Potential trend flip on the Moderna Chart for the first time since May 2024. I use a default doubled cloud on the daily timeframe 18/52/104/26. I find this to be superior to the default cloud on both backtesting and forward testing over the past decade on any chart.
Ideal bullish entry conditions occur on the cloud system when all four conditions are met:
Price above cloud
Bullish cloud
Bullish tenkan and kijun cross (TK)
Lagging span above price and above cloud (LS)
The doubled cloud settings are meant to decrease noise and increase signal, because of this I ignore the lagging span entirely and have never used the lagging span for entry criteria. We are approaching sufficient entry conditions with a bullish kumo breakout (price above cloud) and kumo twist (bullish cloud).
The target zone is merely based on the 50% retracement of high to low of the multi-month down trend, see: Dow Theory. Additional upside can be seen if the trend remains intact. Trailing stop losses via Williams Fractals and keeping an eye out for bearish divergences are both key to position management for this strategy.
Stop loss considerations for this idea is a combination of price below cloud and new lower lows. There is not a strongly defined level here at the moment but 31, 27 and 25 would all be considerations for reduction or closing of the position.
Interesting that this TA setup occurs in the setting of heavy anti-vaccine rhetoric from the current administration as well as severe weakness in the healthcare sector generally.
Ideal bullish entry conditions occur on the cloud system when all four conditions are met:
Price above cloud
Bullish cloud
Bullish tenkan and kijun cross (TK)
Lagging span above price and above cloud (LS)
The doubled cloud settings are meant to decrease noise and increase signal, because of this I ignore the lagging span entirely and have never used the lagging span for entry criteria. We are approaching sufficient entry conditions with a bullish kumo breakout (price above cloud) and kumo twist (bullish cloud).
The target zone is merely based on the 50% retracement of high to low of the multi-month down trend, see: Dow Theory. Additional upside can be seen if the trend remains intact. Trailing stop losses via Williams Fractals and keeping an eye out for bearish divergences are both key to position management for this strategy.
Stop loss considerations for this idea is a combination of price below cloud and new lower lows. There is not a strongly defined level here at the moment but 31, 27 and 25 would all be considerations for reduction or closing of the position.
Interesting that this TA setup occurs in the setting of heavy anti-vaccine rhetoric from the current administration as well as severe weakness in the healthcare sector generally.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.