Nikkei HuntingThis is a project that tries to catch pivot points and reversals using Japanese Candlesticks Analysis. All rectangles are zones of influence where support/resistance forces might occur. Icons are milestones with relevant time stamps in the multiple simulated scenarios that might unfold. Although the elements are pointing into a downward channel, there is also the scenario where after a longer correction the market might push for higher highs, leaving the big ellipse as a potential consolidation zone in case this type of scenario unfolds. Marked price levels are also to be considered when hunting for potential pivot points (entry signals) regardless of the nature of the Candlestick Signal relative to the recent wave direction, form, and length. A pivot point can turn out to be a complete reversal of the wave, or just a swing in a wave where smaller corrections or consolidations occur.
The project does not try to anticipate the overall tendencies of the future evolution of the price, but rather cast a "web" of elements that provides a predetermined overall context, in the attempt to hunt for potential entry signals.
We start this project with a potential bearish engulfing which qualifies as a potential signal, but doesn't look at first sight as a complete reversal. This status might change, but in the incipient analysis of the candlesticks involved, we can observe the nature of the candlestick shadows with their highs, signaling a weakness in the bullish momentum.
