Hey!
We have a contradictory situation on the daily chart, and I thought I'd take a close look at this as an important model case.
1. After reaching a peak on January 11, price fell and broke through the lower boundary (Senkou Span B) of the cloud. At the very least this is an indication that the upward structure has begun to break down. However, such signs require confirmation. Sometimes there are very aggressive bounces from this area. And such a bounce happened!
2. The bounce resulted in the price action not allowing the crossing of Kijun-Sen (Base Line) and Senkou Span B. This can be considered a continuation of the trend.
3. And here is the point for which I am making this posting. Tenkan-sen (Conversion line) crossed green Kumo cloud and ended up below it. It a short-term oriented line (read the Ichimoku guide), but it is a bearish signal. While the signal from the Kijun is rather bullish.
4. Next. The golden cross itself. It was formed inside the cloud! The point is that the main trend changes occur either under the clouds or above the clouds. These crosses should indicate that the price movement towards the cloud boundaries has started. The space inside the cloud has no pronounced meaning. This signal is not clear. Or partially bullish.
5. Price has broken through the ceiling of the cloud and opened above it. Bullish.
6. Lagging Span caught just a little edge of the border of Senkou Span A. These touches should be avoided if we have a really bullish trend. However, it rebounded immediately. But it still gives us a lot of uncertainty. A signal of a short-term trend disruption.
In such a situation, it means a fierce fight between bulls and bears, and the trend is not really defined. But the bounces introduce an extremely contradictory picture. In this situation, it is recommended to look for signals on an older timeframe.
For 1D, the most informative and closest is 3D.
Yeah, It is. A death cross has formed on the 3D chart. But price is desperately starting upwards right from the cross, as if it were not a death cross, but a true golden cross. This is an amazing illustration that greed is blind. I don't even remember if I've seen this before?
We would like to add that all events are unfolding against the backdrop of the monthly bearish shooting star signal.
My post is informative only, helping to take a closer look at the market with Ichimoku.
Good luck.
We have a contradictory situation on the daily chart, and I thought I'd take a close look at this as an important model case.
1. After reaching a peak on January 11, price fell and broke through the lower boundary (Senkou Span B) of the cloud. At the very least this is an indication that the upward structure has begun to break down. However, such signs require confirmation. Sometimes there are very aggressive bounces from this area. And such a bounce happened!
2. The bounce resulted in the price action not allowing the crossing of Kijun-Sen (Base Line) and Senkou Span B. This can be considered a continuation of the trend.
3. And here is the point for which I am making this posting. Tenkan-sen (Conversion line) crossed green Kumo cloud and ended up below it. It a short-term oriented line (read the Ichimoku guide), but it is a bearish signal. While the signal from the Kijun is rather bullish.
4. Next. The golden cross itself. It was formed inside the cloud! The point is that the main trend changes occur either under the clouds or above the clouds. These crosses should indicate that the price movement towards the cloud boundaries has started. The space inside the cloud has no pronounced meaning. This signal is not clear. Or partially bullish.
5. Price has broken through the ceiling of the cloud and opened above it. Bullish.
6. Lagging Span caught just a little edge of the border of Senkou Span A. These touches should be avoided if we have a really bullish trend. However, it rebounded immediately. But it still gives us a lot of uncertainty. A signal of a short-term trend disruption.
In such a situation, it means a fierce fight between bulls and bears, and the trend is not really defined. But the bounces introduce an extremely contradictory picture. In this situation, it is recommended to look for signals on an older timeframe.
For 1D, the most informative and closest is 3D.
Yeah, It is. A death cross has formed on the 3D chart. But price is desperately starting upwards right from the cross, as if it were not a death cross, but a true golden cross. This is an amazing illustration that greed is blind. I don't even remember if I've seen this before?
We would like to add that all events are unfolding against the backdrop of the monthly bearish shooting star signal.
My post is informative only, helping to take a closer look at the market with Ichimoku.
Good luck.