Ichimoku Cloud showed us to expect strong price action here.
Lesson: set stop-losses below reversal areas and Fibonacci support.
Notes:
Tenkan-sen calculation: (highest high + lowest low)/2 for the last 9 periods.
^ it is time to change our way of thinking
- minor support/resistance
Kijun-sen calculation: (highest high + lowest low)/2 for the past 26 periods.
^ basis, guideline, yardstick
- support/resistance & trailing stop
- indicator of future price
Senkou span A calculation: (Tenkan-sen + kijun-sen)/2 plotted 26 periods ahead.
Senkou span B calculation: (highest high + lowest low)/2 calculated over the past 52 time periods and plotted 26 periods ahead.
^ start off before the others
Kumo (cloud) is the space between senkou span A and B. The cloud edges identify current and potential future support and resistance points.
- height represents volatility
- strong support/resistance
- Bullish when Senkou Span > Senkou Span B and vice versa when markets are bearish.
- Look for Kumo Twists in future clouds, where Senkou Span A and B exchange positions, a signal of potential trend reversals.
Lesson: set stop-losses below reversal areas and Fibonacci support.
Notes:
Tenkan-sen calculation: (highest high + lowest low)/2 for the last 9 periods.
^ it is time to change our way of thinking
- minor support/resistance
Kijun-sen calculation: (highest high + lowest low)/2 for the past 26 periods.
^ basis, guideline, yardstick
- support/resistance & trailing stop
- indicator of future price
Senkou span A calculation: (Tenkan-sen + kijun-sen)/2 plotted 26 periods ahead.
Senkou span B calculation: (highest high + lowest low)/2 calculated over the past 52 time periods and plotted 26 periods ahead.
^ start off before the others
Kumo (cloud) is the space between senkou span A and B. The cloud edges identify current and potential future support and resistance points.
- height represents volatility
- strong support/resistance
- Bullish when Senkou Span > Senkou Span B and vice versa when markets are bearish.
- Look for Kumo Twists in future clouds, where Senkou Span A and B exchange positions, a signal of potential trend reversals.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.