Ichimoku Trading System

[SanMiguel]

Originally Posted by ThePhoenix

Ok, so I tried to find the op at meetpips under both his usernames and I can't.

I had a question about his method, if anyone knows please let me know.

When he says price above the clouds for long, is he only looking for a break of price through the cloud?

Or, for instance, if price is clearly above and has been for quite some time, does he simply enter in the direction that all the ichi lines and price are already lined up on?

The kumo is the S/R area so if price is above the cloud then the trend is bullish and vice versa. If it's in the cloud...then neutral. You can trade the break but ichi has 5 different signals to contribute to your decision.

[ThePhoenix]

Originally Posted by SanMiguel

The kumo is the S/R area so if price is above the cloud then the trend is bullish and vice versa. If it's in the cloud...then neutral. You can trade the break but ichi has 5 different signals to contribute to your decision.

Yes, I understand all that. My question was does the person who started this thread enter only on the break of a cloud, or just whenevery everything lines up on either side of a cloud.

[SanMiguel]

Originally Posted by ThePhoenix

Yes, I understand all that. My question was does the person who started this thread enter only on the break of a cloud, or just whenevery everything lines up on either side of a cloud.

Ah, ok sorry
I'll let them answer on their specific but my thoughts towards it are:
you have to be careful on breaks of clouds as it depends on the angle of the senkou span - flat spans often indicate more resistance and price tends to have more difficulty moving through them, it can fakeout through them as well. Angled clouds show price passing through easier but also offer more room for retraces back down to the kumo a few periods later so you're entry may not be brilliant.
The absolute strongest cross you can get is:
BUY
break of cloud, Ts/Ks cross above cloud, chikou above price, cloud in the future (26 periods forward) is bullish
SELL
opposite but always with the crosses above/below the kumo.
However, on the longer timeframes it is hard to get all these things at once so you could trade a cloud break. I personally trade bounces off the kumo(price entering into the kumo and bouncing off S/R), Ts/Ks crosses if close to the cloud, and sometimes Ks bounces.
Hope that all made sense and interested to hear other views
I find cloud exits the riskiest trades.

[Rei]

EUR/JPY is forming a strong sell signal. What do you guys think?

[SanMiguel]

Originally Posted by Rei

EUR/JPY is forming a strong sell signal. What do you guys think?

On what, the Daily chart? If you flip the ichi over to a 4hr chart, you will see the chikou running flat and the kumo future running flat indicating a bit more consolidation but in theory, yes.

[Rei]

I meant the daily chart. And yes it does appear to be sideways at the moment.

I was just back reading this thread and it appears Ideasmiths has a good point. If you look at the flat lines formed by Senkou Span B on the daily chart, it forms a channel between 131.81 and 130.9 for EUR/JPY. This is pretty much exactly the range of this pair over the past couple of days (especially clear when you zoom in the time frame).

Since the original rules say a sell is being set up at the open of the next daily candle, you could add a break of the channel at 130.9 support for a good trade?

[lolis]

chikou span below/above price?

I am looking at my chart and see that chikou span is the same as price. It is moving in the same time as the price, and the same amount as the price.

SO - how to understand your buying/selling conditions
To SELL: Condition 2: Chikou Span below the Price Line.

To BUY: Condition 2: Chikou Span above the Price Line.

[SanMiguel]

Originally Posted by lolis

chikou span below/above price?

I am looking at my chart and see that chikou span is the same as price. It is moving in the same time as the price, and the same amount as the price.

SO - how to understand your buying/selling conditions
To SELL: Condition 2: Chikou Span below the Price Line.

To BUY: Condition 2: Chikou Span above the Price Line.

It must be below the price curve not the actual price.
The line is 26 periods back so if it looks like it is running sideways into the price 26 periods ago then it is a sign of consolidation and you should not be buying or selling.
An example of a chinkou sell signal is this (note that this is a weak signal as it occurred above the cloud)

[phil838]

Originally Posted by lolis

chikou span below/above price?

I am looking at my chart and see that chikou span is the same as price. It is moving in the same time as the price, and the same amount as the price.

SO - how to understand your buying/selling conditions
To SELL: Condition 2: Chikou Span below the Price Line.

To BUY: Condition 2: Chikou Span above the Price Line.

The chikou span is the price, it's just projected 26 periods back into the past.

What he means is that the price now (show by the chikou span) is below where the price was 26 periods ago.

[lolis]

ok thanks SanMiguel & phil838