Shanghai Class A Index - Daily Weekly Time@Mode Downtrend

Time@Mode is a powerful, simple, building-block method to describe the trend in any time frame.

Refer to my many other Time@Mode charts here at TradingView.

Looking at the rally in XGY0 (Shanghai Class A Index), you can see in early 2015 that it built 8 weeks at the 3400 level and once it broke out of that range it moved up for 8 weeks. Once it rallied to nearly 4800 and corrected as time expired on the rally (8 weeks), it built a higher, more risky base of 4 weeks from which it advance to 5400 in 4 weeks from the 4-week base.

Time ran out for the rally and XYG0 collapsed under the base at 4400-4500 and returned to the 8-week base at 3400 where it found footing. Along the way, it had built a 6-week distribution zone from which a 6-week decline unfolded into the October time frame. A lower distribution zone was formed at 3200 for 6 weeks, but prices advanced from that level and advanced for 6 weeks where time expired once again at the 3800 level.

6 weeks built in an uptrend at the 3600 level (see purple '6') and prices then advanced and an 8 week accumulation set-up at 3700 (see purple "8") and it seemed set to fly as I drew in the yellow line and a forecast to 4000-4100-4200-4500. But what happened at the 3800 level is the interesting part. Each week it touched 3800 it added a week to the distribution level from before from 3800-4200 but 3800 became the most important and most powerful level that was controlling prices. As prices move away from 3800-3700, it sets up a 10-week decline that has wide downside projection.

The market usually will react at previous important "modes" like the "6-week" 3200 level. The circuit breakers assured we would stop there today, but for now I wanted you to see that XGY0 has been operating very nicely using Time@Mode methodology. You can apply this technique on any time frame in any liquid market.

Note: I don't want to put "SHORT" on this chart because that wouldn't be fair to a market that is locked limit down 7% tonight.

If you have any questions, reply below or come to our chat room - "KEY HIDDEN LEVELS".

Here's to a successful 2016.

Tim

12:47AM EST January 7, 2016

Komentarz:

Notice how the market bounced from the 6-week lower mode labeled in brown from the bottom this past fall. Watch these KEY LEVELS for key support/resistance.

Komentarz:

the 3200 level was support from the 6-week mode from Sept-October

Komentarz:

Looking even closer I see 12-weeks just a little lower than where 10-weeks is labeled. Someday when we can get this automated, we won't miss a signal at all. The level is at 3740 +/- so THAT 3740 is the most important level on the chart and portends a 12-week decline started last week.

Transakcja zamknięta: osiągnięto wyznaczony cel:

Time has run out for this decline. With the US market bottom and the turn in crude oil, I think we can look for a meaningful rally from the Chinese market to follow. Close out all shorts AT THE MARKET.