Hi.
I want to show you two SPX charts, one for 4H and other for 2W.
And tell you why I chose them, as well as how uncertainty can affect the price.
Left screen.
Enough signs for a decrease.
1. Spin top.
2. Gap down.
3. Tenkan-Sen break.
4. Bearish divergence.
We can say that the next month will develop a downward movement.
But in what larger situation is this movement embedded?
Right screen:
In lifetime of most of us, SP500 did not make such long swings in the cloud such size.
There are subtleties here.
1. Kijun-Sen has crossed Tenkan-Sen again.
Candles over of lines. Kind of a bullish picture...
But this crossing is inside the cloud.
2. Tenkan-sen is dangerously looking down and may well cross Senkou-Span B.
3. Senkou-Span A is looking downward, hinting at a possible downward expansion of the cloud...
The thinking is simple.
If 4H chart has started a down movement, it is enough for a month or even 5 weeks.
During this month, two candles down on 2W chart will cause the indicator lines
form a cross with bottom edge of the cloud, and given timeframe it will be an ultra-bearish signal.
This is what I wanted to show.
One timeframe can start a process on another timeframe.
Given DXY strengthening, none of this looks rosy.
I want to show you two SPX charts, one for 4H and other for 2W.
And tell you why I chose them, as well as how uncertainty can affect the price.
Left screen.
Enough signs for a decrease.
1. Spin top.
2. Gap down.
3. Tenkan-Sen break.
4. Bearish divergence.
We can say that the next month will develop a downward movement.
But in what larger situation is this movement embedded?
Right screen:
In lifetime of most of us, SP500 did not make such long swings in the cloud such size.
There are subtleties here.
1. Kijun-Sen has crossed Tenkan-Sen again.
Candles over of lines. Kind of a bullish picture...
But this crossing is inside the cloud.
2. Tenkan-sen is dangerously looking down and may well cross Senkou-Span B.
3. Senkou-Span A is looking downward, hinting at a possible downward expansion of the cloud...
The thinking is simple.
If 4H chart has started a down movement, it is enough for a month or even 5 weeks.
During this month, two candles down on 2W chart will cause the indicator lines
form a cross with bottom edge of the cloud, and given timeframe it will be an ultra-bearish signal.
This is what I wanted to show.
One timeframe can start a process on another timeframe.
Given DXY strengthening, none of this looks rosy.