The Algos at Work with GMEGameStop Corp. Class ABATS:GMEtroydowvanzandtThe N wave is Ichimoku's fundamental unit of price progression. This inchoate one is demonstrates something interesting. Notice how price in the A-B leg took a very lazy, meandering route to Point B where the retracement began. Then things tightened up. The green rectangle with the histogram to the right represents a putative institutional order block (green cuz it's mostly buy orders). Things changed here. The B-C leg is a spatiotemporal propagation model (a species of kakugi operation). Notice not only how closely price is adhering to the propagation model, but look, too, at the metronome-like back-and-forth you see relative to the line. This is quintessential institutional buying in smaller lots--a ploy to hide their actions, though price action over the last couple of sessions looks like it's getting more retail participation, hence the bigger green candles. The baitfish are showing up to the party. The algos are slowly advancing price to the red rectangle where all the resting institutional sell orders are waiting to get triggered. Here's where they'll pull one of the tricks out of their collective hat. They might make it look like price will continue past this level with a tempting green candle. Then they pull the rug--the classic fakeout. The algos move price relative to options contracts. It's very possible they may stall price between now and the resting sell orders. If you sell a put or a call, you want to run the clock down. The process is called Theta decay, Theta being the time variable in the options equation. They did this already last Wednesday. The candle that printed on the 7th is a rare four-corner doji. They compressed price just to eat up time. I liken the algos to the tripods in War of the Worlds. They really don't care where price is at any given time. They simply go from Point A to Point B to harvest retail investors to grind up into Delta-neutral fertilizer. The wise trader rides the tripod and lets the suckers on the ground get harvested. You have to figure that a pullback from the $29.50 level (where all those sell orders are likely lurking) is a real possibility. As usual, I'm playing it by ear. I might write another put, in which case I'll go ATM or ITM. I may just ride the underlying up there and tighten my stop. I may deploy my capital elsewhere. Ichimoku helps you get a handle on the temporal, time being the most important component of the system. The algos work under the same time constraints as other market participants. Check out my new book on Amazon--Ichimoku: The Holistic System.