Potential signals to watch out for.
Upside:
Downside:
Upside:
- Most candlesticks that broke above the cloud have higher highs and higher lows
- Tenkan-sen and Kijun-sen crosses upwards
- Chikou-span i.e. the lagging line is about to cross above the cloud
- No weekly bearish bars above the cloud
Downside:
- Last week's candle is a potential reversal signal, it's also an inside bar, therefore a breakout is required for confirmation
- Price is approaching a monthly resistance, be mindful a sharp reversal may occur.
- The Lagging line may be rejected by the top of the cloud