timwest

Shanghai Class A Index - Daily Weekly Time@Mode Downtrend

INDEX:XGY0   Shanghai Class A Index
1090 9 17
11 months ago
Time@Mode is a powerful, simple, building-block method to describe the trend in any time frame.

Refer to my many other Time@Mode charts here at TradingView.

Looking at the rally in XGY0             ( Shanghai Class A Index             ), you can see in early 2015 that it built 8 weeks at the 3400 level and once it broke out of that range it moved up for 8 weeks. Once it rallied to nearly 4800             and corrected as time expired on the rally (8 weeks), it built a higher, more risky base of 4 weeks from which it advance to 5400 in 4 weeks from the 4-week base.

Time ran out for the rally and XYG0 collapsed under the base at 4400-4500 and returned to the 8-week base at 3400 where it found footing. Along the way, it had built a 6-week distribution zone from which a 6-week decline unfolded into the October time frame. A lower distribution zone was formed at 3200 for 6 weeks, but prices advanced from that level and advanced for 6 weeks where time expired once again at the 3800 level.

6 weeks built in an uptrend at the 3600 level (see purple '6') and prices then advanced and an 8 week accumulation set-up at 3700 (see purple "8") and it seemed set to fly as I drew in the yellow line and a forecast to 4000-4100-4200-4500. But what happened at the 3800 level is the interesting part. Each week it touched 3800 it added a week to the distribution level from before from 3800-4200 but 3800 became the most important and most powerful level that was controlling prices. As prices move away from 3800-3700, it sets up a 10-week decline that has wide downside projection.

The market usually will react at previous important "modes" like the "6-week" 3200 level. The circuit breakers assured we would stop there today, but for now I wanted you to see that XGY0             has been operating very nicely using Time@Mode methodology. You can apply this technique on any time frame in any liquid market.

Note: I don't want to put "SHORT" on this chart because that wouldn't be fair to a market that is locked limit down 7% tonight.

If you have any questions, reply below or come to our chat room - "KEY HIDDEN LEVELS".

Here's to a successful 2016.

Tim

12:47AM EST January 7, 2016

10 months ago
Comment: Notice how the market bounced from the 6-week lower mode labeled in brown from the bottom this past fall. Watch these KEY LEVELS for key support/resistance.
10 months ago
Comment: the 3200 level was support from the 6-week mode from Sept-October
10 months ago
Comment: Looking even closer I see 12-weeks just a little lower than where 10-weeks is labeled. Someday when we can get this automated, we won't miss a signal at all. The level is at 3740 +/- so THAT 3740 is the most important level on the chart and portends a 12-week decline started last week.
9 months ago
Trade closed: target reached: Time has run out for this decline. With the US market bottom and the turn in crude oil, I think we can look for a meaningful rally from the Chinese market to follow. Close out all shorts AT THE MARKET.
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Victor.Y.F
11 months ago
Nice call Tim! This one could do a deep diving to 2400-2600 area and a very good buy over there, I guess it's next week after NIKKEI225's intervention by BOJ and of cause a nice buy USDJPY as well. Today's close is 3125, data was delayed and it need an adjust for more accuracy.
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IvanLabrie TOP
10 months ago
Cheers!
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timwest PRO
10 months ago
snapshot
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timwest PRO timwest
10 months ago
The weekly bars aren't showing (using Multi-Time-Period-Charts)
+1 Reply
Victor.Y.F
10 months ago
Thank you, Tim! This one will bounce off of 2613 area which is 200 weeks SMA for about 2 months, it’s copying from XAUUSD untill PBOC and commercial banks from China can short their gold reserves and short their Renminbi currency from the “market” which has not been built in mainland of China. Before that forex market will be built, I think this one will be a very very long term bear market.
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Victor.Y.F
10 months ago
I think it’s very strange that IMF never suggested that a forex market had to be built before PBOC devaluate Renminbi currency. Now we all can see this market has an impact to US stocks like APPLE and NIKE so on. The YEN vs. Renminbi is winning. Capital flow from China to Japan and YEN is too strong to support US market and will cancel ECB’s money policy. So everything is connecting.
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timwest PRO
9 months ago
Added in the 8week rally setup, that failed, then turns into an 8week decline.
snapshot
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Victor.Y.F timwest
9 months ago
Thank you Tim, a nice time at mode as always! I can only see a bounce to 4000 for now, I'm not sure that this can go 5500.
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2use
9 months ago
I checked the update and actually i did the same out of my own analysis - glad to see your regular updates to charts. Thanx
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