Wzuppp!
This is not a trading forecast, but an attempt to figure out Cluster Algorithm II indicator.
As I understand it's a clone of the thing from these guys.
And even though it's supposed to be an intraday tool, I used a 1W.
Usually, such indicators reach a high or low, after which they change their colour and direction.
But here we can see two episodes that break this obvious principle.
1. When the first big correction of 2021 occurred, the curve started falling,
but did not change colour and stayed green when falling.
As a result another rally occurred, but a divergence was formed on indicator.
2. Now we have a rally with the red curve (!) coming up to the high zone.
So.
Who can explain what it means?
If you know any traders who understand this indicator,
tell them the answer to this question.
Thank you.
This is not a trading forecast, but an attempt to figure out Cluster Algorithm II indicator.
As I understand it's a clone of the thing from these guys.
And even though it's supposed to be an intraday tool, I used a 1W.
Usually, such indicators reach a high or low, after which they change their colour and direction.
But here we can see two episodes that break this obvious principle.
1. When the first big correction of 2021 occurred, the curve started falling,
but did not change colour and stayed green when falling.
As a result another rally occurred, but a divergence was formed on indicator.
2. Now we have a rally with the red curve (!) coming up to the high zone.
So.
Who can explain what it means?
If you know any traders who understand this indicator,
tell them the answer to this question.
Thank you.
Note
On 2W chart, all this two-month upmovement
has not formed a new green cube in any way.
The cluster algorithm should reach the oversold zone at 30.
Right now it is still 40.
Note
The candle broke through the Tenkan-Sen.
This means that conversation line does not act as support.
Note
Sad. It would have corrected normally from 25K to 20K, and then you could really consider going long. And now they are eating like crazy up to 28-30 thousand and what? It would have been a normal downward move. And now with the plummeting candles will be hard drop from there.Note
I'll put it here so I don't forget it.
This is a curious retest of the 80 area,
if there is a rejection of area,
you can see consequences.
Note
Many on market believe in the power of price.
It is natural for a person, if tomorrow is more expensive than today,
then the day after tomorrow is more expensive than tomorrow.
But I can't play with such things.
Note
An important factor in the success of short positions now will be the very broad consensus that the rise will continue.Note
Note
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.