Daily: - haDelta+ negative divergence - haOscillator negative divergence I really wonder how Heikin-Ashi candles will look after close today and especially tomorrow. :-) - Price is way far above its equilbrium (Kijun is at 5190)
4H: - Quite a strange Heikin-Ashi long wicked candle: bullish continuation failure - haOscillator is already below center line! -> divergence - haDelta is down to zero - EWO started to build a negative divergence
Supports are: 5305 / 5275 / 5190
If you were bullish, and managed to hold your longs so far, then BRAVO! Now just start to think about short and mid term risk reward under the shadow of these divergence signals.
Comments
Kumowizard
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pull pull pull... a never ending trend :-) obviously it will end sometimes, but no one knows when.
Kumowizard
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For the record: it is still NOT a sell signal. But consolidation ahead is getting more likely.
A-shot
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@Kumowizard, Im actually awaiting a big long red candle - the one that follows these small green days and erases weeks of trading. Some Black swan event, to make everything back to sane levels. But i want to be out before it
hex0x40
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@2use, Like the one that is forming :) ?
A-shot
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@hex0x40, Well, it did make a red day and i did size down. But still it can make a large 1%+ red candle, then have another one. This happens, you cant be sure it will be a 2% move but once it is you understand that it just happened - you are down already
hex0x40
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@2use, Indeed :) !
A-shot
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I caught myself on a thought that investing in the bull now would be an exceptional situation, while i think one needs to make money on usual, normal - not abnormal - situations. i rather place a trade on something i assume will happen with a degree of confidence, than play an unusual situation. The run has to end somewhere, at least for a breather
Kumowizard
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@2use, I can only agree with you. To be honest I did not have confidence in this bull run, I did not participate. I even tried to do some small swing shorts at some points, with no luck. I don't have any confidence in short now either, but this can quickly change. This post is really just a question mark. Maybe it won't pull back, maybe it goes straight further up.... but these signals today are interesting to share.
A-shot
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@Kumowizard, That is the exact reason why i don't partake much - i should NOT trade Maybe. i should trade what i know . clear channels, clear breakouts - and have 100% sureness in my trades..knowing that part of them will still fail. Trading "maybe" - is counter intuitive. Also, at any moment of such if you placed a short and...a) it did work! - you would say i told you so b) it didnt - move on , the market has short memory. But the point is that shorting at the bottom is kinda not the best, being long at this point is also riskier than being long from the bottom. I don't think this will be the best return, although you can miss - but patience is virtue here