Sell-Signal: There are multiple reasons why we are going short, once the purple line is crossed and the price is stagnating in the red zone. The red zones are defining strong support and are also part of the recently established green SupertrenD support channel (not visible in the chart). If you look at the total chart, then it will be the first strong signal once 1950 is broken. That's when we will enter a short position on the index. When 1850 breaks, then we lose the last support channel and will head down without support until the support channel which was established 1998 at the end of the Asian crisis.
We can not really tell you a target for now, because the channel will move up over time, but it might be in the 1500 area. We would manually lower our exposure once the price starts to jump back over 1950 and starts to build support.
I hope this was helpful.
If this indeed the correct interpretation then the outlook for the Korean market is extremely negative on a multi year view. And I imagine that whatever could cause such a decline would also impact the currency.
Thanks for posting this chart - one of the most interesting charts I've seen in years.