4-hour timeframe
Overview:
At the moment we see that a new buy signal targeted to 1,3106 has formed. This signal has managed to get weaker as well, and has not been confirmed. The price has fixated below the Kijun-Sen though there are reasons for the signal to strengthen soon and fixate above the Kijun-Sen. Thus, when it happens (if the correction will last), it will be possible to renew buying with the first aim of the lower Ishimoku cloud limit. It should also be mentioned, that the signal is still not confirmed as the Chinkou Span has not fixed above the price curve and the price has not fixed above the Ishimoku cloud. The Chinkou Span is placed below the price curve which denotes the downfalling tendency. The Bollinger Bands show the sideways movement as the lines are diverging and directed to the sides, although this is not likely to indicate the flat, and the increasing motion is probable to start. The MACD is descending which shows the current decline.
Trading recommendations:
Currently, it is recommended to wait for the recoil of the price upwards, which will be signaled by the upward pull back of the MACD. In this case it will be possible to open long positions with the first target – the lower border of the Ishimoku cloud.
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.