Lesson: Predicting 14% Bitcoin Drop Using Ichimoku Cloud

Ichimoku Cloud showed us to expect strong price action here.

Lesson: set stop-losses below reversal areas and Fibonacci support.

Notes:

Tenkan-sen calculation: (highest high + lowest low)/2 for the last 9 periods.
^ it is time to change our way of thinking
- minor support/resistance

Kijun-sen calculation: (highest high + lowest low)/2 for the past 26 periods.
^ basis, guideline, yardstick
- support/resistance & trailing stop
- indicator of future price

Senkou span A calculation: (Tenkan-sen + kijun-sen)/2 plotted 26 periods ahead.
Senkou span B calculation: (highest high + lowest low)/2 calculated over the past 52 time periods and plotted 26 periods ahead.
^ start off before the others

Kumo (cloud) is the space between senkou span A and B. The cloud edges identify current and potential future support and resistance points.
- height represents volatility
- strong support/resistance
- Bullish when Senkou Span > Senkou Span B and vice versa when markets are bearish.
- Look for Kumo Twists in future clouds, where Senkou Span A and B exchange positions, a signal of potential trend reversals.