Ichimoku Kinko Hyo 101

[myrmigki]

You’re welcome

It’s only disadvantage compared to v2 is that you have to change timeframes in order to view their signals. In v2 four (4) different timeframes (1h, 4h, D, W) were shown on the ssame screen… I guess we can’t have everything in this life in our hands. Still it is a usefull tool.
Thank you everyone for keeping this thread alive.
Happy pipping fellow traders!

[myrmigki]

I’d like to ask everyone who uses Ichimoku, what timeframe do you use for trading with it? I think readings and signals on 5m and 15m are not very accurate…:33:
It’s just my opinion any clearance on that would be very usefull…

[johncapa]

hey traders, I’m testing it, but… have you got any screenshot about live/demo trades using Ichimoku? look interesting, but I’m new with this old strategy

[Ltrader]

@cloudypips

Hi, I’ve installed ichi360 v8 and have looked at it but am a little confused on which TF should we look at entering. The indicator on Daily (AUS/USD) shows a sell entry on TS/KS cross which happened on the 6 March but this cross was above the kumo. I always thought trade entries were supposed to be made under the kumo for sell and above the kumo for buys.

Also H1 and H4 TF’s show different entries, could you please explain for me.

Thanks

[richbugger]

hmm, sounds like an interesting strategy. It is only that I am still working on getting my own strategy up and running but in future I would like to give Ichimoku Kinko Hyo a look and see if I cannot make something out of it.

[shaolinTrader]

thank all for sharing Ichimoku indicator info.

[mizugami7523]

i been using ichimoku for many years. Then again, I’m japanese))))) Home town is Sakata. Birthplace of the candle.

[Ltrader]

i been using ichimoku for many years. Then again, I’m japanese))))) Home town is Sakata. Birthplace of the candle.

Hi there, this thread seems to have stalled, seeing you have been using ichimoku for so long would you like to help us use it?

Many thanks.

[themtharhills]

Hi

I’ve set up the ichi360v8 indicator on MT4. One of the options is to send an email on weak / strong signals. This is great, but I can’t see where I can put in an email address to send the emails to.

I think I might be being thick somehow, any advice welcomed.

Thanks !

[myrmigki]

Hi

I’ve set up the ichi360v8 indicator on MT4. One of the options is to send an email on weak / strong signals. This is great, but I can’t see where I can put in an email address to send the emails to.

I think I might be being thick somehow, any advice welcomed.

Thanks !

I’m not totally sure but I think you can insert your e-mail address in Tools–> Options --> Email
You should check “enable” box too

[themtharhills]

Thanks myr,

Bang on !

[Ltrader]

In the absence of the OP, here is a short I’m eyeing up when price closes below the kumo on the d1 chart. You can see price is already under the kumo on both the weekly & Monthly. I intend to hold this trade for a number of days or weeks as a long term trade riding the down wave. All comments welcome.

[CloudyPips]

In the absence of the OP, here is a short I’m eyeing up when price closes below the kumo on the d1 chart. You can see price is already under the kumo on both the weekly & Monthly. I intend to hold this trade for a number of days or weeks as a long term trade riding the down wave. All comments welcome.

I’d highly recommend using Tenkan-sen and Kijun-sen crosses if you are trend trading on the dailies and up. On these higher time frames, the TS/KS crosses are caused by extreme price fluctuations (it takes a lot to move 26 days/weeks/months averaged, and are usually a signal to go long with a proper entry on the last retracement before the new trend develops. You’ll also catch the beginning of a range which is also highly profitable as price should either drop or rise with much momentem to forum the range boundaries over the next few days and or weeks.

On lower timeframes TS/KS crosses become very unreliable due to intra-day ranging periods etc, however it is an extremely powerful signal where you can expect usually at least a weeks worth of counter-trending price action in regards to the previous environment.

Ichimoku is in itself a trend following system though and you’d do best to avoid trading ranges with this system, seen as frequent higher-time frame ts/ks crosses and the chikou span cruising through price frequently. The TS/KS cross is more powerful above or below the kumo respective to the direction of your trade (above on short being a poor signal), within the cloud being a neutral signal, and below the cloud when you’re looking to short being a strong signal.

Something to think about, added the range part in because the pairs you’re looking at are in clear ranges. With Ichimoku, you should be concerned about grabbing the meat of already or just forming trends (this is typically confirmed with a full body candly close (no parts inside the kumo)) on the upper kumo (going long) and lower kumo (going short).
This is where the successful Ichimoku traders are.

