649bruno

Ichimoku Cloud, Pattern Swing, Alligator View: IWM Follow-Up 1

Short
AMEX:IWM   iShares Russell 2000 ETF
3
Over the weekend I tried to explain why I was negative on IWM. The above chart is for 15 minute intervals, and is for Monday, 04-04-2016. I highlighted two elements of the Ichimoku Cloud, the thick red conversion line, and the thick black Ki jun-Sen baseline. The negatives are many. I explained that on Friday the price action of IWM was selling through the conversion line. This is negative. As time progresses, the cloud is moving lower. This is negative. Please observe the long red candle just before 10 AM. This sold through the conversion and base lines. A double negative. Just before 11 AM there was a down fractal (red down arrow). During this time period, at approximately 10:30 AM, the alligator pattern went from mostly closed to open. You can detect this from the light green, red, and black lines that are close together. These are the alligator's jaws, lips, and teeth. As the alligator "wakes up", he will feed, and a new trend is likely. At the same time the Ki jun-Sen and conversion lines headed lower, into the cloud. This is a big negative. The three indicators I use also went negative. The RSI sold down (top indicator), The vortex went red over green (negative) (middle indicator), and the lower indicator is the "Awesome Indicator", which went extremely negative. By the end of the day all combinations of indicators that I saw over the weekend came to pass, and all remain negative. I hope this has helped you to see what the structure tells you. One thing not visible: if you look left on a daily 9 month chart you will see the Ichimoku Cloud much higher, when IWM was around $129.10. There is a huge amount of overhead supply (resistance). I present these ideas to help your trading. My best to you, ladies and gents. Don.

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