(This is Part 6 of a series. Go back to Part 5.)
Notice that in this monthly Crude Oil chart the STX has a beautiful (or we could also say “elegant”) structure in relation to its market, and as said, this is occurring on a monthly timeframe. However, we can also notice that the STX kept us a certain distance from the market.
That is, although beautiful, the STX may not seem “ideal” here since it appears to have kept us farther away from the market (in this timeframe) that it “needed” to. But the STX is aware of a market’s volatility, among other things, and in this case the STX considered the crude market’s tendency towards extreme volatility during this move and thus acted to keep us at a more prudent distance than it might have otherwise. Again, it’s always trying to maximize the odds in our favor in terms of profitability.
And of course, for those of a more adventurous bent the STX dial is available to decrease the distance between the market and the STX if that seems desirable. Or one can even manipulate a “manual” curve of one’s choosing.
Now let’s look at a heartbreaker and asked what happened:
(This is the end of Part 6. Go to Part 7.)
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