Here we see a 2-day chart where the range of each 2-day sequence has been combined to produce a single bar.
Since the weekly NMC setup occurred as of May 28th, we turn our attention to that period on the chart and see that NMC was generating a 3-bar sequence of consecutive ZeroHits beginning May 25th and extending thru June 1st.
This setup then triggered an Ocean-based entry as prices began their decline. As a result of rolling down to this 2-day chart and by using the entry and initial stop rules taught at the Ocean workshop, we were able to add more that 85 cents of profit potential to the trade while reducing the initial risk of the trade by more than 50%.
Note the small arrow one to two bars (2 to 4 days) after the first sell signal. This was yet another NMC setup and entry that could also have been used to add additional shares onto the initial trade and would have increased the total profit of the compound signal.
Now notice the NMC2 ZeroHit in late June (the bottom pane). As mentioned in other examples, it's common for NMC to do a 1-bar overshoot of the zero line at precisely the time of the NMC2 ZeroHit, and actualy reinforces the quality and reliability of the NMC2 ZeroHit.
Thus we have another qualified Ocean setup and entry signal as a result of this formation on June 30th, which led to an almost $2.00 decline over the next 11 bars. That's an additional 10% decline in the price of the stock.
Remember that this setup and signal was occurring during the time window of the second weekly setup (see weekly chart, where the ZeroHit occurred in the week ending June 25th, entry delayed until the week ending July 9th).
Additionally, the exact same type of hidden Add On that we described above for the weekly timeframe occurred during this late June NMC2 setup on the 2-day chart. This hidden Add On allowed us to commit another round of trading capital with a risk of less than 30 cents while adding more than 85 cents to the profit potential of the NMC2 setup and entry.
Had this trade been initiated, it alone would have added another $2.70 to the profit of the NMC2 ZeroHit setup of June 30th. Thus the combined profit potential of the NMC2 and hidden Add On trade was more than $4.70, with a combined risk of less than $1.25, making the reward-to-risk ratio more than 3.75 to 1.
As mentioned in other examples, these highly effective Ocean trade profiles are readily available to us when we combine patience and multiple timeframe Ocean analysis.
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