dear friends,
i wish to know real purpose of future Kumo ?
It’s usually just called “Kumo”, not “[I]future[/I] Kumo”: it projects into the future by definition, according to the way it’s constructed.
Its purpose is to display areas which (according to [I]Ichimoku[/I] theory) have increased chances of producing future support and/or resistance, and/or congestion-zones. These can be good areas to [I]avoid[/I] entering trades because of their decreased reliability.
There are many different ways of using the various [I]Ichimoku [/I]indicators to trade, and many different theories of “what’s best”. There’s also a [I][U]lot[/U][/I] of misinformation about it on websites and in forums. Some of the most “authoritative-looking” sites are actually the most misguided.
The key concept is probably to appreciate that the original settings for [I]Ichimoku[/I] were based on and constructed around [U]stock[/U] trading from [U]daily[/U] charts when there were [B]6[/B] trading days per week, and unsurprisingly enough these are settings that have absolutely no relevance to forex trading at all, on any time-frame.
And welcome to the forum.
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thanks,
i donot know but it seems there is so much secrecy around ichimoku system and this attracts me to learn as much as possible about this.
from whatever i know about this i always think it should be possible to know price movement based on kumo,is it true?
kamal
I’ve never noticed that.
What I’ve noticed is exactly what the previous reply mentioned - a lot of misinformation, misuse and wrong settings, and I agree with its poster that some of the most authoritative-looking sources are actually giving out the worst information.
No, it isn’t.
The main purpose of the kumo, as mentioned above, is that it demarcates areas of increased probability of future support, resistance and congestion which can be good areas to avoid entering trades because of their decreased reliability.
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