Re: Ichimoku III--the tenken and kijun
image hosting jpg
The most significant event on this chart shows why many traders use the ichimoku as a standalone.
Look to the west in the oval area. When the trend is fresh (This case--DOWN.) and the tenken and kijun have just dropped under the cloud, don't even think about going long. People talk about divergences. When you get the wick hitting the top of the cloud, and the TK combo just broke under it, "Hello!!!"
That is all you need to know to go short. The candle was still contained under the TK combo, which is further confirmation. Finally the TK was dipping, and the trend was fully ignited.
I haven't gotten into any cloud properties yet, but how many times have I talked about the cloud acting as equilibrium? When the candles drift farther than usual away from the cloud it becomes fresh, and in this case will act as R. Once the candle found its way over the TK combo, the cloud is going to act as R. So, at this point, a long could have been executed, but the TP would have been at the bottom of the cloud. Price action found its way into the cloud, but this is a time you want to disregard the fact it is above the TK and consider the equilibrium factor. You can see price action got real volatile after the entry.
As far as future action is concerned, notice how the candles are beating up on the fresh cloud. Eventually the cloud becomes vulnerable and the candles are going to have its way and find its way in. For the time being the tenken and kijun have straight lined near the bottom of the cloud, so it is expected for it to be strong R. One of 2 things will happen, price will continue dipping while the tenken and kijun follow close behind. Why is following close behind significant? It will enable the candle to cross easily back over the combo. It would act as support. The next try at the cloud should thrust the price through it. Once the TK combo catches up, then it will act as additional support near the top of the cloud and bully it out.
The other possible scenario is to see a very strong and volatile move from the current area, and price bridges the tenken and kijun, which would also put it inside the cloud. It is the least likely of the scenario. Both have leveled, which strengthens the R at this point.
As far as where price could be headed in the future, we would be assured it would be headed much higher if we see a break on the other side of the cloud, and in knowing the tenken and kijun will add the additional support. I'll get into additional cloud properties later, but this chart is showing a clear shot at 1.3400. The daily is showing initial strong R will be seen at the kijun at 1.3280. If we get a close on the other side of it, then the fresh cloud currently at 1.3697 will act as strong R.
The beautiful thing about the ichimoku is that it adds such a predictable ebb and flow. We have already seen it, to a degree by combining the different TF's, and we'll see it further when we start to combine the other elements with it. This whole thing gives meaning to the old proverb, "He looks like he is just floating along on a fluffy cloud."
hello sir,
i hope you are having a nice time with your best fren i.e ur wife and tucker boss, and i just pray that u people always enjoy a happy and prosperous life, my blessing for you and ur family.
and sir, this is the post i was referring to, i was interpreting it wrongly, u were saying that stock has a shot at 1.4000 if it clears kijun, but i thought u r telling that it will go up to 1.4000 and at that time, we shd short it, its clear now
image hosting jpg
The most significant event on this chart shows why many traders use the ichimoku as a standalone.
Look to the west in the oval area. When the trend is fresh (This case--DOWN.) and the tenken and kijun have just dropped under the cloud, don't even think about going long. People talk about divergences. When you get the wick hitting the top of the cloud, and the TK combo just broke under it, "Hello!!!"
That is all you need to know to go short. The candle was still contained under the TK combo, which is further confirmation. Finally the TK was dipping, and the trend was fully ignited.
I haven't gotten into any cloud properties yet, but how many times have I talked about the cloud acting as equilibrium? When the candles drift farther than usual away from the cloud it becomes fresh, and in this case will act as R. Once the candle found its way over the TK combo, the cloud is going to act as R. So, at this point, a long could have been executed, but the TP would have been at the bottom of the cloud. Price action found its way into the cloud, but this is a time you want to disregard the fact it is above the TK and consider the equilibrium factor. You can see price action got real volatile after the entry.
As far as future action is concerned, notice how the candles are beating up on the fresh cloud. Eventually the cloud becomes vulnerable and the candles are going to have its way and find its way in. For the time being the tenken and kijun have straight lined near the bottom of the cloud, so it is expected for it to be strong R. One of 2 things will happen, price will continue dipping while the tenken and kijun follow close behind. Why is following close behind significant? It will enable the candle to cross easily back over the combo. It would act as support. The next try at the cloud should thrust the price through it. Once the TK combo catches up, then it will act as additional support near the top of the cloud and bully it out.
The other possible scenario is to see a very strong and volatile move from the current area, and price bridges the tenken and kijun, which would also put it inside the cloud. It is the least likely of the scenario. Both have leveled, which strengthens the R at this point.
As far as where price could be headed in the future, we would be assured it would be headed much higher if we see a break on the other side of the cloud, and in knowing the tenken and kijun will add the additional support. I'll get into additional cloud properties later, but this chart is showing a clear shot at 1.3400. The daily is showing initial strong R will be seen at the kijun at 1.3280. If we get a close on the other side of it, then the fresh cloud currently at 1.3697 will act as strong R.
The beautiful thing about the ichimoku is that it adds such a predictable ebb and flow. We have already seen it, to a degree by combining the different TF's, and we'll see it further when we start to combine the other elements with it. This whole thing gives meaning to the old proverb, "He looks like he is just floating along on a fluffy cloud."
i hope you are having a nice time with your best fren i.e ur wife and tucker boss, and i just pray that u people always enjoy a happy and prosperous life, my blessing for you and ur family.
and sir, this is the post i was referring to, i was interpreting it wrongly, u were saying that stock has a shot at 1.4000 if it clears kijun, but i thought u r telling that it will go up to 1.4000 and at that time, we shd short it, its clear now
