Unisteel

Re: Unisteel

Postby blid2def » Tue Sep 23, 2008 3:07 pm

Now that you bring up the saucer shape - actually the most remarkable point about that chart is how well the kumo base worked as a resistance for the price during that period. For those who're unaware: when you see a price data point and a kumo cloud data point at any vertical timeframe in the chart - keep this in mind: the 2 data points were not plotted at the same time. The price data point was plotted on the close of the day itself, but the kumo cloud's data point was plotted 26 periods ago.

In other words, the cloud base from 25 Feb to 14 Apr was actually created somewhere between end Jan/early Feb to late Mar. Of course, the cloud borders aren't 100% effective - but for folks trading, they act as good guides for stop-loss points. For example, in the trade above, for the more aggressive trader, he could set a trailing stop loss at a couple of bids below the upper cloud border after the bearish crosses were spotted. A super aggressive trader would set it a couple of bids below the lower cloud border (ie. anticipate the price hitting / slightly breaking the kumo base, and bending back).
blid2def
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