Reversal Wednesday Wrap Up

I have already commented on the spoos’ bipolar disposition as of late, which made me a bit cautious regarding the odds at this juncture. This leaves us with today’s tape run in fast forward:

As I said – not a lot of participation today but solidly bullish and the little drop in the morning was clearly engineered to suck in a few more cuddly plush teddies.

Geronimo continues to kick ass and take numbers – one good long, one good short, and then a final short which lost 1.5 handles. Still a good day and nicely executed.

The fact that nobody has been commenting on ZeroFX in the past few days has been puzzling to me. In particular the setups on cable have been super sweet – see the annotated screen grab above.

In case you missed it – let me break it down for you: In typical Zero fashion we are always looking for divergences – yes. But in the process of fiddling with the various feeds that go into ZeroFX I presciently decided to plot one input separately and it’s what you see as the blue histogram right now. It seems that selling and buying exhaustions on various time frames are preceded by those long blue spikes, as clearly evidenced in the chart above. The timing is sometimes a bit too early and my recommendation on the very short term (the 1kT chart) would be to have a tight stop and be done with it as the good trades do not seem to swing much lower before they resolve.

The 4kT chart seems to require a bit more finesse but the pay off can be tremendous. For instance – watch that long +6.0 signal which thwarted the entire signal panel. We ramped up 40 more pips before it turned – but then got bestowed with a 200 pip drop. On the longer term chart anything above +/-1.0 also seems to be good for a quick swing but depending on your system it may pay to wait for the big ones, i.e. +/-2.0 and above.

I’m going to keep this thing free for a bit longer as I’m still playing with various incarnations, settings, and time periods for ZeroFX. As already announced I am also planning on eventually introducing an email alert system (or perhaps SMS for a premium) as part of a subscriber service that lets you guys know when a signal sigma event occurs.

See you on the other side!

Cheers,

Mole