Click on the chart to enlarge it.
This 240 minute chart shows us that the Zero Hit sell setups that were present on the 360 minute chart on Sept 8th and 9th were also developing here (shown via the A and A' designation in the top two sub-graphs).
I've also added here another of the Ocean Bounded tools (named NXC, and shown in the bottom sub-graph) to illustrate how it performs in conjunction with other Ocean indicators.
This tool is designed to operate much as NMC and NMC2 operate (i.e., to identify the terminations of countertrend reactions), but the mathematics behind its construction is radically different than either NMC or NMC2.
Note that it too had confirmed the Zero Hit sell setups from NMC and NMC2 by generating its own Zero Hit sell setup (labeled A''). When all three of the Ocean tools that are designed to pinpoint counter trend retracements offer simultaneous signals, it is as close to a guarantee as the market will ever offer us. No analysis is ever perfect, but this triple combination is almost always devastatingly effective.
Also of significance is the fact that prices are below the two Ocean moving averages (shown as the thick green and magenta lines), and that both of the Ocean moving averages have gone flat and are on top of each other.
This formation is important because the proximity of the moving averages to one another at the time when prices return to them during the Zero Hit almost insures that the resistance they'll provide will prove to be overwhelming and that the sell setups will be significant.
However, our real focus is once again during the 14th and 15th, because we were initially drawn to that period as the result of the Zero Hit sell setup on the daily. We saw that the 360 minute chart generated its own Zero Hit setup on the 14th, so now let's closely examine the formation of some of the Ocean tools here on the 240 minute chart.
We see that the first of two Zero Hit sell setups from NMC occurred early on the 14th (as shown by the label B on the chart). The NXC (described above) also produced its own Zero Hit sell setup (shown via the B'' label in the bottom sub-graph), indicating the significance of this retracement setup.
Another point on the chart occurring at this time is worthy of comment. Note the point B' on the NST sub-graph, where NST (in magenta) climbs to a level exceeding all other NST values to the left on the chart. This action from NST when price itself is weak and unable to violate any prior price pivotpoints to the left is another formation that often leads to significant declines.
That is, the math behind NST is allowing it to rally above all prior NST values to the left, while price remains weak and unable to mount any sort of meaningful rally. NST can often be applied in this manner, and under certain circumstances it has powerful implications, as we'll soon see in the 120 minute chart.
(This is the end of Part 3. Go to Part 4.)
|
