Reason the Ichimoku cloud becomes resistance
Market moves are determined by the balance of supply and demand among investors. High trading volume is evidence that many investors are participating in the market and that a large amount of capital has been投入 (committed). Areas where market participants commonly focus tend to have naturally higher volume, which leads to more orders clashing. The bands where many positions are built up become resistance zones because eager investors are hoping to exit at the same price.
What signals such resistance zones is the Ichimoku Cloud. If you can anticipate whether the cloud of detestable positions will be breached, you can determine the trend and trade accordingly.
The Ichimoku Cloud is composed of positions of investors who were trapped, and the manipulators with abundant funds who move the market with forceful price action do not reverse until they have caused individual investors to take losses and then picked up manyassets. In other words, individual investors’ losses cause a trend reversal into the Ichimoku Cloud.
Forced price movements are illegal, so if a normal capitalist engaged in such price manipulation they would be arrested for violation of the Securities Act. However, the manipulators who operate with extralegal authority are understood to be a special class that cannot be arrested for such price manipulation. \\(^o^)/
Individual investors, after building positions, do nothing. They cannot. They have no money. They cannot buy up or topple prices or even trigger a manipulative market, so they are inevitably put in a position of being preyed upon.
Thus the Ichimoku Cloud is composed of detestable positions and proceeds toward its end.
The width of the Ichimoku Cloud is proportional to the number of trapped investors. For manipulators to accumulate large volumes in the financial markets, high turnover is necessary. Because forceful price movement quickly increases volume, manipulators cause the price to swing wildly.
The larger the price range they create, the more it is evidence that manipulators are unwinding many positions, and they increase volume to close out positions forcefully.
When the market is in a situation where volume is increased through deliberate round-tripping while prices bounce around, you can consider that manipulators are executing a trapped investment strategy. To buy or sell a large number of positions, high volume is required. In such market conditions, they prepare bait to lure in many small players and trap their opponents.
That is why they create scenes where ducks come bearing greens, by pushing the stock price up or down or making it swing violently to increase volume. Considering these points, you can understand that the more detestable positions there are among investors, the wider the Ichimoku Cloud becomes.
From the supply and demand signals shown by the Ichimoku Cloud, sense the trend reversal. To break through the Ichimoku Cloud means that manipulators have sold or bought a large number of positions, which results in a trend reversal. After breaching the Ichimoku Cloud, the market develops with a new detestable-position cluster and price movements that force losses on such clusters.
By the way, mature investors create ranges by installing thick walls at both the high and low ends to time-adjust the market. They aim to accumulate positions while keeping the average cost down with such tactics. After accumulation finishes, breaking through the Ichimoku Cloud with forceful price action becomes the basic strategy.
An analysis of the market participants’ positions can accurately be back-calculated by analyzing how candles move relative to the Ichimoku Cloud. Basically, when a double top, double bottom, or range break occurs, the likelihood of breaking through the Ichimoku Cloud increases dramatically.
By comparing across minute, hourly, and daily timeframes, you can sense the manipulators’ intentions. If you can read their intentions, you can follow the trend. For trend-following, the basic idea is to read the chartist’s intent from candle movement. To judge support and resistance, you must read candles, interpret manipulators’ intentions, and sense the market mood. \\(^o^)/
Comparing all timeframes—short, medium, and long—you can recognize the golden pattern of a trend’s initial move when the cloud-break succeeds and Ichimoku Cloud turns three favorable signals. It’s reasonable to think manipulators are engaging in rotational trading and level-correcting.
What makes judging difficult is when the price is knocked down immediately after breaching the cloud, or pushed up sharply, or when a trend reversal is denied and the trend continues. In such cases, you should consider that manipulators who want the downtrend to continue forcibly knocked it down. When short-term players close out or manipulators rotate their positions, it’s a theatrical cue (o^-')b
But the true cause is unknown to anyone ∩(´∀｀)∩
If the price continues to fall, the downtrend persists; if it reverses sharply below the cloud, it is evidence that manipulators rotated and trapped short-sellers. By analyzing all timeframes simultaneously, you should be able to sense the precursors to either a rise or a crash.
When you are unsure how prices will move, don’t force a decision: observe, or trade with low leverage as a game-like approach. The reason I recommend low leverage is that there’s less risk of being crushed by the pressure of losses, you can play with a game-like mindset, and you can employ averaging-down methods to stabilize results. The basics of currency trading are to go with the trend. (^。^)y-.。o○
