Here we have the ingredients for a potential Chikou span/Kumo top bounce.
See notes on chart:
Note the two white arrows on this chart. One at the Chikou/Kumo boundary, the other on the oversold condition.
The green horizontal lines are a boxed area where we see a potential entry price and subsequent stop-loss. The red horizontal line is previous resistance from a Kumo top.
1. Chikou-span at support on previous Kumo.
2. Price at support on previous Kumo.
3. Future Kumo is
4. Oscillator ( (5,3)) currently oversold.
5. Chikou has some room to run
6. Established uptrend (pullback/trend continuation)
7. Trade is in direction of previous T/K cross
In summary, we have an oversold condition developing in an uptrend at support.
Potential entry price 112.422 could be updated later as conditions change
Potential stop-loss 111.483 could be updated later as conditions change
Take profit level #1 114.039 (highest previous close of the potential 'N' wave)
Take profit level #2 114.999 (Just below round number and at the .618 extension of wave)
Risk #1) .939 #2(.939)
Reward #1) 1.618 #2(2.577)
Ratio #1) 1:1.712 #2(2.74)
as always, trade responsibly and this does not constitute investment advice, but my own ideas and how I trade. I am not responsible for your losses nor entitled to your gains.