(This is Part 8 of a series. Go back to Part 7.)
Notice how in this chart of daily wheat that the market goes substantially below the STX, stays there for several days and then strongly resumes its upward climb. Another “heartbreaker,” but again, the STX is doing its job for us. It is calculating that the retracement is serious enough that we should be stopped out of the trade.
And again, too, we should consult our Ocean tools at that point, including the NMC and NMC2, the bounded tools NDX, NST and NXC as well as the new bounded BTX trend tool to give us a high-probability picture of what is likely going on and how to act accordingly.
It is not possible to talk about and examine every possible permutation between markets and the STX that can occur, because the variety is infinite. It is absolutely essential, in using the STX, that the trader devote some serious time (meaning at least weeks or months, not days) to studying how the STX interacts with various markets as well as with the other Ocean tools. Only then will its potential magic truly reveal itself to you.
Let’s take one final example, though, one where a whole series of “heartbreaks” is occurring:
(This is the end of Part 8. Go to Part 9.)
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