Rotation as we've outlined can add probability or subtract. This nuance of subtraction surprisingly has never been directly recognized as significant. Immediately it follows that our use of probability s-waves when trading against a previously established trend or momentum s-waves when trading with a trend finds its circular reasoning. That we find momentum s-waves in a trend proves the integrity of the trend is intact; the probability of a continuation even if this particular s-wave fails remains significant. That we find probability s-waves when trends change reflects our uncertainty of when exactly the last attempts to continue the trend have finally ended. These two scenarios previously noted and traded are quite obviously understood simply from recognizing rotation can be added OR subtracted.
The stand out question that should always be asked is: should we be trading a probability s-wave (PSW) or a momentum s-wave (MSW)?
Good Trading.
With our ideas of rotation and momentum finished there appeared to be no new problem to work on. In some sense its obvious what problem we should find ourselves working on next: understanding and organizing the combination of forms these fundamental ideas produce as a consequence. The plethora of possibilities appears endless, infinite at our onset but entirely within our ability to process.
Today we've analyzed one such pair as we try to absorb the ways in which our ideas have combined into sense and understanding on the chfjpy.
Good Trading.
A short explanation of some upcoming trading ideas on my watchlist at the moment.
Good Trading