would of sold off. Rather, use the Accumulation/Distribution to identify bullish or bearish swings...if the volume increases or decreases lower in the consolidation zones.
During a scalp, the MacD shows Standard Divergence but the 8 Bar M.A. shows Continuation!
I reverse engineered the Renko Boxes and found a relative range. Using the Highs, the lagging stop is 2.2%, and same with the Lows. I separated the two, and it seems like a winning strategy: modern too. Also, my undeviated macd, and both derivatives.
I have hammered out the aspect Ratios for the ATR Renko. I utilized a 100 bar ATR, for a stable average the bars move around. Being Renko boxes, a matching 100 frequency to the ATR amplitude was false; I needed twice the amps (length) to the frequency (width)...a 50 aspect (100•50). The results confounded my other methodology! The ATR has a bullish pattern,...
An example of Renko and Ratios...is it predictive? It is also an Ascending Head and Shoulders Pattern forming.