weekend charting, page-41

morning all

Thanks mistyrains, great description of the cloud. Interesting to read about thickness. Thickness is created by volatility. Thinness by a stable price. Both of these are in relation to the time frame that you are looking at. The price has moved and the cloud shows where it has been. As far as the ease of a price entering a cloud due to its thickness I feel it more depends on the position of the red line ( faster mav 9 period). A rapid rise in sp that hits the bottom of a cloud will wait for the red line before entering (or at least try very hard). It is the same for exiting. This is where the thickness comes in. A thin cloud has the red line ready at the top of the cloud allowing a safe exit of the sp. A thick cloud creates a challenge for the red line to get to the top of the cloud. This is a volatile area for sp. It represents R&S so there are lots of points to hit. I also like the blue line ( slower mav 26 periods ) to be at the cloud before sp exits.