Flat Kijun-sen tends to act as resistance both to price and Chikou-span.
Closed three days ago @105.83,
Closed two days ago @ 105.63, ,
Closed Friday @105.67, , . High of day touched and rejected by the Senkou-Span B a flat top attraction of Kumo trading.
Last three closes failed to break resistance @ 106.23 which is very close to a 50%(105.30) retrace of recent price action high from 12-2-15 to the low on 2-8-16
Thursday's close was the end of 17 periods (a kumo time line) as well as Friday's close being on the day before the 65th period since the high on 12-2-15 (another kumo time line). These time lines when together tend to produce reversals. A sharp move down could quickly exit the kumo in the 104.10 area which sees no support until 100.59 kijun support.
On the hourly chart look to see if the Kijun holds price at 105.66 the first line of support. followed quickly by the top of the flat kumo @ 103.25 A breach there could see prices test the 102.74 area. Further selling pressure could develop if the Daily kumo is broken bringing the cubes to the 100 area.
This trade would invalidate with a close above the Senkou-span @ 106.50
Should we enter this setup, our first take profit would be on a test of the Tenkan-line @ 103 and re-evaluate. Second exit would be near 100 provided price doesn't drift back into the kumo.
Trade responsibly and don't get greedy. Trading inside the kumo is not usually recommended. There really needs to be a sharp move here to be successful. Be mindful of the kumo top. A breach north of it could see substantial gains, before coming back.
Follow the new thread when I post, this one is done if we get a second close above the Kumo.
Happy Trading, ShirokiHeishi
I received your comment and I thank you for following me and liking what I do. Once I read your comment I was compelled to come and see your work
This specific trade failed because you did not consider the market structure. It wwas clear that the market broke a very important top.
Also, you have too many indicators and you know too much and try to apply it all to your analysis. You will always be confused this way
Anyway, I just thought I'd drop you this message and tell you that if you like to do some more ichi charts and analysis and I will be happy to critique them for you .. it will be my pleasure