I have a system, It is old but in new style and it is none other than ichimoku. In that system all we need is upkumo and downkumo and don’t use tenken sen, kijun se and chikou span. Apply it on a one hour chart. Then use 14, 21, 100 200 SMA . You all set. It will look like this
Now about taking positions. It is as simple as 1-2-3. Just wait for a cross over and take position when a fresh candle forms outside the cloud. When you take position, make sure that the candle formed outside and doesn’t touch the cloud. Take buy position when candle forms above the chart and fix a s/l below the cloud. Fix target OF 100 PIPS. You’ll surely get 5 crossovers a month and 4 out 5 will be in profit. Try to avoid month end crossovers. You can also use m30 if you are a day trader. You will get daily cross overs. But reduce your target accordingly. That’s all !
Here in the chart above you can see I took profit at 100 pips, because there is a chance of bounce back after 100 pips. So don’t be greedy or you can fix a s/l 30 pips away the market price. So that you can collect all that pips to your basket ! It’s just an example. You check your chart for more examples. Happy trading !!!
To enter a trade:
I have to wait for the cloud crossover and then for the price open and close above/below the cloud
or just the price open and close above/below the cloud is enough?
That’s right bro, you have to wait for the fresh candle which forms above/below the cloud to take position. fix stop loss below the cloud if you are in buy position and vise versa
(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
We are only using up kumo and down kumo. We use SMA bcoz, it uses world wide, so some times it may act as support or resistance. In a way it will help as in trading
Up kumo is showing uptrend and down kumo is showing down trend. It forms with the chart history till date. Got it? Have any more doubts? Feel free to ask me.
Very simple and mechanical system you got here. I have a question, though I totally understand entering a trade when price closes above/below the cloud, but what are the functions of the SMAs? In the first post you mentioned ‘crossovers’ but what SMA crossovers are we looking at here? Let me re-read again your post incase I missed something. Thanks
EDIT : I have re-read the thread, so you use the SMAs for Support/Resistance? How do you apply those SMAs in regards to S/R? Do you use it as TP (though you mentioned you set TP at fixed 100 pips) or as a filter? And I couldn’t find what SMA you are referring to when you said Crossovers. Sorry for the many questions, I believe it will be beneficial for other new traders who are very interested in your system. I do think however your system is simple and has great potential. How long have you traded/tested it?
Thanks for sharing this ‘new’ development. It is however complicated to we Newbies. For instance what colours do you use for the SMAS? What are the things that crossed over another? Is it 14 SMA or 21 or 100 or 200? Could you please explain further for the benefit of Newbies
Thanks all the same
FIRSTY