Bullish kumo breakout on the D1, all ichimoku bullish conditions met (Golden TK cross, green (bullish) Kumo breakout, lagging span above price, clean break through Chikou span A & B. Similar conditions met last on 4th December 2017, leading to a 38.24% surge to the ATH of 7725.
VPVR shows price has moved above, suggesting area high volume activity will form a strong base.
The daily time frame shows the bullish breakout was unsuccsessful, and price has returned to its support level.Below is an update, click on below link to see chart:
Let's take a larger view of 1 week candles.
The rectangle shows a clear ceiling which was hit 3 times before a clean bull break to the ATH. The resistance turned to support and was tested twice as a juicy pennant formed, (or equilateral triangle). I am hoping for a bullish exit from the triangle in the near future or coming month or two. Otherwise it is entirely possible there will be another retest of support. However it should be noted that a fourth test of support will likely break down.
I will only turn bearish should the rectangular order block be broken, in which case I would exit the trade when there is the retest of the support/resistance.
Please ask any questions if anything is unclear!
WarrenDavison
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Hi, was there a particular reason this pattern did not play out? That appears to be a rather significant reversal from your buying point.
BAMsoul
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@WarrenDavison, Hi Warren thanks for the question. Sometimes promisig trades just don't play out and it's as simple as that. An indicator like Ichimoku is based on agregates of past data, so we are looking to see if past behaviour indicates future behaviour. In this case it did not, but as long as you have good risk mangement you should be fine (that is never risking more than about 2% of your investing money on any one trade). As they say history doesn't repeat but it often rhymes! I am personally still in this trade because I have a higher tolerance for risk and this asset takes its time to make moves.
WarrenDavison
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@BAMsoul, thanks so much for the detailed explanation. I really appreciate you taking the time.
Let's take a larger view of 1 week candles.
The rectangle shows a clear ceiling which was hit 3 times before a clean bull break to the ATH. The resistance turned to support and was tested twice as a juicy pennant formed, (or equilateral triangle). I am hoping for a bullish exit from the triangle in the near future or coming month or two. Otherwise it is entirely possible there will be another retest of support. However it should be noted that a fourth test of support will likely break down.
I will only turn bearish should the rectangular order block be broken, in which case I would exit the trade when there is the retest of the support/resistance.
Please ask any questions if anything is unclear!