Ichimoku Trading System

hey dude, you need to give us some examples. Also, you shown us an example of the long position, please show us an example of a short entry because when you said vice versa, vice versa in what way? do you mean when you have resistance for the long position it is support for the short position etc etc?

Thanks

Also what are the setting valus for the ichimoku

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The standard settings for an Ichimoku Kinko Hyo chart are 9,26,52.

The Ichimoku chart is composed of five (5) separate indicator lines. These lines work together to form the complete “Ichimoku picture”. A summary of how each line is calculated is outlined below:

TENKAN SEN (“turning line”)

(HIGHEST HIGH + LOWEST LOW)/2 for the past 9 periods

KIJUN SEN (“standard line”)

(HIGHEST HIGH + LOWEST LOW)/2 for the past 26 periods

CHIKOU SPAN (“lagging line”)

CURRENT CLOSING PRICE time-shifted backwards (into the past) 26 periods

SENKOU SPAN A (“1st leading line”)

(TENKAN SEN + KIJUN SEN)/2 time-shifted forwards (into the future) 26 periods

SENKOU SPAN B (“2nd leading line”)

(HIGHEST HIGH + LOWEST LOW)/2 for the past 52 periods time-shifted forwards (into the future) 26 periods

The senkou span A and B together form the Ichimoku “kumo” or cloud.

Here I explain another trade which I took last week.
The pair is USD/SGD (Singapore Dollar). As I mentioned, this trading system can be used for any currency pair.

Am using the same colors for different indicators which were used in the previoud example.

As you can see:
Condition 1: Tenkan Sen below Kijun Sen.Condition 2: Chikou Span below the Price Line.Condition 3: Current Price below the Cloud.

All 3 condition are fulfilled.

So, we short at the open of next candle at 1.4600.

Using Chikou span, we draw immediate support and resistance lines.
We find that the resistance is now at 1.4669. While support can only be found at 1.4391.

So, our stop loss is now at 1.4669 and take profit level is at 1.4391.

Risk reward ratio is higly in our favor. Risking 69 pips, we are eyeing to gain 209 pips.

I exited 1 lot as soon as 1.4391 was reached. And let the 2nd lot run with a small trailing sto ploss of 40 pips. I usually run a trailing stop loss of 2 X hourly ATR.

~CHEERS!
~Dealing Room on MeetPips.com


If you would be good enough to post a couple more of your analyses… that would be great…

Thanks

dave

I would definitely post couple of more trades to elaborate the trading system.
I’ll be posting them by tomorrow, as am off for a long drive now with my wife.
Meanwhile, you can see a number of trades I’ve entered based on Ichimoku Trading System on meetpips.com; My user name is Dealing Room

~cheers

Are we suppose to log in using your info to view the trades? if so what are the info

If you can’t access Meet Pips, don’t worry. I’ll be explaining the system with a couple of more examples tomorrow.

~cheers

MeetPips.com is in beta testing right now and we are allowing people to access a few at a time. If you submitted your email address, we will send you an invite to register. So, hopefully we’ll get access to ya soon!

I think the system is relatively simple to follow, with a couple more posts the rules will be easy to apply…

He has found a way to communicate his idea effectively and simply…

A couple more examples will clarify anything we need to know. and I am sure that he will answer any questions we may have if we post charts in here with the questions…

sorry guys for posting outside links.
Will post everythng in this forum itself.
At the moment I don’t have access to my trading terminal.
I ll be posting 2 more charts from last week, which I used to enter trades based on ICHIMOKU TRADING SYSTEM.

~CHEERS :slight_smile:

I started last night to look at a number of charts to see where you may have entered a trade…

Using the ADX and Macd as confirmation seems to be very very sound…

I think you have found simplicity in your method and that makes things much less stressful…

At one time I did a lot of trading on the faster charts, however, I have found that the daily chart is more profitable for me…

Thanks so much for sharing…

dave

hello,

is there anyone to continue discussing abt ichimoku.?Im keen to learn this method…lets discuss again…

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Hi thanks for putting this system on here, i like the look of it, just have a few questions.

At what time GMT do you put your trades on? You say you use the daily charts so do you do in at 12 am and only have on average 1 trade a day? Do you not have to wait for days on end for your set up?

Many thanks Lukey 22

Depending on the time frame you are using, there can be several trades per day…

I prefer the longer time frames… ie 4 hour and daily… other people use this system on 5 minute charts.

Thanks for your reply, my only trouble i’m having is the the ‘cloud’ factor of this, they never seem to be the right side up, will check tomoz on the 4 hour chart.

“Trying is the first step towards failure.”

Homer J. Simpson.

I think you will have to persist in studying… get more and more familiar with the different aspects. Ichimoku is a great trend trading system, takes time to master its features

I have actually back tested this system versus USD/JPY, EUR/USD, USD/CAD, USD/CHF, GPD/USD, and USD/SGD (more testing to follow on other pairs), and I have to say this system…actually…works…

Which is surprising, because many of the systems that I find in many message boards tend to fall flat on their faces:eek:

The parameters of my test were from 1970-2008, Daily bars, and the standard Ichimoku cloud settings of 9,26,52.

Also, I tested originally without the Chikou Span Line (by accident). Once I added the Chikou Line, the results of the test actually got worse by a few percentage points.

Now just need to make this into an automated system, and go from there:D

I will post actual snapshots of the backtesting results later.

Any news on this? Any details on the backtests available? How did you do these, just visually scrolling or by program?

Thanks and “sorry” for all my questions

Baby24

I have been very busy as of late, so I kinda accidentally forgot to update everyone with the back tested results of the system.

The backtest did not take into account the Chousu Span line (the lagging 26 day one), but even then, it did better than I had every dreamed this system could do.

It actually beat out other systems that I had been testing as well (including the world famous “Turtle System”, the 350 Bollinger Band System, and even some system by a person on this board named Icycloud.

However, the system works BEST with a longer time frame. Daily did better than Hourly, and Weekly worked the best.

I am just going to show the daily results though.

The platform that I used for the backtest was Ninjatrader.

I purchased Forex data via a third party service (both Intraday an daily).

The results are coming, and sorry about the wait!:frowning: