4-hour timeframe
Overview:
New buy signal has formed, the Bollinger Bands converged and directed sideways, thus indicating the flat at present. In this case, until the lines are not diverging the Ishimoku signals can be ignored. In case the lines start to diverge and directed up, the signal will be confirmed, since the price has already fixated above the Ishimoku cloud. If the Bollinger Bands start to diverge down, it is recommended to wait for the sell signal. In first case, the target for the price movement will be the level of 1.4252, the trading can start after the price fixates above the first resistance level of 1.4102. In the second case – 1.3750. The Chinkou Span is above the price chart confirming the current buy signal. The Bollinger Bands show the sideways movement, the lines are directed sideways and converged. The MACD is ascending, thus indicating the uprising movement within the bounds of the sideways trend.
Trading recommendations:
Currently, it is recommended to wait until the Bollinger Bands start to diverge and after to trade with the targets mentioned above.
In addition to technical image, one should take into account the fundamental data and the time of their release.
The chart annotation:
Ishimoku indicator:
Tenkan-sen — red line
Kijun-Sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line
Bollinger Bands indicator:
3 yellow lines
MACD indicator:
The red line and the histogram with the white bars in the indicators window.