quote quote image Traded the second QM on the chart. The diagonal lines on the QM's I call a whipsaw engulfing pattern; they happen everywhere. They are a masterful method of clearing orders.


I must further explain.

Each trader will see something different that will get their speculative juices going. I guess it comes down to that which conveys to you. I don't know if Red ever place MA's on his own chary but I have settled in on 4 of these; each having a very specific purpose.

The engulfing pattern contains all sorts of shapes and with each having the same purposes. Clearing orders and filling orders. Shake out the feeble hands, fill out the strong ones. Each has their own story but their endings are the same.

NFP is happening shortly....Part of my narrative would be to sit on the sidelines and watch the melee... Then if see a promising whipsaw engulf; tip my toe in with a small place.