Cheers.

[andri66]

@Ichimoku_Kinko_Hyo

Ok so when i was introduced to day trading no one gave me any good direction as to finding strategies with a high rate of accuracy. So I would like to take the time to give you the skinny on months worth of learning the markets and developing the most accurate indicator strategy I could come up with.

I played with moving averages and oscillators for weeks with little success. Most every broker i asked said not to rely on indicators as entry and exit signals and just go on price action. (Price action is still the best way to trade so understand price action, but as far as indicators go continue reading). The thing is that an indicator cant calculate until a bar closes, so all indicators lag price itself; so indicators tend to give a lot of false signals. Plus they give you a signal when its too late. None really give you a heads up on an upcoming trend or a developing trend so much. Except One, The ICHIMOKU KINKO HYO.

Most look at it and run because it looks complicated. Trust me its not! there is little literature or video info online because most people don’t use it or talk about it. My strategy incorporates four parts. 1) Fundamental analysis <news> 2) Price action <duh> 3-4) Technical Analysis: Ichimoku + Atr Tralling Stop

Ichimoku 101:

This indicator incorporates a few aspects Kijun, Tenkan, Senkou, Kumo, and Chikou.

Tenkan + Kijun= [average high of (x) periods+ average low of (x) periods]/2

Tenkan is usually 7 or 9 periods. Reason= 1.5x days in week of trading between old trade week length vs new trade week length.

Kijun is 22 to 26 periods. Reason= its the number of days in a trade month, new vs old.

So these two tools act as Moving Averages, BUT they take into consideration the full range of the moves and not just a smooth line based on the close of a price. When Tenken crosses Kijun and is above its bullish, if Tenken is below its bearish. Got it? Good!

Senkou is the same calculation but it is 52 to 44 for the number of weeks in a year… BUT it is moved forward 22 to 26 periods to project long term future trend development and projection. the Senkou also creates a cloud with its A span and B span. This is called the Kumo. The rule is as such, trade above and below the clouds if price is below the cloud, the trend is bearish, if its above its bullish, if its in the cloud its neutral. The cloud acts as strong support/resistance. So if it breaks through the cloud its called a kumo breakout and is a strong reversal signal. The thicker the cloud, the stronger the support/resistance.

And finally Chikou, the most simple and yet maybe the most important. It is price moved backwards 22 to 26 periods. When the Chikou crosses where price was 22 to 26 moves ago either above or below, it is a confirmation as to a bullish or bearish trend. Use these all in conjunction to weed out false signals and it makes for a great entry and exit strategy for any kind of trading on any time frame.

ATR Trailing Stop:

I however like to swing trade, and i simply use this indicator as my exit strategy. Like the ichimoku it takes the Average True Range of X amount of periods and makes a stop line based on the range of previous moves, looking to catch strong reversals before its too late.

Not many automated strategies can do this operation so you wont hear about it too much but it is my favorite strategy and I had wished someone had shown me these long ago when i first started. Dont be intimidated by the seemingly complex Ichimoku, that is in truth very simple. Its advantages are that it takes into consideration both Time and Range of previous price action in a way no other indicator can in such an incredibly visual way to show you trend plain as day.

Will be glad if you can continue your thread …as i have not seen your strategy in full bro…Thanks

[Ltrader]

I’d highly recommend using Tenkan-sen and Kijun-sen crosses if you are trend trading on the dailies and up. On these higher time frames, the TS/KS crosses are caused by extreme price fluctuations (it takes a lot to move 26 days/weeks/months averaged, and are usually a signal to go long with a proper entry on the last retracement before the new trend develops. You’ll also catch the beginning of a range which is also highly profitable as price should either drop or rise with much momentem to forum the range boundaries over the next few days and or weeks.

On lower timeframes TS/KS crosses become very unreliable due to intra-day ranging periods etc, however it is an extremely powerful signal where you can expect usually at least a weeks worth of counter-trending price action in regards to the previous environment.

Ichimoku is in itself a trend following system though and you’d do best to avoid trading ranges with this system, seen as frequent higher-time frame ts/ks crosses and the chikou span cruising through price frequently. The TS/KS cross is more powerful above or below the kumo respective to the direction of your trade (above on short being a poor signal), within the cloud being a neutral signal, and below the cloud when you’re looking to short being a strong signal.

