Tricks of Ichimoku clouds.
Updated
Hi.
I was making a comment in someone else's idea about the Ichimoku indication and thought one point should be dealt with more.
So, let's assume something are in a down-trend, candles are flying down from cliff, to the left of Kijun-sen and Tenkan-sen.
We can see this on chart 1.
At some point the drop reaches some kind of resistance and starts some lateral movement of larger or smaller amplitude.
Kijun and Tenkan are beginning to squeeze each other, traders are waiting for the long-awaited (after so many months!)
of a golden cross, but something else is happening.
A cross occurs, but it looks like it is not Kijun-sen piercing Tenkan-sen from below, but vice versa
Tenkan sen approaching Kijun has taken and fallen into this line and is looking down.
So...
Let's remember what the textbook golden cross looks like on Ichimoku?
I believe what is shown on screen 2 is exactly that golden cross.
Kijun come over in from below Tenkan-sen, and shot through the line.
The Tenkan-Sen did not change its horizontal position in this process.
Then it is required to see if there are situations, when a golden cross should form, but in fact
Tenkan-sen is falling down to the Kijun and the movement is going downward still, and one more cross is formed soon.
Voila, the summer 2021 chart of Etherium.
This is exactly the situation.
Conclusion:
Not every Kijun/Tenkan line cross after the big red Kumo cloud is a golden cross.
I encourage norok as a trader whom I have great respect for his work, to comment on these aspects.
I was making a comment in someone else's idea about the Ichimoku indication and thought one point should be dealt with more.
So, let's assume something are in a down-trend, candles are flying down from cliff, to the left of Kijun-sen and Tenkan-sen.
We can see this on chart 1.
At some point the drop reaches some kind of resistance and starts some lateral movement of larger or smaller amplitude.
Kijun and Tenkan are beginning to squeeze each other, traders are waiting for the long-awaited (after so many months!)
of a golden cross, but something else is happening.
A cross occurs, but it looks like it is not Kijun-sen piercing Tenkan-sen from below, but vice versa
Tenkan sen approaching Kijun has taken and fallen into this line and is looking down.
So...
Let's remember what the textbook golden cross looks like on Ichimoku?
I believe what is shown on screen 2 is exactly that golden cross.
Kijun come over in from below Tenkan-sen, and shot through the line.
The Tenkan-Sen did not change its horizontal position in this process.
Then it is required to see if there are situations, when a golden cross should form, but in fact
Tenkan-sen is falling down to the Kijun and the movement is going downward still, and one more cross is formed soon.
Voila, the summer 2021 chart of Etherium.
This is exactly the situation.
Conclusion:
Not every Kijun/Tenkan line cross after the big red Kumo cloud is a golden cross.
I encourage norok as a trader whom I have great respect for his work, to comment on these aspects.
Note
Note
That is why we have to add EMA with Ichimocku (and now MA but only on weekly chart) and technical indicators below.
Now you can see that candle was stopped by MA/EMA 50/200 cross, and at the same time, kijun line turned sideways, reducing its aggressive mood.
That means that a couple or three sideways candles without much of an up or down gust will just collect liquidity.
After which strength will wear off and the price will go down (not without help of falling SPX) this will be painful for all those who have experienced hope.
But that's exactly what the manipulators want.
And there was somehow too much hope. Excessive. They are demons of the market, they feed on it.
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