Well, I see a real progress on USD Index side. The Kumo Cloud on Daily Chart is broken first time since early April 2009. Last time it made an attempt to break the Kumo, it was strongly rejected on 8th to 10th July, 2009 period. But this time we’ve one full Daily Candle closing on the right side of Kumo Cloud and that is a significant development IMHO.
However, there few points to keep in mind:
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[li]The Daily Candle is a week candle, this may be because of a Weekend-Profit-Booking mood but this shows a little drop in sentiment which is quite in line with 4H Ichimoku chart as well
[/li][li]Getting Chikou-Span on the right side of Kumo Wall is the next challenge to work on now, this will confirm a really long term Bullish Rally. Until that doesn’t happen, we can not confirm anything right now
[/li][li]4H chart is showing things entering into Over-Shoot zone. The Index may need to fall a little bit to go back to the Equilibirium level before it gets ready for a next Big move
[/li][li]The Bullish Crossover on 4H is strong and very well supported by all the other Ichimoku Elements, however we’ve a weak Crossover on Daily and we’ll have to wait for our next Cross to see whether that can be an Average Strong crossover if not the Full Strong …
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Chikou-Span is essentially nothing but 1 period Simple Moving Average shifted 26 (as default settings, you can change it too if you want) periods back.
One of many Ichimoku Entry Strategies (yupps, its not just Tenkan-Sen / Kijun-Sen Crossover that you should be looking for if trading with Ichimoku) is the Chikou-Span crossover, look at the Red Circles I’ve highliighted on chart. These are areas you would have entered into Short Trades if you were applying this simple trading strategy …
Can you count the Pips for your Profit/Loss from this chart ?
There are few misunderstandings about Ichimoku which are beyond my understanding sometime. One of those is that Ichimoku only works on larger timeframes and when I ask “Why”, no one knows the answer to that. Question is that if Moving Average can work, MACD doesnt mind or RSI works then why not Ichimoku ? What it is really in this system that stops it working on one timeframe but not on other ?
There is no doubt that any system (including Ichimoku) works better on larger timeframe but thats a standard for all systems and not just Ichimoku …
The other thing I’ve had to explain several times since I’ve been advocating Ichimoku use is that it works on any financial product including Forex and Future Indices. Again, I dont understand why people think it might work on one type of market but not on others. Here is an example of how to scalp on Future Indices with Ichimoku. Since I’m based in Australia, scalping FTSE100 index suits me better as the market opens at around 1800 hrs (my local time) and thats the time when I’m back home and can focus on my scalping system.
This is a 15mn chart example, every point has a value of 25GBP and there is a spread of 2 points …
My first TP level for EURGBP was hit earlier at 0.8896. The reason I’ve posted this chart is to share with you guys an example of trading on Kjinu-Sen Breakouts which (more recently) I’ve found much more powerful and almost flawless (if proper rules are followed), here are the rules I follow (for a Short Selling Positions, Long Positions will have the rules reversed):
Price, Tenkan-Sen and Kijun-Sen are all below Kumo Cloud
Chikou-Span bearish
Price crossing Kijun-Sen from upward direction
Bearish (speacially Strong) TK/KS crossover is optional but once happens it will add more power to the trade setup
Keep adding positions at the similar Kijun-Sen Breakouts during the trade
Once this whole setup is in place, you can even consider adding positions at Tenkan-Sen Breakouts
Wait for the pair to reach Extreme Over-Sold status for Profit Booking
Since this board does not allow to post any URL (even if they are posted with an intention to help others and not to have any commercial intentions) I’ve decided to stay away from this forum.
I’m quite active on few other forums and if you do a basic search with my id I’m sure you can follow through.
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