Hubert Senters here.
Let’s take a look at Amazon, AMZN on the ticker symbol as you can see here. I’ve got one, two, three steps here in the linear compression. All this is basically when the Average True Range and ATR gets inside of another Average True Range if compression takes place. And then just think about as a loaded up spring and then boom, it will pop to the house so.
In this example you can see high side, high side, high side, ever since just broke to the high side here it went from $1,914 all the way up to $2,040 and now it’s pulling back. So, ideally what I’d like to see happen here on Amazon is for it to go into a consolidation phase where then it would be an Average True Range inside of an Average True Range just think about it like a tight range within a tight range.
And then an explosion to the high side so it’s going to be on the lookout for. If you’re just trading traditional Ichimoku it is sold off below the turning line. It’s bouncing a little bit off the standard line. We checked the other timeframes, the hourly still in the sell so I wouldn’t touch it yet. I would add it to a watch list of potential longs though.
Mark Helweg is going to be doing a special webinar on ‘’The Compression Breakout Setup and Strategy,’’Wednesday, September 12th at 8PM EST. Defining a compression setup, compression market theory, long volu compression options strategy and trading compression breakouts with entries and exits. This is going to happen Wednesday, September 12th at 8PM EST.
Good luck. Hope it helps. And I’ll HYPERLINK you to the form.
Hubert.
