(Click on image to enlarge it)
(This is Part 10 of a series. Go back to Part 9.)
Here on a simple basic Ocean screen, I’d added the pertinent Ocean tools to better analyze the technical structure of the market. We find that on the 2-week period ending 5/13/05, there is an NMC Zero Hit, accompanied by an NXC Zero Hit. As we know, this dual ZH has added significance beyond that of a ZH from NMC alone.
Additionally, prices have found the support of the “sandwich zone” (labeled pt. A) that exists in the area between the Ocean Fast Moving Average (FMA) – the solid green line on the price bars, and the Ocean Regular Moving Average (RMA) – the solid magenta line on the price bars. These Ocean events carry a powerful message about how explosive this move could be.
The following 2-week bar ending 5/27/05 does not trigger the entry from the ZH; rather it is a Delay bar where even more market energy is building into the formation. Remember that the +TX/-TX pivot was forming during this exact same time period, so when the 2-week ZH triggered an entry during the following bar, an explosive move should be anticipated. Let’s now turn our attention back to the Ocean Plus tools for more explanation.
(This is the end of Part 10. Go to Part 11.)
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