USMx2xCB

[Simon.B]

Hi g,

Good stuff....thanks.

Simon

[g<><]

i've removed this post.

[g<><]

i've removed this post.

[abacaba]

Yes, market moves by twos and threes. Didn't know SQ9 had that. Probably simpler without it.

Jenkins, AFAIK, was never explicit about this. I remember a brief reference to "the basis of all market movements" and a partially shaded figure in one of his books, that's about it.

Todd

[g<><]

in retrospect it was my mistake in citing Jenkins/outside sources. thank you, as it really was off topic to this discussion of the USM2 indicator.

[sbank]

Not sure if even a child could do it. You seem to make it look easy.

Of course my GF says I sometimes act like a 12 year old...

[g<><]

good afternoon sb,

i cannot trade this either. i'd get whipsawed so fast. i'd zig and it would zag on me.

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the first chart is the market top as shown in today's action. on such a macro level, price could go up or down from that box. marge is calling, right?

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Wave59's ETE is predicated on the foundational studies of this platform. however, a lot of traders will use it to take the signal as a CIT than to pair it with Market Structure. take a look at the signal at point A and see what price did. not so great. in the alternative, i suggest ETE becomes increasingly valid at the end of a well-developed trend.

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often times the overnight market will dictate the morning's Market Structure. today it was a clear uptrend but not for long as USM continued and repeated to show diverganz as price moved up. ja, diverganz.

trendlines are placed to frame price action.
ETE signals trend exhaustion as we know, trees do not grow to the sky.

look for the setup...but only within the framework of the market structure.

first red arrow, our steepest trendline sees price dip and test from below. the kiss and go.
second red arrow, midgrade trendline sees price dip and test from below. again, the kiss and go.
third red arrow, lowest trendline sees price dip and test from below. we know this one, the kiss and go.

price action is key and the graphical indicators only serve to frame it into snippets of repeating patterns we call setups. graphical indicators: indicators that interact with price (fibonacci retracements, ema, trendlines etc.) non graphical indicators, i.e. volume, usm2, exhaustion dots, etc.).

it is really about the repeating pictures. take a look at the mom lines within the boxes.
in one, you can see two downsloping lines even in that snippet, tiny time frame.
in two, the lines aren't great for the short trade, except for the fact that both lines are below the zero line.
in three, hey, we know this (both lines trending down)...and we go short without hesitation.

i often think that our esoteric methods give traders a bias to look for CITs than to trade with the trend. in the final analysis, identifying Market Structure clarifies the nested setups, affording the trader directional resolve to trade to the trend.

the hardest thing to do, is to haphazardly chase waterfowl for a killshot.

rather, successful hunters will...
survey the entire lake, check wind direction, identify the flight path of the landing ducks, and wait for the inevitable slowing flap of wings prior to landiing, finally pulling the trigger. a near stationary target for your taking. not fish in a barrel good, but good, right?

i know that this is a long winded post just to say; take in the big picture and frame it, then crop it to what you know. those are the high probability (easy?) trades.

not sure if a child can do it sb...but i've heard, so easy a cave man could.

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post script: the dotted lines were my two trades today as i missed the market open.
trade 1 M.S.: definitely down. setup: price hits BBC and the 200sma. USM2 crosses over.
trade 2, M.S.: down to maybe a chop? setup: price hits 50/200sma golden cross. USM2 crosses over. exits with Rad9.

[g<><]

saw that Market Structure was printing out a familiar pattern...took some screengrabs as it played out.

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Market Structure: cup and handle. aber diverganz, USM2 non-supportive on the move up/for breakout.

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topping candle, red exhaustion dot. USM2 crossover to the downside.

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the aftermath, money saved. USM2 did not support a breakout so far. (could be printing a larger handle?)
we live to trade another day.

[g<><]

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a clustering of graphical indicators after the morning's correction setups up the resumption of trend, Market Structure.

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this trade is ongoing as of this post. moving up the stop as it runs.

[g<><]

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over 39 ES points to the good so far. we will move up stops in the event it runs to the next moon flux line.
most recent formation is an ascending triangle to spring up from.