There are a number of other situations that seem to have the potential for leading to profitable outcomes, but given that they are not all fully fleshed out, they might have to be refined as I explore which, if any, actually turn out to hold true...
- So then, something else to check out is whether it makes sense to enter positions on either side of the 3½-hour price flow channel at 0.14% deviation when is basically flat AND in the middle of a similarly neutral 14-day envelope. Even if so, positions should not be entered until you are certain that the 60-minute baseline has formed a crest or nadir.
- For the next scenario, suppose you have the 14-hour price flow channels sloping more than mildly, but only moderately so. Under these circumstances, you should look for the contrary band of the hourly price range envelope to cross over the contrary inner band of the 3½-hour price flow channel and form a peak or valley. Enter a position when the 60-minute baseline make a U-turn back toward the center of the 3½-hour price flow channel.
- Yet another scenario is when the slope of both longer-term trends surpass their respective threshold levels. In this case, it's likely that the most radical pullbacks you are going to see will only be to the center of the 3½-hour price flow channel. Accordingly, this is when and where you should purchase the appropriate out-of-the-money call or put contract.
- If the upper inner band of the 3½-hour price flow channel at 0.14% deviation is in contact with or beyond the upper moderate band of the 14-hour price flow channel at 0.30% deviation, AND both are sloping upward, enter positions when price pulls back to the center of the 3½-hour measure, probably at the 0.12% deviation level of the contrary band of the60-minute price range envelope.
- Conversely, if the lower inner band of the 3½-hour price flow channel at 0.14% deviation is in contact with or beyond the lower moderate band of the 14-hour price flow channel at 0.30% deviation, AND both are sloping downward, enter positions when price pulls back to the center of the 3½-hour measure, probably at the 0.12% deviation level of the contrary band of the60-minute price range envelope.
- And finally, if the lower band of the 60-minute price range envelope is above the upper inner band of an upward sloping 3½-hour price flow channel, or the upper band of the 60-minute price range envelope is underneath the lower inner band of a downward sloping 3½-hour price flow channel, you are looking at "monster" momentum and can therefore enter a position in the corresponding direction at any time!