Something to think about, added the range part in because the pairs you’re looking at are in clear ranges. With Ichimoku, you should be concerned about grabbing the meat of already or just forming trends (this is typically confirmed with a full body candly close (no parts inside the kumo)) on the upper kumo (going long) and lower kumo (going short).
This is where the successful Ichimoku traders are.

Cheers.

Thanks for your input cloudypips, much appreciated.

I posted in the hope of some feedback from a seasoned user of ichimoku like yourself.

My analogy is and was to go with TS/KS cross as I could see from price action EU looks leggy and was in need of a retrace, as it is now doing. I am looking at the forward kumo and am watching price with TS/KS as these should for now diverge and if price returns to the downside, should soon bring a TS/KS cross albeit above the kumo when price will be below the kumo, giving a weaker signal.

This is my take but I am simply trying to learn how to use IKH as a long term trend following method.

I am also looking at other pairs but this and GU look nearer to a possible downside continuation of the larger down trend which was in play before this retrace IMO.

Look forward to you posting more in the future for us just starting out with IKH.

Thanks again.

ps also watching AU’s retrace below the kumo for possible entry.

[daxter22]

I’d be interested to hear more on the application of Heiken Ashi candles with Ichimoku. I’ve heard and read various things about this combination. I love Ichimoku and find it to be the best approach for me (daily time frames and with a full-time job). Any help or advice greatly appreciated

Daxter

[richbugger]

thanks for your post. I was just doing a visual test on the 1H and 4H charts and I must say, I was amazed at how powerful using the Ichimoku Kinko Hyo indicator (properly) coupled with using the ART Trailing stop indicator is. If only we could somehow develop this into an EA of somehow then we will be able to quantify how great it is. thanks anyways. Btw, why did you stop posting. Hope the other ‘smartie pants’ didn’t scare you away.

[CloudyPips]

Thanks for your input cloudypips, much appreciated.

I posted in the hope of some feedback from a seasoned user of ichimoku like yourself.

My analogy is and was to go with TS/KS cross as I could see from price action EU looks leggy and was in need of a retrace, as it is now doing. I am looking at the forward kumo and am watching price with TS/KS as these should for now diverge and if price returns to the downside, should soon bring a TS/KS cross albeit above the kumo when price will be below the kumo, giving a weaker signal.

This is my take but I am simply trying to learn how to use IKH as a long term trend following method.

I am also looking at other pairs but this and GU look nearer to a possible downside continuation of the larger down trend which was in play before this retrace IMO.

Look forward to you posting more in the future for us just starting out with IKH.

Thanks again.

ps also watching AU’s retrace below the kumo for possible entry.

Actually, I digress…I’m completely abandoning Ichi for Elliot Wave Theory. It’s a great system but it doesn’t suite my personality nor does it provide the insights I crave regarding the markets and price whereas Wave Theory does indeed provide that for me. While I won’t be providing any Ichimoku insights, I will be developing a thread dedicated to the study of EWT and hope that you guys will take a peek sometime.

[Ltrader]

@CloudyPips

Actually, I digress…I’m completely abandoning Ichi for Elliot Wave Theory. It’s a great system but it doesn’t suite my personality nor does it provide the insights I crave regarding the markets and price whereas Wave Theory does indeed provide that for me. While I won’t be providing any Ichimoku insights, I will be developing a thread dedicated to the study of EWT and hope that you guys will take a peek sometime.

Hi Cloudypips, thanks for replying. I also started to study EWT last year, but stopped after the basic wave knowledge, as I found it difficult to work out the cycles and supercycles etc. along with the many different wave patterns. I will ponder over to your thread though.

Now back to ichimoku, I’m no expert (far from it), but this is my take so far with my plan;

Looking at the daily chart we now have the start of a downtrend in that we have a significant lower high but as yet no lower low. looking at ichimoku, we now have a tenkan sen/kijun sen cross to the downside albeit in the kumo signalling a neutral sell. chikou span is now firmly inside previous price action, signalling a possible downturn but again neutral as it is still not below price. But look at the diminishing bullish kumo which is performing a kumo roll into bearish resistance in the future, which is supported by the weekly and monthly charts.

This is further reinforcing my opinion of a downtrend yet to come, I will post my entry if and when I take it when price actually breaks the kumo to the downside.

As always all comments appreciated. I do not wish to take over this thread as I am just a beginner here, if the OP is out there, would they like to take up where they left off to help us with ichimoku?

[rajandran]

This default ichimoku settings are really bad for trading. Its better to avoid rather than using custom ichimoku trade settings. I prefer 3,12,18 for ichimoku parameters.