The Batman Pattern intro short
I call this pattern the Batman Pattern, because if you look at the overall shape is it very much like a Batman jet, or car or Batman shirokin (throwing weapon)... Lower head, like baman wearing flying wings.
Definitely a rolling over pattern like a head and shoulders.
my apologies for the text below price that says sell and buy, just ignore it.
ichimoku cloud, see the translucent tiny green and red lines? We are above cloud cover.
The Ichimoku Cloud is a comprehensive technical analysis indicator that provides insights into trend direction, momentum, and support and resistance levels. It is a composite indicator, made up of five different lines:
Tenkan-sen (conversion line): The average of the highest high and the lowest low over the past nine periods.
Kijun-sen (base line): The average of the highest high and the lowest low over the past 26 periods.
Senkou Span A (leading span A): The average of the Tenkan-sen and the Kijun-sen, shifted 26 periods into the future.
Senkou Span B (leading span B): The average of the highest high and the lowest low over the past 52 periods, shifted 26 periods into the future.
Chikou Span (lagging span): The closing price plotted 26 periods behind the current price.
The cloud is formed by shading the area between Senkou Span A and Senkou Span B. When Senkou Span A is above Senkou Span B, the cloud is green, indicating a bullish trend. When Senkou Span A is below Senkou Span B, the cloud is red, indicating a bearish trend.
The other three lines can be used to confirm the trend direction and identify potential entry and exit points. For example, a bullish signal is generated when the Tenkan-sen crosses above the Kijun-sen. A bearish signal is generated when the Tenkan-sen crosses below the Kijun-sen.
The Chikou Span can be used to identify support and resistance levels. When the Chikou Span is above the price, it is considered a support level. When the Chikou Span is below the price, it is considered a resistance level.
Technical Analysis of the Ichimoku Cloud
The Ichimoku Cloud can be used to generate a variety of technical trading signals, including:
Trend direction: The cloud itself is a powerful indicator of trend direction. When the price is above the cloud, it is considered to be in a bullish trend. When the price is below the cloud, it is considered to be in a bearish trend.
Trend strength: The thickness of the cloud can be used to gauge the strength of the trend. A thicker cloud indicates a stronger trend.
Momentum: The Ichimoku Cloud can also be used to identify changes in momentum. When the cloud is expanding, it indicates that momentum is increasing. When the cloud is contracting, it indicates that momentum is decreasing.
Support and resistance: The cloud itself, as well as the Tenkan-sen, Kijun-sen, and Chikou Span, can all be used to identify support and resistance levels.
Entry and exit points: The Ichimoku Cloud can be used to generate a variety of entry and exit signals. For example, a bullish trader might look to enter a long trade when the price crosses above the cloud and the Tenkan-sen crosses above the Kijun-sen. A bearish trader might look to enter a short trade when the price crosses below the cloud and the Tenkan-sen crosses below the Kijun-sen.
Example Usage
The following chart shows an example of how the Ichimoku Cloud can be used to trade a currency pair:
Ichimoku Cloud chartOpens in a new window
www.fidelity.com
Ichimoku Cloud chart
The chart shows that the price is above the cloud, indicating a bullish trend. The Tenkan-sen is also above the Kijun-sen, confirming the bullish trend. The Chikou Span is acting as a support level, which could provide an entry point for long trades.
A bullish trader might look to enter a long trade at the current price, with a stop loss placed below the Chikou Span. The trader could then take profits at the next resistance level, which could be identified using the Ichimoku Cloud or another technical indicator.
Conclusion
The Ichimoku Cloud is a powerful technical analysis indicator that can be used to generate a variety of trading signals. It is a complex indicator, but it can be a valuable tool for traders who understand how to use it.
Additional Technical Considerations
The Ichimoku Cloud can be used in conjunction with other technical indicators to generate more robust trading signals. For example, a trader might use the Ichimoku Cloud to identify the trend direction and then use a momentum indicator to identify entry and exit points.
The Ichimoku Cloud is a lagging indicator, meaning that it can be slow to respond to changes in the market. It is important to be aware of this when using the Ichimoku Cloud to generate trading signals. The Ichimoku Cloud is most effective in trending markets
it is just one of the 10 indicators i have on 10 templates but each one tells me part of the the story. in this case i interpret it that there is a long way down to fall.
Definitely a rolling over pattern like a head and shoulders.
my apologies for the text below price that says sell and buy, just ignore it.
ichimoku cloud, see the translucent tiny green and red lines? We are above cloud cover.
The Ichimoku Cloud is a comprehensive technical analysis indicator that provides insights into trend direction, momentum, and support and resistance levels. It is a composite indicator, made up of five different lines:
Tenkan-sen (conversion line): The average of the highest high and the lowest low over the past nine periods.
Kijun-sen (base line): The average of the highest high and the lowest low over the past 26 periods.
Senkou Span A (leading span A): The average of the Tenkan-sen and the Kijun-sen, shifted 26 periods into the future.
Senkou Span B (leading span B): The average of the highest high and the lowest low over the past 52 periods, shifted 26 periods into the future.
Chikou Span (lagging span): The closing price plotted 26 periods behind the current price.
The cloud is formed by shading the area between Senkou Span A and Senkou Span B. When Senkou Span A is above Senkou Span B, the cloud is green, indicating a bullish trend. When Senkou Span A is below Senkou Span B, the cloud is red, indicating a bearish trend.
