Ichimoku Cloud Trading Strategy

Even though the name implies one cloud, the Ichimoku Cloud is really a set of indicators designed as a stand alone trading system. These indicators can be used to identify support and resistance, determine trend direction and generate trading signals. Ichimoku Kinko Hyo, which is the full name, translates into “one look equilibrium chart”. With one look, chartists can identify the trend and look for potential signals within that trend.

Tenkan-sen (Conversion Line): 
(9-period high + 9-period low)/2)) </b> On a daily chart, this line is the mid point of the 9-day high-low range, which is almost two weeks.

Kijun-sen (Base Line): 
(26-period high + 26-period low)/2)) </b> On a daily chart, this line is the mid point of the 26-day high-low range, which is almost one month.

Senkou Span A (Leading Span A):
(Conversion Line + Base Line)/2)) </b> This is the midpoint between the Conversion Line and the Base Line. The Leading Span A forms one of the two Cloud boundaries. It is referred to as “Leading” because it is plotted 26 periods in the future and forms the faster Cloud boundary.

Senkou Span B (Leading Span B):
(52-period high + 52-period low)/2)) </b> On the daily chart, this line is the mid point of the 52-day high-low range, which is a little less than 3 months. The default calculation setting is 52 periods, but can be adjusted. This value is plotted 26 periods in the future and forms the slower Cloud boundary.

View Strategy Details Here
⇨ https://stockcharts.com/school/doku.php?id=chart_school:trading_strategies:ichimoku_cloud

BLOOM: Forming a potential bullish harmonic pattern

Bloomberry Resorts Corporation

BLOOM is potentially forming a Bullish Bat harmonic pattern. The recent breakdown from 5.5 support also gives it a higher probability of completing the bullish pattern. The Potential Reversal Zone (PRZ) is around 4.35 (4.32~4.6 range) which is near the major support at 4.00.

So far, the 8-month uptrend support line remains intact which may also act as bounce point in the short term. However, a breakdown from this trendline will also further support the completion of the Bullish Bat harmonic pattern.

Trading Plan
- Wait for the Bullish Bat harmonic pattern completion and only take position on a sign of a reversal (candlestick reversal patterns) or bottoming out pattern around the PRZ area. Stop-loss should be a few points below 4.32 or on breakdown from major support.

VITA's uptrend rally warning

Vitarich Corporation

The declining volume on the uptrend rally of VITA is not a good sign.

Rising volume is associated with the big boys buying and selling, so when the market is rising on increasing volume it is assumed the big money, also typically considered the “smart money”, is buying.  When the market is rising while volume is declining the implication is the big money is not the one buying, more likely slowly exiting positions.

*Stochastic at extreme overbought level (95+).
*RSI is also at overbought territory and potentially developing a bearish divergence pattern.

Trading Plan
- Start scaling down position or profit run with a tight trailing-stop.
- Take profit on strong reversal patterns with confirmation.

URC: Bullish Reversal Pattern

Universal Robina Corporation

Bullish Doji Star and Morning Star candlestick pattern on URC, a potential reversal signal (either a new trend may develop or consolidation will follow). Its also a potential sign of a bottom.

*RSI coming off from oversold territory - a bullish signal.
*Immediate resistance at 193.

Trading Plan
- Accumulate near the recent bottom for a position trade.

EW Breakout Play Update

East West Banking Corporation

The measured target from Rounding Bottom breakout has been hit already (22~22.5 range). The previous breakout play was detailed here:
https://psetrends.blogspot.com/2016/07/ew-breakout-play.html

*Immediate support around 19.7 while the major support at 18.5.

Trading Plan
- Scale down position if trading the Rounding Bottom breakout and profit run the rest of the position using trailing stop.
- The 4-year downtrend line breakout play remains intact with projected TP around 24~25. Adjust stop-loss accordingly.