Kumo is showing some middle balance of price. Thick Kumo means big support or resistance. Price will not easily cross
here. Thin Kumo or a twist means low support or resistance. Here the price might cross with higher probability.
In the daily chart above we can see that price is at that twist area now.
To get some confirmation about the actual resistance we can check with ChikouSpan (green lagging line): Today
Chikou is already deeply in the red Kumo which means that resistance has melted too.
After having posted the daily chart the price broke Kumo and came back above Kumo to the end of the session.
Both scenarios are still valid. This means i am not not only seeing the short path from here.
Absolutely agreed. I am using at the moment a daily GFT chart for the Dax itself. There the Kumo is not thin and has not been touched till now. I also love to look at the SPX for confirmation at the same time. There also no thin Kumo and no touch till now. From cycle perspective I am expecting a bottom between August 26 till Aug 30. Of course that analysis could be wrong as well.
By the way: I love your Journal here! Interesting source which I have subscribed in the meantime.
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Why are Ichimoku charts different?
There are standard setting which a user can alter. And there is the possibility in the daily to use only cash hours
data or full futures sessions.
I am using the standard original setting with 9, 26, 52 and the total futures session data.
Often the Ichimoku system is reduced to the "cloud" only - in fact all lines are important to get the big picture.
In this thread here I did not a indepth discussion on a given chart - might be a homework to do this for a
special situation like this one here to get the details of that amazing indicator.
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A short update on the last daily chart:
We are on the yellow up-path described above - the one I did not prefer. Price made several
attempts to fall underneath red Kumo but closed every day above then.
Right now we have still the chance that price may fall quickly through the red Kumo seeking lower
levels. This is shown in the chart with the red arrow. If that is not made in the next three days
the support of the Kumo is getting stronger and we need to wait 3 to 4 weeks for lower price possibility.
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