Create 2021-07-01-GME-The-Powder-Keg-Ready-to-Explode.md

2025-06-07 18:47:49 -05:00 · 2021-07-08 08:00:32 -04:00 · 2021-07-08 08:00:32 -04:00 · a32c7ddb68
commit a32c7ddb68
parent 02a80d2bd9
1 changed files with 91 additions and 0 deletions
--- 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
@ -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*