Ichimoku Kinko Hyo

4xStar · #1 (**permalink**) 06-16-2008, 10:21 AM

Irrashaimashe!
Hajimemashte!

No you don't have to speak Japanese to be in here .. I am just showing off since I spent 8 months in Japan .. where I also tried in vain to learn the world's most difficult language

But I loved the country & gained a huge respect for their sense of order and organization. So when I learned the Japanese have come up with a predictive trading pattern called Ichimoku Kinko Hyo ("Equilibrium chart at a glance") I wanted to learn all about it.

It is not simple .. but since it tends to be predictive of future price movement, it should be worth the time & effort to learn. So I'm opening this thread for those who would like to study & discuss this pattern. If there are any people already experienced with it, please feel free to post here. The rest of us will listen & ask questions.

I found this page where you can get an intro to the Ichimoku:
www dot kumotrader dot com/ichimoku_wiki

There is an ichimoku indicator for MT4, you can google it or if anyone has a problem finding it, I can attach it in here.

Arrigato gozaimas!

daedalus · #2 (**permalink**) 06-16-2008, 03:04 PM

Subb'ed for interest! Can't wait to see what you have to teach.

dannybly · #3 (**permalink**) 06-16-2008, 03:35 PM

onegaishimasu 4xStar sensei!

I was a teacher in Japan for a year right out of college, what a blast, love that country!

Back to forex though - I think Ichimoku is a useful technical indicator, especially on longer term time frames. One of the strongest signals is when you get Tenkan/Kijun crossover above (bullish) or below (bearish) the Kumo (cloud) - I made a reference to it in my post earier today:

USD/JPY Levels

gambatte kudasai!

4xStar · #4 (**permalink**) 06-18-2008, 08:30 AM

Quote:

Originally Posted by dannybly

onegaishimasu 4xStar sensei!

I was a teacher in Japan for a year right out of college, what a blast, love that country!

Back to forex though - I think Ichimoku is a useful technical indicator, especially on longer term time frames. One of the strongest signals is when you get Tenkan/Kijun crossover above (bullish) or below (bearish) the Kumo (cloud) - I made a reference to it in my post earier today:

USD/JPY Levels

gambatte kudasai!

doomo arrigato, but I am not the sensei for this, just a student myself. I've invited Andrew to join us as he knows quite a bit about these patterns. We have been following the G-Y a lot lately & siince the bullish Tenkan-Kijun cross on May 22 above the Kumo we've seen some nice upward movement in that pair as well.

I am also just starting to learn this pattern, so hopefully sensei Andrew-san will stop by to enlighten us all soon

HAUGHT007 · #5 (**permalink**) 06-18-2008, 09:03 AM

Hey, saw you mentioned this in RRRAM's GBP/JPY Equity thread. Looked at it a little bit and it looks crazy! I'm sooo in on learning this thing! Also looked a little bit at the Gartley patterns you mentioned. What I read was somewhat vague on how to implement it. Mainly just how it sets up in general.
Should be good times! Can't wait for Andrew to shed some light.

toukika · #6 (**permalink**) 06-18-2008, 06:19 PM

heh? nihongo ga dekiru hito wa kono forum wo tsukatte iru n desu ka?
hajimemashi te!
ma- tonikaku, oshiete kurete arigatou gozaimasu 4xstar sensei!
Watashi no iu koto ga wakaru kamo shiremasen.
------

Hehe.

Thank you for your information. I've seen some about this before. I'm pretty new to FXtrading. Only a few months of study. And only a few days actually started trading.

I would love to hear anyone else's info on this and their success with ichimoku kumo.

yoroshiku onegaishimasu

4xStar · #7 (**permalink**) 06-19-2008, 04:39 PM

toukika, your japanese is way ahead of mine

Need to find dictionary to look up
wo tsukatte and iu koto ga for starters...

Anyway Japanese fluency is not necessary to understand Ichimoku, although you will probably pick up a few words!

Well, I shall begin with a brief into to Ichimoku Kinko Hyo ... it is actually meant to be a simple & quickly understood chart:

"Ichimoku Kinko Hyo is a purpose-built trend trading charting system that has been successfully used in nearly every tradeable market. It is unique in many ways, but its primary strength is its use of multiple data points to give the trader a deeper, more comprehensive view into price action. This deeper view, and the fact that Ichimoku is a very visual system, enables the trader to quickly discern and filter "at a glance" the low-probability trading setups from those of higher probability. "

What attracted me to it is the fact that it is somewhat predictive and very few indicators are predictive .. most are lagging. The IKH projects forward in time to future probabilities.

OK .. there are 5 components:

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 latter two delineate the top & bottomside of the infamous "kumo" or clouds that appear on the chart.

For starters, add the ichimoku indicator to a daily chart. The indicator is built into MT4 (I thought it had to be installed as a custom, but it is right there under oscillators).
Now what I did was adjust the colors .. I made the lines thicker and changed the colors to more vibrant ones so I could easily distinguish the lines.

That is the first task .. add the indicator (make it the ONLY indicator on your chart) and adjust the colors to suit.

Next we'll get into what it all means.... if anyone is already good at reading these charts, feel free to jump in!

toukika · #8 (**permalink**) 06-20-2008, 03:32 AM

Thanks for the info. Like I've said I've heard about it, and read something here or there, but I plan to look deeply into this and this is a good start for me.

As for the Japanese:
I grew up speaking it.
However, it's still nowhere near as good as my English. I sometimes need a dictionary.

Toukika means speculator.

4xStar · #9 (**permalink**) 06-20-2008, 09:00 AM

Quote:

Originally Posted by toukika

As for the Japanese:
I grew up speaking it.

After 8 months living there, and I speak 3 other languages, I came to the conclusion that is the ONLY way to learn japanese

It is definitely a challenge ... can you read the kanji??

Andrew says he will be posting here over the weekend so we should start getting some good information .. in the meantime, get those IKH charts up & colored the way you like them .. take a look at the GBP/JPY for starters...
Look what happened since the Tenkan-Kijun bullish cross above the Kumo (cloud) on May 23 ... nice spot to go long, des ka?