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| DJI 30 - End of Week Chart - 16 March 2012 |
Our previous Study with the 'Cloud' (post here) proclaimed that the 'Bulls have it all'. And yes, they did decisively surpass, last year's high, as if to emphasis the point.
Please read previous study, for ALL the signals/indications that the Cloud has thrown up recently. As you would have read in our first Ichimoku post's reading material, Ichimoku is all about using the messages from multiple signals, not just the latest.
This weekend we focus on one aspect of the Cloud - the 'FLAT Kumo'. As you can see - marked 'G' in the chart, the Senkou Span B (grey line) appears flat from now on..
We know that the SENKOU SPAN B is the (HIGHEST HIGH + LOWEST LOW)/2 for the past 52 periods time-shifted forwards (into the future) 26 periods. Look at 'F', a trend less time, which fits the above, as the formula would produce a flat line just about now.
The Flat Span implies Equilibrium and because Price loves to get back to equilibrium, the flat senkou span B becomes strong attractor of the price-line towards it.
One can see the Flat Senkou Span B, doing exactly this, during Dec'11.
Could be early times for that to happen, but one likes to be in the know. Why else study?
