Hey everyone just wanted to ask anyone using ichimoku system here what other indicators do you use with it and standard settings i know they are for stock markets but is it ok for forex. Im a new trader so go easy on me. Thank you in advance
I use Ichimoku cloud for forex trend trading, together with EMA 60, MACD 3,10,16, and PSAR 0.09 - 0.5.
Daily chart EMA 60 confirms the trend, 4 hr chart, as confirmation of the same cloud set up, and 1 hr, providing same cloud set up, for trading orders. Cloud set up includes the short red line to be above the slow blue on buying above, and vice versa when selling below.
Use MACD bars to confirm trend is strong, use PSAR to confirm that. If it’s not strong (small MACD bars) AVOID that trade and expect a possible retracement when PSAR changes against the trend.
Three chart timing ducks in a row - selling below the cloud and EMA 60, and buying above the cloud and EMA 60 - and it should be a profitable trend trade for at least a couple of hours, whenever you enter.
it’s a strategy that comes up on one or two pairs, 3-4 times a week on average, but you Must follow the strict rules. THREE DUCKS IN A ROW. Currently, despite the volatile and market uncertainty, it is profitable.
Best of luck.
Thank you Steve will try this
Use 8-22-44 for Ichimoku - for 5 day trading week. Two trades today, B CHF/JPY & S USD/CHF. Up 7 pips each, so far…
Nice thank you Steve
It can be a bit complicated at first so don’t worry about it. You will get a hang of it if you keep practising. You should try the Relative strength index with the Ichimoku system.
Ok will try that out too also im guessing standard settings? I know this is for daily time frame but can i trade this at h1 or m30?
the point of Ichimoku and the idea behind its original creation was that it’s something you don’t need to use other indicators with, because it tells the whole story all in one go, at a glance (in fact that’s exactly what the words Ichimoku Kinko Hyo mean, when translated into English)
don’t imagine that confirming signals with other indicators is necessarily going to increase a trading method’s overall profitability
what it may sometimes do is increase the win-rate, but that’s a completely different thing from increasing the overall profitability (because additional indicators also reduce the trading frequency, and in reality that means missing out on some winners as well as some losers)
the issue there isn’t so much that it was designed for stocks rather than forex (though that’s true, exactly as you say) - it’s more to do with the lookback periods for the various indicator components involved in Ichimoku, which are based on the former 6-day trading week (the same’s also true of MACD, though almost nobody who uses it understands that)
the profitable uses of Ichimoku i’ve seen, myself (and they include some institutional use) have all used very different settings from the original ones
there’s (perhaps, just about, arguably) some logic in cutting down the original 9-period setting for Tenkan Sen to 7 periods, because the week-and-a-half it represents as 9 days, now that there’s only a 5-day trading week, is better approximated by 7 periods than by 9 periods, and there’s perhaps some logic (if you’re doing that) in cutting down the other settings on a pro rata basis, but obviously that’s still only applicable to daily charts
Thank you flamingoproxy that did clear up a few things,