Is It Really The Start of Something New? July 20, 2011

[Billy]

-1- We always hear from technical analyst that previous support now becomes resistance. Why does cluster analysis ignore this "concept"?
-2- Does Ichimoku supplement S/R analysis in any way then?
-3- Finally, IWM is trading just below the Senkou Span A ( the bottom of the 60 minutes bearish cloud) which should act as resistance. For months now, you have no longer presented Ichimoku short term analysis. Is this by design because it no longer part of your investment process? I for one use them for risk and E(r) analysis and would be quite interested from time to time to get your view on this as far as IWM is concerned.

Pierre Brodeur

Bonjour Pierre,

-1- Cluster and pivot analysis is not different from other technical analysis. Previous support becomes resistance and inversely. Only interpretation is easier with multi-pivots, since for each timeframe you can make the distinction between equilibrium S/R at pivot levels and intermediate consolidations in a trend at the various S123 and R123’s.

-2- Ichimoku analysis is better for discretionary trading and for making real-time decisions intraday. It can complement S/R analysis but is hard to quantify. We know the optimal timeframe is the 60 minute with Ichimoku, while the multi-pivots weighings start on the daily timeframe, 6.5 times longer.

-3- I still do my ichimoku daily routine analysis and know very well what you are talking about with the Senkou Span A. But remember that this forum is for discussing the robot signals and Ichimoku is no part of them, neither as Fibonacci or MIDAS for example.

Knowing where the Ichimoku clouds and spans are is certainly impacting my commentary. I will try to make some Ichimoku updates in the VIT main forum when I find the time. It must encompass all timeframes and compare all main indices to be useful. While it takes me only 5 minutes in my daily routine, posting clearly and concisely about it to a mostly novice public would probably require me 2 hours of work. Also such posts usually spur tons of questions and I must sacrifice more of my rare and precious leisure time.
Again, Ichimoku is mostly helpful for discretionary trading decisions and therefore cumbersome for robot traders.
Billy

[Pierre Brodeur]

. Also such posts usually spur tons of questions and I must sacrifice more of my rare and precious leisure time.

... and I thought that with the robots, you NOW had plenty more of leisure time [lol]

Thanks for the answer

A bientot

Pierre Brodeur