1. We have leveled out around 1122 over the last 3 days. The Chikou Span (green) is showing do immediate direction but is moving closer to price. If we stay ranging between 1000-1300 chikou will eventually start to push up against price action, and we could start to see a reversal.
2. The gap between Tenkan and Kijun is very wide, Kijun will stay flat for another 3 days unless we have a dramatic price move up, otherwise it will continue to fall after the 2015 high is taken out of the equation (once it is no longer 26 days behind current price). Price is bouncing off off the Tenkan (blue) as a resistance point. Remember Tenkan is the 50% re-tracement over the last 9 days, so price is in agreement with the tenkan line: over the last 9 days price is avg. of 1115. Price does not hangout around the mean very long.
3. Both Kumo Span A and Span B of the cloud are continuing downward and further away from current price. This shows strong momentum to the downside
4. Volume is increasing and showing bulls are fighting to hold above 1100, as orders get filled below these levels, support levels will grow weaker and eventually we will push through 1000 again to test the last local low of 875.
At this point the daily chart has not shown us any signs that bulls are in control, we have leveled out a bit, but until there is a move over 1200, we are sill in a downtrend.
You can look at the 6H or 3H charts to look for patterns of Higher Highs, and Higher Lows to catch early warning of a new trend, and then scale up to 12H to see if the same Higher High, shows on larger timeframes. Don't get caught in a Bull trap, wait for a confirmation on at least a 6H or 12H before trying to call the bottom. I personally will wait for the Daily to show me HH,HL.
2. The gap between Tenkan and Kijun is very wide, Kijun will stay flat for another 3 days unless we have a dramatic price move up, otherwise it will continue to fall after the 2015 high is taken out of the equation (once it is no longer 26 days behind current price). Price is bouncing off off the Tenkan (blue) as a resistance point. Remember Tenkan is the 50% re-tracement over the last 9 days, so price is in agreement with the tenkan line: over the last 9 days price is avg. of 1115. Price does not hangout around the mean very long.
3. Both Kumo Span A and Span B of the cloud are continuing downward and further away from current price. This shows strong momentum to the downside
4. Volume is increasing and showing bulls are fighting to hold above 1100, as orders get filled below these levels, support levels will grow weaker and eventually we will push through 1000 again to test the last local low of 875.
At this point the daily chart has not shown us any signs that bulls are in control, we have leveled out a bit, but until there is a move over 1200, we are sill in a downtrend.
You can look at the 6H or 3H charts to look for patterns of Higher Highs, and Higher Lows to catch early warning of a new trend, and then scale up to 12H to see if the same Higher High, shows on larger timeframes. Don't get caught in a Bull trap, wait for a confirmation on at least a 6H or 12H before trying to call the bottom. I personally will wait for the Daily to show me HH,HL.
_G