XLMUSD is setting up for a strong follow-through breakout following a healthy pullback. The hourly chart shows a bullish double bottom candlestick pattern during accumulation phase. The Ichimoku cloud system shows price broke through the white Kijun-Sen (along with a T/K cross) and has now re-tested the line without a close below. The cloud top will act as resistance, but the bullish cloud twist and Chikou-Span line being supported by the cloud suggests a breakout is eminent. Likely to see higher prices in the next 6-36 hours.
コメント
⋅
We are experiencing continued consolidation with some failed signals to both sides. A move in either direction on high volume will indicate which direction is next.
Higher time frames finally looking bullish again. Support showed up in a likely area (old resistance) and pressure is once again to the buy side. A 2-headed H&S pattern can be seen on the orange lagging Chikou Span, and we are challenging the cloud bottom on this time frame with higher lows. If you're not already in, a close above 0.72 or a re-test of the H&S neckline around 0.59 would both work as entries.
Erik1979
⋅
Doesn‘t it build an dopple bottom at the moment?
Red_Ben
⋅
@Erik1979, Yes, I think you're correct. We are testing the "neckline" of the double bottom to ensure buyers will continue to show up. beautiful buy opportunity here.
jamikr
⋅
this is quite a chart! :) when is it saying the breakout would ocur when it hits the point on the right w/ the small cloud?
Red_Ben
⋅
@jamikr, Thank you for the kind words. A full kumo breakout requires a bullish cloud twist (recently occurred), price closing above the cloud top (currently ~0.775) as well as the lagging orange Chikou Span breaking out of the cloud (likely to occur by ~0.80-0.82 depending on timing). The Chikou Span (orange) prints candle closes 26 periods in the past, so an hourly close above 0.82 in the next 12 hours would certainly send the line and price through the cloud and be a strong signal that price will continue higher. Since the Ichimoku system is a forward-looking overlay, we can see that the cloud top falls lower as more time passes in the near-term, so the breakout point could occur at a lower price if further consolidation in this range continues. A close below the cloud, especially on high volume would be a sign that the setup is failing and the instrument needs further rest before returning to the upward trend. The hourly stochastics along with consolidation on the 15min chart can be used to time a pullback entry after the breakout if you prefer not to buy the breakout or miss it overnight. good luck!
Higher time frames finally looking bullish again. Support showed up in a likely area (old resistance) and pressure is once again to the buy side. A 2-headed H&S pattern can be seen on the orange lagging Chikou Span, and we are challenging the cloud bottom on this time frame with higher lows. If you're not already in, a close above 0.72 or a re-test of the H&S neckline around 0.59 would both work as entries.