The other three lines can be used to confirm the trend direction and identify potential entry and exit points. For example, a bullish signal is generated when the Tenkan-sen crosses above the Kijun-sen. A bearish signal is generated when the Tenkan-sen crosses below the Kijun-sen.
The Chikou Span can be used to identify support and resistance levels. When the Chikou Span is above the price, it is considered a support level. When the Chikou Span is below the price, it is considered a resistance level.
Technical Analysis of the Ichimoku Cloud
The Ichimoku Cloud can be used to generate a variety of technical trading signals, including:
Trend direction: The cloud itself is a powerful indicator of trend direction. When the price is above the cloud, it is considered to be in a bullish trend. When the price is below the cloud, it is considered to be in a bearish trend.
Trend strength: The thickness of the cloud can be used to gauge the strength of the trend. A thicker cloud indicates a stronger trend.
Momentum: The Ichimoku Cloud can also be used to identify changes in momentum. When the cloud is expanding, it indicates that momentum is increasing. When the cloud is contracting, it indicates that momentum is decreasing.
Support and resistance: The cloud itself, as well as the Tenkan-sen, Kijun-sen, and Chikou Span, can all be used to identify support and resistance levels.
Entry and exit points: The Ichimoku Cloud can be used to generate a variety of entry and exit signals. For example, a bullish trader might look to enter a long trade when the price crosses above the cloud and the Tenkan-sen crosses above the Kijun-sen. A bearish trader might look to enter a short trade when the price crosses below the cloud and the Tenkan-sen crosses below the Kijun-sen.
Example Usage
The following chart shows an example of how the Ichimoku Cloud can be used to trade a currency pair:
Ichimoku Cloud chartOpens in a new window
www.fidelity.com
Ichimoku Cloud chart
The chart shows that the price is above the cloud, indicating a bullish trend. The Tenkan-sen is also above the Kijun-sen, confirming the bullish trend. The Chikou Span is acting as a support level, which could provide an entry point for long trades.
A bullish trader might look to enter a long trade at the current price, with a stop loss placed below the Chikou Span. The trader could then take profits at the next resistance level, which could be identified using the Ichimoku Cloud or another technical indicator.
Conclusion
The Ichimoku Cloud is a powerful technical analysis indicator that can be used to generate a variety of trading signals. It is a complex indicator, but it can be a valuable tool for traders who understand how to use it.
Additional Technical Considerations
The Ichimoku Cloud can be used in conjunction with other technical indicators to generate more robust trading signals. For example, a trader might use the Ichimoku Cloud to identify the trend direction and then use a momentum indicator to identify entry and exit points.
The Ichimoku Cloud is a lagging indicator, meaning that it can be slow to respond to changes in the market. It is important to be aware of this when using the Ichimoku Cloud to generate trading signals. The Ichimoku Cloud is most effective in trending markets
it is just one of the 10 indicators i have on 10 templates but each one tells me part of the the story. in this case i interpret it that there is a long way down to fall.
Comment:
The cloud is formed by shading the area between Senkou Span A and Senkou Span B. When Senkou Span A is above Senkou Span B, the cloud is green, indicating a bullish trend. When Senkou Span A is below Senkou Span B, the cloud is red, indicating a bearish trend.
So to answer that question, i was wrong it is actually bullish... but we are entering a bear market where Paper sells certain levels (ths pivots) during a bear market we will see a lot more down days, and the elliot wave theory inverts. Waves 1, 3 ,5 down, 2 & 4 UP.
So to answer that question, i was wrong it is actually bullish... but we are entering a bear market where Paper sells certain levels (ths pivots) during a bear market we will see a lot more down days, and the elliot wave theory inverts. Waves 1, 3 ,5 down, 2 & 4 UP.
Comment:
it's a lagging indicator
Comment:
not EWT, but the japanese Ichimoku clouds
Please check out Kauai Dave Pivot Traders on youtube. www.youtube.com/channel/UCNpY7S_s1cxw0cer4PyEEMQ
The Elliott Wave Principle states that market prices move in a series of waves, with each wave composed of five smaller waves in the direction of the trend and three smaller waves against the trend. This five-wave, three-wave pattern is known as a complete cycle.
Elliott waves can be classified into two main types: impulse waves and corrective waves. Impulse waves move in the direction of the overall trend, while corrective waves move against the trend.
Impulse waves are further subdivided into five waves, labeled 1, 2, 3, 4, and 5. Corrective waves are subdivided into three waves, labeled A, B, and C.
The Elliott Wave Principle can be used to identify the direction of a trend, as well as potential turning points in the market. It can also be used to identify potential trading opportunities.
Here is a summary of the key tenets of the Elliott Wave Principle:
Markets move in a series of waves, with each wave composed of five smaller waves in the direction of the trend and three smaller waves against the trend.
This five-wave, three-wave pattern is known as a complete cycle.
Elliott waves can be classified into two main types: impulse waves and corrective waves.
Impulse waves move in the direction of the overall trend, while corrective waves move against the trend.
Impulse waves are further subdivided into five waves, labeled 1, 2, 3, 4, and 5.
Corrective waves are subdivided into three waves, labeled A, B, and C.
The Elliott Wave Principle is a complex topic, and there is a lot more to learn about it. However, the basic tenets outlined above should give you a good starting point.
If you are interested in learning more about the Elliott Wave Principle, there are a number of resources available, including books, websites, and online courses.