The week has not finished as yet, but what is developing is interesting.
When price trends , its tend to not move too far away from from Equilibrium. With Ichimoku this is represented by the Tenkan Sen and Kijun Sen lines.
In a steady uptrend or downtrend price moves within a distance of these lines with a given regularity. This can be seen in the chart from Jan 21 to April 22.
When volatility increases and price moves to " far away " , then a reversion to the mean (equilibrium) will take place. This has occurred recently ( Early May 2022) .
The current week is too far away from equilibrium price. The candlestick may become a Shooting Star .
The Weekly Tenkan Sen is the obvious target for a retracement at 1.31 ( a significant weekly Support/Resistance Zone) .
The KUMO is extremely well established and likely we will see price break 1.37 following an anticipated retracement.
Disclaimer: The views expressed are solely those of the author and do not represent the official position of Followme. Followme does not take responsibility for the accuracy, completeness, or reliability of the information provided and is not liable for any actions taken based on the content, unless explicitly stated in writing.
Leave Your Message Now