The market has come down hard for the past weeks and has finally settled and started showing evidence of a trend reversal. As the price action finds support on the 1 hour timeframe from the ichimoku cloud.
TECHNICAL LEVELS DEMONSTRATE THE PSYCHOLOGY OF THE MARKET. USING THE CONCEPT OF GROUP THEORY, I CAN GAUGE THE CLUSTERS FORMING WITHIN THE TREND. AS A TRADER, MY JOB IS TO VERIFY THE TREND BY DEFINITION (HIGHER HIGHS, HIGHER LOWS, & VICE VERSA) AND TO KEEP MY THINKING DISCIPLINED AND APART FROM THE LOSING TRADER MENTALITY.
THE ICHIMOKU PROJECTS STRONG LEVELS OF SUPPORT AND RESISTANCE THAT ALLOWS US TO GAUGE RISK/REWARD. BY USING MULTIPLE TIME-FRAMES TO DETECT THE SHORT-TERM FRACTALS WITHIN THE LONGER MORE PREVAILING TREND YOU CONFIRM A TREND BY DEFINING IT (LOWER LOWS AND LOWER HIGHS & VICE VERSA).
THE RSI GAUGES THE TIPPING POINTS OF MOMENTUM, LIKE IF A PENDULUM'S SPEED WAS GAUGED...
It has broken support and continues on a downtrend.
*Volatility to stay within range of the lower band.
*Deviance in the future from the lower band.
*Support from the $2.35 levels from July 2012.
(Thesis: If the large investors saw good value as
they did back in 2012, then they should be buying,
else we have no demand and price continues to fall)