The time cycle on the chart is 4 hours. In part 3 I said there were other indicators I used to determine the STRENGTH in MO. The above chart is weak, and the chart is for the S&P 500
as a proxy. Unlike the chart in Part 3, SPY
is weak, not strong. To help you understand why, here they are, "Don's Top Ten Technicals": 1. The Ichimoku Cloud
is FALLING relative to structure to the left. 2. Prices are trading above the cloud, but sagging badly. 3. Prices are trading BELOW the thick red Ichimoku Cloud
Conversion line. 4. The thick red conversion line is beginning to FALL. 5. The thick black line is the Ki jun-Sen baseline of the Ichimoku Cloud
and this is FLAT to down. 6. The indicator on the top of the page is RSI
, and this is NOT strong. 7. The top-side middle indicator is vortex
and it is NOT strong (red over green). 8. The Top (bar-type) indicator measures the "phase energy" of the stock , and this is WEAK. 9. The red fractal
arrows are DOWN. 10. Look to the far right on the chart, around $63.00. You will note a yellowish line on top (lips), with black dots below (teeth), and a blue line (jaw) below the black dots. Now, all three are CLOSING, correct? This is where I ask you to use your imagination and envision these three items as the "closing of the separated jaws of a feeding alligator
, and the alligator
will go to sleep". This is a negative indication of a change to a downtrend.
is GETTING WEAKER, and I believe it will continue to do so until the confluence of technicals tells me differently. This is Part 4 of 4 in this series. It has been my intent that after you view MO and SPY
you will be able to tell the difference between strength and weakness. The phrase "up in smoke" for Altria and Phillip Morris was an unintended pun. I hope this has been helpful, entertaining, and informative. Yours for better trading, Don.