Last week I mentioned that the last few times the daily signals entered OS territory we had witnessed impulsive moves to the downside. This due to an accelerating risk condition regardless of EW counts or pattern setups. I don't hide any secrets from readers of this blog, and they know that I have advocated these accelerative risk setups when signals are in their OB / OS conditions. This is a no brainer. The question is, how long will you keep your position for and how much profit are you willing to leave on the table. As they say, leaving some on the table is not so bad so long as you walk away with some.
Last week also showed the daily signals just outside of its OS territory and I warned that the risk is there. Today's move is not out of the ordinary or gigantic, but it points to being able to spot these setups or signals, because these types of moves "CAN" manifest to bigger moves very quickly.
Again, the last time we had this daily condition was AUG, OCT, DEC 2014, and MAR 2015, and Now. These moves were all impulsive.. This is a 5 for 5.. This is not a coincidence.
These are very simple analysis not requiring more than 1 or 2 indicators.
MT: DOWN
ST: DOWN
PA: DOWN
The 60min. chart below might show a corrective pattern down, but it cannot be confirmed until our signals turn UP impulsively or have a Positive Divergence that can clue us in to a CIT.
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