Warning from Ichimoku Kinko Hyo (with original parameters)

Signal for shorting ETHUSD if Chikou Span (green line) goes below Tenkan Sen (blue line) at the closure of a 4h candle.

Then I will look for an entry point

Comment:

Actually we could consider that the Kijun Sen is making a resistance on the Chikou Span. In that perspective we could start shorting now.

The only issue I have right now is the three red candles in a row we just had which indicates that a green candle may be forming right now.

Comment:

On the hourly chart:

Tenkan sen (blue line) should be a resistance

Comment:

(a) ETH may find some support on Senkou Span A (SSA)
(b) Tenkan Sen (blue line) and Kijun Sen (Red line) could be a support for Chikou Span (green line)

Comment:

On the hourly chart

(a) As expected the lower part of the rising wedge showed some support
(b) now both Kijun Sen (red line) and Tenkan Sen (blue line) will be a support
(c) but Senkou Span B (upper part of the cloud) will be a strong resistance
(d) Chikou span (green line) will probably hurt a resistance on its Kijun (red line)

Trade active:

Let's go down now

Comment:

Comment:

Huge breakdown but... Long positions on ETHUSD are still very high => Huge potential to go down.

Comment:

I'm still bearish on Ethereum however it is not the moment to enter a short position. Look at the bullish divergence on the daily timeframe. RSI is still in the oversold territory.

Trade closed manually