Don't know what you mean by "divergent". The ES is mean-reverting and AMT is all about mean reversion, so the fact that price keeps reverting to the mean is more important than how far away from the mean each effort is. That you have what some people call a "foghorn" is irrelevant to the trading opportunities.
So it doesn't matter if price is making LH,HL or HH,LL the focus should be on the mean until price starts trending again?
The mean is in place even in a trend. That's how trend channels form. If you haven't read the pdf, click here. It's a lot shorter than it looks because of all the charts.
Patience (from Zen and the Art of Poker by Larry Phillips) RULE #1: Learn to use inaction as a weapon. RULE #2: Don't get irritated or angered by long session of folding. RULE #3: If you've been folding a lot, for a long time in the game, and you're starting to think that maybe it's time you got in and played a few hands again -- that's not a good enough reason. Keep folding. RULE #4: Don't feel like a martyr when folding. RULE#5: Sometimes others get to play and you don't... But the most important thing is this: you must be comfortable with this - welcome it. Make peace with this idea. Cross your arms and sit back. RULE#6: To win at poker you must embrace the idea of breaking even.... A distaste for breaking even can lead us into the valley of pressing and overplaying and other wrongful activity. RULE #7: Regard patience as a central pillar of your game and strategy.... Don't assign it a secondary or lesser role. RULE #8 Keep plugging away. Expect nothing....There will be times when you play tight, keep playing tight, and keep on playing tight, and it still does no good...the bad cards just keep coming.... You may have to just keep doing it until the end, with no reward at all. RULE #9: Don't fall into the "Now Trap." Players want to win now, today. Results must happen now, in this hand, the one right in front of us.... We assign a little more importance to where we are. We make it bigger, more important.... But we do this timewise , too - we assign things more importance because they are happening in the present moment.... Yet giving greater importance to the present in the game of poker allows us to imagine marginal hands into good hands and good hands into great hands. RULE #10: The long run is longer than you think.... Playing only the best hands can be frustrating.... Anger and irritability can arise. The emotions can be severely tested. This is where Zen comes in. RULE #11: Don't defend patience too strongly.... You can't make yourself go to sleep through sheer strength of will. It is not about the strength of commitment - it is more of a gentler thing - a letting go. RULE#12: Don't be impatient about patience.... Your brain is telling you to play patiently while your emotions are saying, "What's taking so long?" These two must be in alignment. RULE #13 Occupy yourself while you are not playing.... It is critical that you learn to enjoy yourself in the cardroom in ways other than in the game itself - by constantly staying, and playing.... The fact is, if you are playing correctly, you are going to be doing a lot of folding. So you need to think of ways to fill this time. If you hate this period of time - when you're not playing , and some do - it will have the effect of throwing your game out of kilter. RULE #14: Begin by playing tight, but don't forget to stay tight.... The important thing is not who possesses the control and discipline at the start of the game, but who possesses it at the middle, the end, and all points throughout. RULE #15: Discipline your game...it is more like patience -- pacing yourself (especially emotionally) for the length of the game. It is different than mere patience, however. It comes from a larger and longer-term view of things -- one that steps back and sees things as a whole.
I was playing around with the weekly chart and came up with something like this: View attachment 145276 And I will most likely attempt to look for, at a minimum, a bounce around there should the opportunity present itself: View attachment 145277
what makes u pull the trigger to play a reversal at this level according to your plan ? ie. what action do u want to see ? and what if that action Tells you to play the reversal.. but it doesent play out ? do you exit or reverse the position or wait and see ?