(Click on image above to enlarge it.)
In this weekly chart of EURUSD, note the NMC Zero Hit Cross Kiss that occurs in late September, 2008, the same time as the 2-week Cross Kiss setup seen before.
Once the sell setup triggered an entry, prices declined from roughly 1.4435 to below 1.2400, a level not seen in more than 2 years. Note that prior to the collapse, the final price high in July was accompanied by a very significant four-month NST divergence (2nd sub-graph, magenta trend line), a vital warning sign of a major topping formation.
Once the market succumbed to the momentum failure of the divergence, prices sliced below both Ocean moving averages (green and red lines on prices), and it's worth noting that the break of the Regular Ocean Natural Moving Average (magenta line) was the first bearish violation since April 2006 (not fully shown).
Additionally, NMC, NST, and NMS all cut below zero (bearish) on the same bar (week ending 8/8/08).
Focusing on the area of the Cross Kiss again, note the behavior of NMS (3nd sub-graph below prices)—being below zero and then coming back to the resistance of its downward sloping Fast Ocean moving average, creating the "hook" as the Zero Hit was forming and providing yet another clue to the expected severity of the downdraft.
To further substantiate the bearish case, the BTX (4rd sub-graph) had risen above its trend threshold (horizontal black line) in late August, telling us that this market was beginning to trend.
Furthermore, since the red bearish BTX 2-Line (5th sub-graph) had exchanged dominance with the green bullish 2-Line in early August, the Cross Kiss Zero Hit was expected to yield a powerful down move. Note that this was the first time that the bearish red line had gained dominance over the bullish green line since late 2006 (not fully shown).
In other words, the Ocean indicators had been quite bullish for more than a year and a half before turning bearish just before the crash. Note the timely NMC Zero Hit buy setups that formed from June 2007 through June 2008 (magenta triangles) that offered excellent buying opportunities throughout the very bullish advance in the EURUSD.
The bullish Zero Hit in August 2007 has been labeled to note that it was occurring simultaneously with the final 2-week bullish Zero Hit shown on the prior chart. This drives the strong up move that took place from August through November 2007.
This chart showing several Ocean tools together helps to demonstrate how the synergy of different Ocean indicators can be harnessed to powerfully and efficiently analyze a market.
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