Click on the chart to enlarge it.
Here we're looking at a 195-minute chart, or one half of a normal day session for stocks.
And we find that NMC is also generating a ZeroHit on this time frame at precisely the same time as the daily setup. The first of two ZeroHits develops at midday on the 19th and is quickly followed by a repeat setup ZeroHit mid-day on the 20th without an intervening entry signal.
Additionally, NMC2 had previously generated its own Cross Kiss ZeroHit sell setup and short entry less than a week and a half earlier, so multiple Ocean timing tools and formations are corroborating one another.
Note also that the Fast NMA is trading below NMA and that prices are finding resistance at the NMA.
In another powerful development, the NMM ROC tool has exceeded its upper boundary, generating the very valuable Slingshot formation. As demonstrated in other examples, when this formation appears it often results in an acceleration of price movements when and if the NMC ZeroHit setup generates an entry signal.
Not only are we now expecting an acceleration from the NMM ROC formation on this time frame, but also from the fact that at the daily level the NMA bands have dramatically tightened together, implying fireworks of their own. This trade should generate a large swift move and it should happen momentarily!
The Ocean-based short entry signal finally occurs the next day (the 21st), and prices begin to scream down, erasing 8 months worth of prior gains in a matter of seven days!
By having rolled down to this intra-day time frame we're now able to enter this trade with an initial risk of less than 50 cents, with dual timeframe agreement to support the entry. With the NMM ROC Slingshot we have reason to anticipate a ballistic move even on this lower time frame, within the context of the Band Pinch on the daily chart.
Exit: By using the Fast NMA as a trailing stop to lock in profits, we are still short as of the last trading day in July. The initial entry put us into the trade at a little better than $27.50 and prices have declined to $20.40 at the close on July 30. So far, that's a seven point (almost 25%) decline in eight trading days!
(This is the end of Part 3. Go to Part 4.)
|
