Captain_Walker

CHINA 50! ROCK OR BUST?

Long
OANDA:CN50USD   China A50
The China 50 took off like a rocket, leaving behind the DJI and other country indices. This is the CN50's biggest rally in a year. State media agencies talked up the index promising a post-coronavirus boom. Then the China Securities Journal made similar promises.

This caused an almost 6% charge north in one day! However, there did not appear to be significant underlying volume - which is a bit worrying.

But volume isn't everything. I show two points on the chart that I think may be comparable. In technical terms the two recent weekly candles are the biggest since 2013. The momentum seen on lower time frames is ridiculous. In these situations a minor correction is expected (not predicted), followed by follow through. If you have enough 'bottle' and money to burn go for it, on a lower time frame.

Disclaimers: This is not advice or encouragement to trade securities. No predictions and no guarantees supplied or implied. Heavy losses can be expected. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
Comment: Expect anything - the Golden rule in trading!
FED balance sheet 42% of GDP @ 2020-01-26. Does money have value anymore? [Different perspective on the virus https://youtu.be/NjTdvALChwk ]

Comments

Hey I like your analysis on this. I'm curious what are these green waves hovering over and under these candlestick charts? What's the name of this indicator?
Reply
Captain_Walker forexdragon785
@forexdragon785, It's the GMMA (Guppy Indicator) - free on Tradingview. Chris Moody has done some exceptionally good work on this indicator here

It gives a good visualisation of what's happening with price. Darryl Guppy - the inventor of the GMMA - developed a very unique trading system using it. See https://www.newtrader.club/2015/06/22/trading-with-guppy/

I use it only in conjunction with the ATR indicator (amber line). I've notice a high probability of price bounce when the ATR is sitting just above or below the last large EMA of the GMMA (never perfect of course).
Reply
forexdragon785 Captain_Walker
@Captain_Walker, Hey thanks for the information buddy. This is very interesting and I enjoy the look of it. I also use MA and EMA, and I have to say the GMMA indicator visually clarifies it many times better.
+1 Reply
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