Wednesday, July 16, 2014
The two positions established were stopped out. The fortunate thing that can happen for these trades were minimum risk allocated.
Aggressive sellers established the position as per previous post were be in relatively comfort zone at the moment. Chikou span has cut below the ichimoku cloud lo, reflecting the bearish mood.
Price action itself may be in for a wild move prior to consolidation in a range move looking at tenkan sen and kijun sen. Looking at the price action at a distant away from the kumo cloud, to square off some for profit maybe an option, and to reestablish later as price moves closer to the ichimoku cloud.
Thursday, July 10, 2014
Another position has been added as mentioned in previous post.
Price action made an uptrend there after, storming through the ichimoku cloud, but unable to break through the ichimoku cloud hi.
Tenkan-sen and kijun-sen are now converging towards each other, and tenkan-sen may be cutting above the kijun-sen. These actions are now happening in the ichimoku cloud.
Chikou span is touching the cloud lo, a thin cloud, which may be of a concern.
Price action now is below the cloud lo. The concern now increases as compared to the post made previously, mainly due to the thin support at chikou span. Understanding the mechanics behind the ichimoku charting, it simply means the current price action is challenging the trades (longs/shorts) made in the past periods.
Ichimoku Strategy ahead: Stop loss level has been raised. While bull may stand a chance, the same applies to the bear. Aggressive sellers may want to start positioning themselves. New bull entrants may want to see tenkan-sen cutting above kijun-sen with price action above them.
Monday, July 7, 2014
Price action has continued to trend lower since the position being established last week.
It is now it the kumo area, or the so called ichimoku cloud area.
Examine the current ichimoku charting, the tenkan-sen is below the kijun-sen, and in a diverging manner. This is similar to when the previous position being closed. The downward trend made during the last few days may now in exhaustion, and the range price activity in the kumo cloud may just provide the "rest" needed by the price action itself.
Looking back to the chikou span, it is now below the kijun-sen. It is however, not below the kumo cloud lo yet. And looking forward to the kumo, which is now turning bearish, could be a sign for the trend change.
There are some bearish signs from the ichimoku charting, but not yet a trend change.
Strategies ahead, there are away 2 sides of the trades, buyer or seller.
For seller, perhaps it may be good to enter when the tenkan-sen and kijun sen converge, or when price action clearly below the kumo cloud, the boost from chikou span below the kumo cloud could add on to the selling positions.
For buyer, which will be the position I am planning to take. Continue to add on more positions, taking minimum risk with stop loss at same level.