First time poster here, so please correct and criticise me.
Just wondering why more people dont use Ichimoku charting, i found it very interesting and helpful.
This here taught me a lot
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:ichimoku_cloud
View attachment 217529
Taking a look at the this chart below you can make a couple of observations.
Firstly looking at the black circles for historical evidence.
Circle 1, shows an early upward intercept of the red line through the blue line (Tenkan-Sen and Kijun-Sen) within the cloud (shaded area) suggesting a neutral bullish trend (nothing too strong), the SP then acted accordingly.
Circle 2 shows the stock price intercepting the upper cloud line (shaded), the red line diverged from the blue and the stock price also intercepted the red and blue line, the lagging green line known as chikou span (circle 3) is also shooting into the sky, all strong bullish indicators, we then experienced a great run. Obviously well timed with anns proving the volume needed.
Circle 4 shows a downward blue line intercepting the red line, where the intercept occurs within the shaded cloud, suggesting a neutral bearish trend, we then experienced a slight down trend. During that the time the green line was trending downwards, another bearish indicator.
So then looking at where we are now with the green circles, in circle 5 the red line may intercept the blue line in a flat or perhaps upward trend depending on this week, suggesting a neutral bullish trend, this is supported by an upwards trending green line, (circle 6). To make this trend stronger, an increase in volume really backs it up, fingers crossed.
So as a IMO prediction we will be looking at a pretty steady few days with a slightly bullish trend if this occurs it will prime us to have the stock price exit up through the cloud and creating a strong bullish trend. Just as we saw in the last big run. A well timed Ann will kick the volume up and really get this going as well.
Of course all IMO, please DYOR.
