This is another demonstration of how well the dual timeframe weekly and 2-day setups and signals can operate together.
Again, one of the reasons I like the Genesis-based 2-day chart is because very few other people are using a 2-day timeframe and therefore it gives us an opportunity to analyze the market from an under-utilized perspective.
Let's begin our Ocean analysis from a weekly chart where we can see that in mid April AMAT dropped below its NMA and Fast NMA moving averages (red down arrow on prices), and NMC crossed below the zero line.
Note also that within a couple of weeks the Fast NMA also cut below NMA for the first time in almost a year. All of these Ocean-based events are signs of a market turning bearish.
An ideal scenario at this point would be to see a Cross Kiss occur from NMC and to be substantiated by NMA resistance. Remember that the Cross Kiss formation is defined as the first ZeroHit from the opposite side after a zero line crossover—when preceded by a long duration of NMC on the other side of zero.
In fact that is precisely what occurred in the week ending May 28th (first down arrow labeled Cross Kiss on NMC pane). NMC had remained above zero for almost a year, then crossed below zero as described above and generated a ZeroHit setup and short entry.
Also, at the time of the Cross Kiss, NMS (bottom pane, dark green) is trading well below zero and below both of its moving averages (Fast NMA in blue, NMA in red), which are also downward-sloping and functioning as resistance to the NMS.
Although this example is predicated on the ZeroHit setup of May 28 it's worth mentioning the second ZeroHit setup:
Note that the secondary ZeroHit of June 25th (red down arrow) generated an Ocean-based hidden Add On entry as part of a compound signal prior to its own entry trigger.
This hidden Add On (taught at the Ocean workshop) allowed another short entry with less than half the risk required of the first Cross Kiss setup, and generated more than 80 cents of additional profit prior to the rule-based second entry. Many Ocean Masters have said that this technique alone has tremendously helped their trading.
All of these Ocean formations are indicative of a market with a decidedly bearish trend, so it's logical to continue the analysis by rolling down to a lower time frame to identify another series of Ocean setups where the risk might be only a fraction of that required to initiate the trade at the weekly level.
(This is the end of Part 1. Go to Part 2.)
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