Quote:
Originally Posted by 4xStar
On the IKH, was there any signal that could have alerted to the big drop the G-Y took overnight? Andrew saw mixed signals the other day, she was overdue for a decent pullback and I just read there is a tendency of price to return to the Kijun line which is "equilibrium".
On the 4 hour there was all kinds of action ... it looks like when price hit the kijun line, that was time to bail .. or if not, when it broke the A span. But I would appreciate input from those more experienced 
Andrew do you think it is important to use the 3h timeframe instead of the 4 hour? If so, there is a way to do that in MT4, I can post the instructions here for those who want to use a 3 hour. |
Sorry about the delay responding here, 4xStar. I'd like to see some more discussion here, so I'll try to be more vigilant.
Going back to 06/26-06/27, IKH produced little signaling the reversal with any really precision. But, there is an asymmetry between price and the kumo that did indicate a fall was probable:
One thing easily noticed is that the very thick kumo ascendant @ about a 45 degree angle from 06/12 tapers off and turns sideways following the decline in price on 06/17-18. The kumo steps up mildly after that, but the angle and density are gone. Now, Contrast the drop off in the kumo with the relatively steep ascent in price from 06/23-06/25. See any divergence here? This is where price and the cloud are telling different stories. The break and then failed re-test of Kijun-Sen late 06/26 - early 06/27 confirmed this. In addition to this, and what really signaled the reversal here was the evening star/bearish engulfing pattern on the 0300-0900 ET 06/26 candles.