Bounce inside fat Kumo – NQ 8/29, mid London session. Kumo bottom reflects middle zone of overnight uptrend. LHS is lower high and flip of Momentum Band to red, possible reversal. Incentive to Kumo top, swing & break into. Double bottom at the Kumo bottom is significant, followed by a reversal of the Momentum Band […]
Below is the NQ from early this morning’s options trading, 8/27. The five ovals are spots that are tempting but I pass for various reasons explained below. The rectangle is my eventual entry that goes for about 45 ticks. On this 133 tick chart are a standard Kumo, Momentum Breakout Bands, a 50 period EMA […]
Overnight – LHS temporary bottom but no follow through. Incentive move through the averages & into the kumo – doesn’t hold but does result in a higher low. Incentive swing off the higher-low results in fade & go – ABC. Optimistic entry was at break & hold of averages. Pre Market – Fades back into […]
Consolidation coincident with a narrowing of the DMI cloud. A strong candle breaks & turns the MAs, coincident with expanding DMI cloud & increasing but not overextended ADX. Next candle holds the break. Ideal entry is as close as possible to the top MA without incentive downward. At entry I assume targets in the area […]
There were two nice examples of confluence between these two indicators this morning in NQ. At the LHS price breaks the first five-minute bottom just after breaking the Kumo, which is just after the MACD crossover. In general MACD crossovers are great signals at Kumo breaks. Typically I wait for both price and MACD to […]
Dashed lines are the top and bottom of the first five-minute open range for the NY session. At about 9:45 price moves with incentive to the range top & Kumo top, coincident with extended momentum. The next candle is a nice stall Doji followed by a decent down candle confirmed by a rejection of extended […]
The first five minutes of the NY session is an incentive move down, taking momentum from strong positive to strong negative. Followed by a stall at roughly 1/2 back and an incentive entry at the close of the next candle coincident with a rejection of the momentum indicator (cci) zero line. Expectation is to […]
Three standard entries and several opportunities for insight into the nature of the Kumo. At the LHS is a standard Kumo break that defines the beginning of a trend. I’ve marked levels on the way up that are likely to be significant should price reverse relatively soon after the climb. Notice how the Kumo reflects […]
In my first post I talked about an ichimoku component called the Kumo. Typically the Kumo along with the other components of the system are used to define & trade trends. Price inside the Kumo is considered to be consolidation, above is bullish & below is bearish. In the picture below price is displayed as […]
Hello all, I’m going to be blogging about intraday futures trades & traditional option positions. To start I’ll describe the chart set-up I use for futures & then quickly go over a trade from just after the Chicago open today (7/22). Below is a standard (9,26) Kumo & three nested boxes – A, B&C. The […]