From a32c7ddb68e8a388d7737011c0b127f9504abb82 Mon Sep 17 00:00:00 2001 From: verymeticulous Date: Thu, 8 Jul 2021 08:00:32 -0400 Subject: [PATCH] Create 2021-07-01-GME-The-Powder-Keg-Ready-to-Explode.md --- ...-01-GME-The-Powder-Keg-Ready-to-Explode.md | 91 +++++++++++++++++++ 1 file changed, 91 insertions(+) create mode 100644 Technical-Analysis/2021-07-01-GME-The-Powder-Keg-Ready-to-Explode.md diff --git a/Technical-Analysis/2021-07-01-GME-The-Powder-Keg-Ready-to-Explode.md b/Technical-Analysis/2021-07-01-GME-The-Powder-Keg-Ready-to-Explode.md new file mode 100644 index 0000000..8adfe13 --- /dev/null +++ b/Technical-Analysis/2021-07-01-GME-The-Powder-Keg-Ready-to-Explode.md @@ -0,0 +1,91 @@ +GME: The Powder Keg Ready to Explode +==================================== + +| Author | Source | +| :-------------: |:-------------:| +| [u/RocketTraveler](https://www.reddit.com/user/RocketTraveler/) | [Reddit](https://www.reddit.com/r/Superstonk/comments/obteg7/gme_the_powder_keg_ready_to_explode/) | + +--- + + +[Education 👨‍🏫 | Data 🔢](https://www.reddit.com/r/Superstonk/search?q=flair_name%3A%22Education%20%F0%9F%91%A8%E2%80%8D%F0%9F%8F%AB%20%7C%20Data%20%F0%9F%94%A2%22&restrict_sr=1) + +Hey all, + +GME is a massive powder keg about to explode. Curious? Read on to find out more... + +A very reliable technical indicator created by Rocky Outcrop is flashing a rare signal that cannot be ignored. + +Full credit goes to Rocky Outcrop and Trade Spotting for creating this custom DMI indicator and sharing it with the masses. + +TLDR + +- The Directional Movement Index (DMI) started flashing a powder keg signal on June 29th. This signal has only flashed three other times in all of 2021 + +- The ignition source of the signal (the ADX line) is at it's fourth lowest point since 2018. The lower the ADX goes, the more certain we can be of a near-future run-up + +- When the powder keg explodes, expect volatility and momentum to skyrocket + +DMI + +The Directional Movement Index (or DMI for short) is a technical indicator made up of three components: + +- DI+: This shows the current momentum of positive price movement. This is shown in YELLOW on my charts below + +- DI-: This shows the current momentum of negative price movement. This is shown in PINK on my charts below + +- ADX (Average Directional Index): This shows the *strength* of the current price movement. This is shown in BLUE on my charts below (crossover points denoted in orange) + +The powder keg signal: When the DI+ and DI- lines converge (come together) AND the ADX line is simultaneously at a low point, the powder keg is lit. This is denoted by a gray background highlight on the charts below + +Without further ado, here are the charts: + +Current Price Action + +[![r/Superstonk - GME: The Powder Keg Ready to Explode](https://preview.redd.it/lklugrdlhn871.png?width=1032&format=png&auto=webp&s=4678d387e3ac1f692432e9117266407ce291cd1c)](https://preview.redd.it/lklugrdlhn871.png?width=1032&format=png&auto=webp&s=4678d387e3ac1f692432e9117266407ce291cd1c) + +Current Price Action. DMI Power Keg lit as of June 29th + +Above shows our current price action over the last 6 weeks. As we have been consolidating from June 9th, the DI+ and DI- lines have converged and the ADX is at an extreme low. Notice the powder keg signal flashing (light grey box) as of June 29th. + +Historical Price Action + +[![r/Superstonk - GME: The Powder Keg Ready to Explode](https://preview.redd.it/tsvvhn7mln871.png?width=1098&format=png&auto=webp&s=c88a922bbf50331713f897de4995ba44ac13a078)](https://preview.redd.it/tsvvhn7mln871.png?width=1098&format=png&auto=webp&s=c88a922bbf50331713f897de4995ba44ac13a078) + +Historical Price Action. Multiple Signals Flashing over 2021 + +This is only the 4th time this entire year the DMI powder keg has been lit + +- The first signal was flashed at the end of February roughly 1 week before our huge run-up from $40 to $350 + +- The second and third signals were flashed together roughly 2 weeks before our May run-up from $140 to $350 + +- The fourth signal just started flashing on June 29th. This would indicate a huge move up in the next 1-2 weeks. Run-up to commence from $200 to ??? + +Bonus Chart + +[![r/Superstonk - GME: The Powder Keg Ready to Explode](https://preview.redd.it/m19pl7zxjn871.png?width=1538&format=png&auto=webp&s=56a9d0a9096ea3b1dd860b035d812d0c5455a879)](https://preview.redd.it/m19pl7zxjn871.png?width=1538&format=png&auto=webp&s=56a9d0a9096ea3b1dd860b035d812d0c5455a879) + +Historical ADX Data + +Bonus chart! + +The ADX is the fuse that ultimately ignites everything as it shows the current momentum has stalled and volatility is ready to pick back up again. + +Since 2018 the ADX has only ever been this low THREE OTHER TIMES. The most recent low point is happening right now! Historically speaking, GME is in a situation where it is ready to explode any day. + +Footnote + +For those who believe TA is invalid on GME and other SHF-manipulated stocks, I respect your opinion. + +My opinion? TA is not the holy grail by any means, but it is still valid on GME. + +Why? Because TA relies heavily on human patterns and emotions as they relate to stock prices. GME is no exception. There are still support and resistance levels like everything else. + +Yes there is no denying GME is heavily manipulated, but that doesn't change the larger philosophy TA is based on. + +Remember, TA is not a crystal ball but it does offer a glimpse into the most likely outcome. + +To each his/her own. + +*I am not a financial advisor and this is not financial advice*