Selling Kumo Top

Selling the Kumo top is the opposite of the previous strategy and everything what was valid on the previous sub chapter is valid here still, with the amendment that the rules are applying for a bearish environment.

A bearish environment appears when the cloud (the kumo) is red, price is trending to the downside and the Chinkou is below both price and the cloud. Basically the two should be above the Chinkou line.
Markets have the tendency to make fake moves all the times and in order to avoid being trapped in such a move, a trader should be patient and wait for the perfect place when should enter the market. In our case here, the perfect place is not the one when price reaching the cloud’s top, but the one when the Chinkou (the lagging span) is reaching that top.

This being a bearish strategy then trading binary options implies buying puts (because under such a strategy, in order for the options to be profitable, it should expire in the money and such a thing is happening only if the price at the expiration date is lower than the striking price).

The recording that comes with this sub chapter shows you what to look for when trying to sell the kumo top and how to avoid the possible traps the majority of traders usually fell for.