This is a rather difficult thing to sum up, but relates to the Creek Finder tool I've been working on.
The other day, I noticed that you could draw a sine wave which perfectly connected the tops of the PSY, BC & SOS with the bottoms of the Spring and Deep ST of this micro-trading range. After drawing it, I realized that drawing a fib from the first ST to the SOS would have perfectly predicted the wave's amplitude. I call this wave the Ghost Wave.
The Ghost wave showed me there was a kind of energy running through this trading range which extended beyond what the candles revealed. So, I took a second fib from the peak to the trough of the ghost wave and then drew sine waves of the same wavelength (but inverted the peaks) between each of the levels of this new fib. As you can see in the notes on the chart, there are several places where these fib waves acted as support and resistance in a way that straight lines would have missed.
I see these as a myriad of creeks over which price must jump on its way out of this trading range.
On my version of this chart, I also have a volume wave of the same wavelength as the ghost wave. Because of scaling issues on published ideas that hasn't been included. But, you can imagine a wave which connects the peaks of the volume bars. Notice how as we come out of the trough of the ghost wave, it will allow for volume to begin to flow in.
Today, I'm watching to see how the stock responds to the bounce after retest of the 238 wave. Will we be able to take each new level? And will the volume flow in under the volume wave as it rises?
The other day, I noticed that you could draw a sine wave which perfectly connected the tops of the PSY, BC & SOS with the bottoms of the Spring and Deep ST of this micro-trading range. After drawing it, I realized that drawing a fib from the first ST to the SOS would have perfectly predicted the wave's amplitude. I call this wave the Ghost Wave.
The Ghost wave showed me there was a kind of energy running through this trading range which extended beyond what the candles revealed. So, I took a second fib from the peak to the trough of the ghost wave and then drew sine waves of the same wavelength (but inverted the peaks) between each of the levels of this new fib. As you can see in the notes on the chart, there are several places where these fib waves acted as support and resistance in a way that straight lines would have missed.
I see these as a myriad of creeks over which price must jump on its way out of this trading range.
On my version of this chart, I also have a volume wave of the same wavelength as the ghost wave. Because of scaling issues on published ideas that hasn't been included. But, you can imagine a wave which connects the peaks of the volume bars. Notice how as we come out of the trough of the ghost wave, it will allow for volume to begin to flow in.
Today, I'm watching to see how the stock responds to the bounce after retest of the 238 wave. Will we be able to take each new level? And will the volume flow in under the volume wave as it rises?
