The Swimmer (🏊) and Squid (🦑): Plunging to Momentum's Extremes
In the VOLMIKE.COM system, just as we track bullish momentum's extension with The Astronaut and its climax with The Half-Moon, we utilize The Swimmer (🏊) and The Squid (🦑) emojis to identify bearish momentum pushing into new, lower territory and its eventual exhaustion. These visuals are crucial for managing downtrends and anticipating potential reversals.
The Swimmer (🏊): Diving to New Depths
The Swimmer emoji (🏊) is our signal for Volatility Mike breaking into new, lower momentum territory relative to the previous day's trading.
- Appearance: The Swimmer (🏊) appears on the plot each time the Mike line reaches a new low that is below Yesterday's Low. (Conversely, The Astronaut tracks new highs above Yesterday's High).
- Meaning: This emoji provides a continuous, visual trail of aggressive and sustained downward momentum. It indicates that Mike is not just weak, but actively breaking and extending below a significant daily benchmark, bar after bar. It signifies a persistent bearish thrust, indicating strong selling pressure.
The repeating appearance of the Swimmer confirms that the momentum is still pushing boundaries to the downside, providing confidence in the continued strength of the bearish move.
The Squid (🦑): The Abyss of Exhaustion
After a series of Swimmers signals a prolonged downward momentum extension, The Squid emoji (🦑) appears to mark a critical turning point.
- Appearance: The Squid (🦑) is plotted at the "lowest low" of Mike's downward thrust, after the last Swimmer in the series. (Conversely, The Half-Moon marks the final high in a bullish thrust).
- Meaning: This distinctive emoji acts as a precise bearish climax indicator or a potential exhaustion/reversal signal. It suggests that the sustained, aggressive downward momentum tracked by the Swimmers may be culminating, making a retracement, consolidation, or reversal more likely.
Dynamic Duo: Tracking Extension and Exhaustion (Downwards)
Together, The Swimmer (🏊) and The Squid (🦑) provide a powerful visual narrative for bearish movements:
- Extension Tracking: The Swimmers confirm the strength and duration of a downward momentum thrust that is pushing into new lows.
- Exhaustion Alert: The Squid provides a timely signal that this extended downward thrust might be reaching its limits, prompting attention to potential shifts.
Importance for Marengo Setups
This combination is vital for managing our "Marengo" trades, particularly for bearish setups:
- For South Marengo (bearish) setups, a series of Swimmers confirms the aggressive breakdown into new lows, validating the strength of the entry.
- The subsequent appearance of a Squid (🦑) becomes a crucial signal for profit-taking, tightening stop-losses, or even beginning to look for potential Overextension & Reversal Signals, potentially leading to a counter-Marengo opportunity.
By tracking Mike's journey into the depths with the Swimmer and anticipating its culmination with the Squid, we gain unparalleled insight into the market's dynamic bearish swings and maximize our ability to manage trades effectively.