As the dust starts to settle after the big storm, let's have a look at the technical picture.
- No continuation. No lower low. Price trades ard equilibrium of 1,1087.
- setup is neutral! -> Thin Kumo ahead, Price trades at levels of Tenkan, Kijun and future Senkou B. Kumo shades Price candle. Weak Tenkan/Kijun cross (light bias). Tenkan and Senkou A started to point up.
- Heikin-Ashi is back to neutral, candle reflects extreme this week. haDelta/SMA3 up again, testing zero line, this shows bias!
- EWO is at zero --> neutral
Weekly picture is NOT . It is absolutely neutral, with minor bias!
- setup is back to as Price is breaking above Kijun again. Price could not break Kumo and horizontal support at 1,0820. By the way this was the first warning signal yesterday after initial price collapse, that without follow through and real break it could have faded.
- Heikin-Ashi is with strong momentum.
- EWO is back to
- Supports: 1,1100 and 1,1050
Don't ask me why it is happening, don't even listen to any BS explanation by media and "gurus". Who cares? Just follow price action.
Three more important notes:
1. The chart clearly told you how to be prudent 2 days ago! Look two candles back: there was a , right between Tenkan and Kijun, with a slightly EWO read! This warned for mkt undecision ahead of ECB meeting. Prudent thing was to cut back positions and wait until the storm passes by. And based on and Heikin-Ashi rules a spike and close back above Kijun is a buy signal now.
2. Why do you think the big old guys (e.g. Ed Seykota) trade only higher time frames and closing prices? This is the reasong why!!! So don't tell me or lie yourself that the chart or market spoofed you. Yes, I know the candle looked heavy at some point. But by the end of the day it changed dramatically. Only EOD matters, the rest is a big noise!
3. I can not write it down enough times! Build the cahnging into your system! Have a solid risk management strategy! Be wise with position sizing and stop levels (based on risked amount of capital and ).
In that case you could not get stopped out even on such and idiot volatile day like yesterday!