I would like to long "USDJPY" because the price is likely to make new high after correction. After second half of the year, I will change my strategy from long to short. Analysis: 1) Price is moving in wave {B}-(C)-3. 2) Price shows alternation between subwaves 2 and 4. - subwave 2: sharp correction (more than 78.6% retracement of subwave 1) - subwave 4: sideways correction (at least 23.6% retracement of subwave 3) 3) 14-day slow stochastic oscillator shows positive correlation with the price action. - Crossing back above the oversold 20 line can be used as a buy signal. 4) Price is above the cloud. The picture is still bullish. Thicker cloud should provide great support. 5) 23.6%-38.2% retracement level looks like a good buy zone. 6) 2.618 extension level: (C)=2.618(A) looks like a reasonable upside target. - It also lines up with 2016 high when BOJ decided negative interest rate policy.
Let's see how it goes!
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Weekly chart:
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Today's and yesterday's simple moving average of previous n bars: MA(0) = {P(0) + P(1) + ... + P(n-2) + P(n-1)}/n MA(1) = {P(1) + P(2) + ... + P(n-1) + P(n)}/n Subtraction: MA(0) - MA(1) = {P(0) - P(n)}/n From MA(0) - MA(1) = {MA(0) - MA(1)}/1, MA(0) - MA(1) can be regarded as the slope of tangent line. Definition of Momentum: Mom(0) = P(0) - P(n) Conclusion: Momentum is proportionate to the gradient of simple moving average.
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aibek
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@Mizuki32, Hello Mizuki! As always a very well tailored and explained chart!!! Appreciate the things you do and generous to share with community! Best wishes, Aibek
aibek
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@Mizuki32, by the way it's Ultra-Japanese ))) - Yen + Ichimoku clouds + Heiken Ashi candles + Japanese lady as a tailor ;-)))
Mizuki32
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@aibek, Haha:) Thank you for your compliment, Aibek. I wish you will have a great year 2017!
aibek
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@Mizuki32, )))) No this is crystal pure truth like a water from Fujiyama mountain! Keep posting please! Thank you for wishes! Best of luck to you and every success!