I am a big fan of Bill Williams indicators, the alligator, AO, AC and Fractals. So let's begin with them.
First entry - May 31
On may 29 A bullish divergent emerged, which is marked with a red circle. It was also confirmed by our AO, which showed a shift in momentum. In addition to that, AC showed Bullish TWIN PEAKS (marked with a red trend line in the AC indicator) which further confirmed the possible trend reversal.
At this time the RSI i moving in a oversold zone. The DMI and ADX are moving near 25 level and are showing no strong signals from bears or bulls.
We also bounced from our lower trend line
The bullish divergent + RSI oversold indicator were the firs that showed a possible reversal. I placed the first buy order at $ 7500, which was just above the bullish divergent highest high on May 25. It was hit on May 31.
June 3 - Fractal and next entry level
On June 2. we broke above our down channel.
A Fractal appeared on June 3. which is our 2. entry level at $7,821.
June 7 - Fractal and next entry level
In the period between May 31. and today we keep getting confirmations from our AO, which is telling that buyers are entering the market.
The Alligator (green, red and blue line) are narrowing in and can make a crossover, which is bullish.
The RSI is moving above 50 level and are now in bullish territory.
DMI and ADX are still neutral, but these are slow starters but strong indicators when it is trending.
We are waiting patiently for our next entry level and have set a stop loss at $7,410.
First entry - May 31
On may 29 A bullish divergent emerged, which is marked with a red circle. It was also confirmed by our AO, which showed a shift in momentum. In addition to that, AC showed Bullish TWIN PEAKS (marked with a red trend line in the AC indicator) which further confirmed the possible trend reversal.
At this time the RSI i moving in a oversold zone. The DMI and ADX are moving near 25 level and are showing no strong signals from bears or bulls.
We also bounced from our lower trend line
The bullish divergent + RSI oversold indicator were the firs that showed a possible reversal. I placed the first buy order at $ 7500, which was just above the bullish divergent highest high on May 25. It was hit on May 31.
June 3 - Fractal and next entry level
On June 2. we broke above our down channel.
A Fractal appeared on June 3. which is our 2. entry level at $7,821.
June 7 - Fractal and next entry level
In the period between May 31. and today we keep getting confirmations from our AO, which is telling that buyers are entering the market.
The Alligator (green, red and blue line) are narrowing in and can make a crossover, which is bullish.
The RSI is moving above 50 level and are now in bullish territory.
DMI and ADX are still neutral, but these are slow starters but strong indicators when it is trending.
We are waiting patiently for our next entry level and have set a stop loss at $7,410.
Trade closed: stop reached:
1 day chart
Bill Williams Indicators:
Stop lose hit at 7400 when we hit the lowest low in a 5 day period,
which is a bearish fractal.
AO still moves towards the zero line and is bearish.
AC still shows weaknesses.
The alligator moves away from each other again (bearish).
Other indicators:
RSI bearish
DMI bearish
Lower trend line (purple) can act as support. Let's see if it keeps
In the meantime, we await passively until there are clearer signals.
Bill Williams Indicators:
Stop lose hit at 7400 when we hit the lowest low in a 5 day period,
which is a bearish fractal.
AO still moves towards the zero line and is bearish.
AC still shows weaknesses.
The alligator moves away from each other again (bearish).
Other indicators:
RSI bearish
DMI bearish
Lower trend line (purple) can act as support. Let's see if it keeps
In the meantime, we await passively until there are clearer signals.