(II) Weekly: The Bearish Cycle is active since Stochastics had formed a Bearish Crossover above 80% line and then passed it and went lower, while we experienced a 15 Week Break Out of the Price on the Upper Bollinger Band. Bollinger Bands converge and we expect a future Squeeze. The Ichimoku Cloud formed a flat bottom, it did not have the power to go any higher and form sharper upper and lower boundaries (Senkou Span A and B). Chickou Span found Resistance at Senkou Span B. On the Upper Bollinger Band we notice 4 Indecision Candles, one after the other (Spinning Top, Doji, Spinning Top and Spinning Top) and those are followed by a bearish candle. A bearish Fractal was formed on the Upper Bollinger Band, which is a sell signal. Again, the Upper Spikes indicate that Bears were entering the Market and at the first opportunity should form below the Lower Bollinger Band on the Weekly Timeframe, too. Price crossed Tenkan Sen and it is flat, indicating a sideways moving market. When Tenkan Sen has slope to the downside, Price will have the potential to reach the Kijuns Sen's Plateu at ($8,802.28). But, if that Support breaks, the Price will test the level at ($7,418.00) which is the Senkou Span's B Plateu . However, if the Price drops to the Middle Bollinger Band, then it has to go to the Lower Bollinger Band, at the level ($1,626.00), after it tests the Support at ($3,391.00). The fact that we meet twice the Lower Bollinger Band at the level ($1,626.00) is not random. The upward movement was ready and correction has already begun. Another indication is the 9 Week Overbought Conditions. So we should prepare for a fall on the Weekly Timeframe. Additionally, Price does not seem to have the power to stay above the level at ($11,371.00), due to the Indecision and Spikes that occurred there.
On the Weekly Timeframe we have experienced a big Price Breakout to the upside. If we notice a Price drop to the Middle Bollinger Band and the other two Bollinger Bands Squeeze, then we should expect a fall to the Lower Bollinger Band. We can use Psychology in Trading because it shows when Investors are in emotional and financial pain. When the Reversal begins and Price breaks some levels of psychological importance, ($10,000.00) and ($8,000.00) for instance, those who bought only based on Speculation will be "Underwater" loosing money. Panic Selling will take place and it is expected to lead to a Sell Off, with big bearish candles and downside slope, as well. (Bearish Momentum)
On the Weekly Timeframe we have experienced a big Price Breakout to the upside. If we notice a Price drop to the Middle Bollinger Band and the other two Bollinger Bands Squeeze, then we should expect a fall to the Lower Bollinger Band. We can use Psychology in Trading because it shows when Investors are in emotional and financial pain. When the Reversal begins and Price breaks some levels of psychological importance, ($10,000.00) and ($8,000.00) for instance, those who bought only based on Speculation will be "Underwater" loosing money. Panic Selling will take place and it is expected to lead to a Sell Off, with big bearish candles and downside slope, as well. (Bearish Momentum)