Click on the chart to enlarge it.
Now that we're done with the micro-analysis, let's sit back and take a big-picture look at this chart:
After the initial Cross Kiss ZeroHit that put us into the trade (on timeframes from a quarterly chart all the way down to this intra-day), prices began a precipitous decline that is still in progress during the creation of this example (the end of July).
Subsequent to the initial sell setup and entry, there have been four additional ZeroHit setups and entries, all very clean formations with substantial profit opportunities.
This severe breakdown in price isn't an accident. When the tide of Ocean analysis lines up in different timeframes like this the probabilities reach red-line territory that most of the thrusts in the direction of the major trend are going to be substantial and protracted while most of the counter-trend reactions are going to be swift and shallow.
Notice that on this relatively short timeframe chart (113-minute), prices have not violated the NMA a single time in more than 2 months. That's the kind of trend move to expect when six different time frames are screaming the same message!
Since our analysis was predicated on the fact that the quarterly chart had generated an Ocean sell setup and entry, I knew that the Ocean sell setup and entry signals in the lower time frames would be unusually powerful. That is exactly what we found, from a two-month chart right on down to the half-day chart.
(This is the end of Part 9. Go to Part 10.)
|
