hi paulbooma, I have been enjoying this thread. I am impressed with the ichimoku charts, ( and the thread in general) so I dummied up your BLY chart in my own package, and overlayed it with 3 pitchforks ( my preferred tool ).
The boundaries of the cloud are the brown and tan lines. Tenkan sen is green, Kijun sen is red, Chikou Span is black.
I have overlayed pitchforks in green, purple and blue. They represent dynamic resistance and support levels. resistance Is anchored at the swing high, support is anchored at the swing low, and the Median Line is taken from the swing point immediately prior, and bisects the line connecting the support and resistance points. The tangs for support and resistance are paralleled to the ML.
On the BLY chart you can see that the green ML pretty well pinned the swing point on april 24, which give rise to the blue fork. The stop loss point is the blue support tang, once it is violated, the fork is regarded as invalid ( although you can see they still have useful information). The blue ML and the support tang give you the price channel, and the resistance tang on the purple fork give you the next dynamic resistance. If the blue support tang fails, the purple ML is under it( although MLs have a high probability of a gap through them.
I have also charted BEN. Same deal. I pin the swing point as 3 days ago with the blue fork, I will use the blue fork as my entry and stop loss if I decide to trade it, and BEN beating the black resistance tang of the prior fork as my cue to take the trade. I am interested in your take on it from an ichimoku point of view. I used BEN because it is a pretty clear cut illustration with few complicating issues.
Any other comments are welcome, as this is more about TA then either of the 2 equities.
