It is useful for 1-3 month swing trading (if open market is 5days in a week).
( ) 20 days & 60 days were used to make cloud region( green, red cloud )
- 20 days, 60days were translated to 20days future from now ( =SMA Leading span 1,2 )
- if 20days > 60days => green
- if 20days < 60days => red
- if close price < cloud => The bigger red cloud means stronger resistance
- if close price > cloud = > The bigger green cloud means stronger support
* Leading Span (Most important)
Instead of using lagging span, I used leading span.
We can predict 20 days sma's direction with this leading span & current price(close price)
- if close price makes Dead Cross over leading span & close price < 20days
=> 20days heading down soon
- if close price makes Golden Cross over leading span & close > 20days
=> 20days heading up soon
Buy IF 20days heading up soon & close price >= green cloud ( even better if 20days >= 60days )
OR IF 20days heading up soon & close price < red cloud & cloud is small ( low success rate )