If we look at AAPL a different way, again - looking at only the technicals - we see the 4 rules of Ichimoku are telling us that this stock is currently: Bullish.
That being said, there are some red flags popping up that I have also labeled. We could nit pick a couple more, but I ran out of room and wanted to keep this as simple as possible.
4 Rules:
1) Price in relation to Cloud: Price is Above Cloud = Bullish
2) Tenkan-sen in relation to Kijun-sen: Tenkan-sen above Kijun-sen = Bullish
3) Relationship of Chikou to Price: Chikou is Well Above Price = Bullish
4) Senkou A in relation to Senkou B: Senkou A is over Senkou B = Bullish
Warnings:
1) Price has crossed paths with Tenkan-sen - Signifying either a Major Pullback, or a Trend Reversal: The price has crossed over the Tenkan-sen line - this is a major red flag! We look closer, and find the price never surpassed down to, or through the Cloud. So this means this is a Major Pullback, but not a Trend Reversal.
Looking to the futhure, we see the price that has crossed this line, has also crossed below Senkou B - Signifying an entry point we want to stay AWAY from. So we draw a line at this spot, count the number of bars that consolidated at this point, and we will set an alert here.
2) The Cloud itself is thinning. A thinning cloud leads to a higher probability of a Trend Reversal. As we just had price hitting Tenkan-sen, we will start watching Candlestick patterns for signs of Reversals.
In one of my other posts, we already identified the 2 Candlestick pattern from Today and Yesterday, as a Bearish Harami. This is significant, and normally a sign of a reversal. We must look for 1 more Candlestick to confirm!
Thanks!
That being said, there are some red flags popping up that I have also labeled. We could nit pick a couple more, but I ran out of room and wanted to keep this as simple as possible.
4 Rules:
1) Price in relation to Cloud: Price is Above Cloud = Bullish
2) Tenkan-sen in relation to Kijun-sen: Tenkan-sen above Kijun-sen = Bullish
3) Relationship of Chikou to Price: Chikou is Well Above Price = Bullish
4) Senkou A in relation to Senkou B: Senkou A is over Senkou B = Bullish
Warnings:
1) Price has crossed paths with Tenkan-sen - Signifying either a Major Pullback, or a Trend Reversal: The price has crossed over the Tenkan-sen line - this is a major red flag! We look closer, and find the price never surpassed down to, or through the Cloud. So this means this is a Major Pullback, but not a Trend Reversal.
Looking to the futhure, we see the price that has crossed this line, has also crossed below Senkou B - Signifying an entry point we want to stay AWAY from. So we draw a line at this spot, count the number of bars that consolidated at this point, and we will set an alert here.
2) The Cloud itself is thinning. A thinning cloud leads to a higher probability of a Trend Reversal. As we just had price hitting Tenkan-sen, we will start watching Candlestick patterns for signs of Reversals.
In one of my other posts, we already identified the 2 Candlestick pattern from Today and Yesterday, as a Bearish Harami. This is significant, and normally a sign of a reversal. We must look for 1 more Candlestick to confirm!
Thanks!