Hi I would like to know when using the ichimoku system what other tools and indicators should be used to back up any potential set ups IE chart patterns, fibionnaci stochastic etc
i need to know what else to out for instead of using one tool.
cheers people
I do not believe anyonw should use any one tool with out confirming analysis. Manesh Patel has a website devoted to the cloud. All kinds of free videos and articles. Just to be clear, I am not promoting any product or service he or anyone else on the site may be selling, but just that he has a lot of content related to the cloud. You can search him by name on either google or utube and get the directions on how to find the site.
In my opinion every trade is made up of a trend, momentum, cycle (beginning and end of a leg) support and resistance and you need to address them all in order to measure your risk. If you look at the cloud you will see that it addresses those 5 areas. You can also confirm the cloud, by addressing a blank currency chart with either indicators or your eyes depending on your level of experience. Hope that helps
Gp
cheers mate
Ichimoku was designed to incorporate enough elements to allow you to assess market activity and trade just using it on it’s own. I’ve added other MA’s and indicators, but after a while I found the chart to look too messy and a bit visually distracting/tiring and have always ended up removing them.
Saying that, one indicator I’ve added and kept on my chart is one for showing pivot levels for support and resistance, which has been hugely beneficial to understand why the market may stall, or reverse, at a certain point. Adding that to my chart has allowed me to be prepared for the market not to ‘move’ as much (or at all) even when the signal looks fairly strong. It’s also a very minor, extra element on my chart and thus does not interfere with the clean, flowing look of ichimoku.
I also just use Ichimoku with the standard settings, as mentally that would then also relate to other traders using the same indicator and thus potentially allow me to trade ‘in synch’ with others using it as well.
Hope this helps.
Whatever you prefer. Even super-stocha-exponential-bollinger revolutionary system is reasonable to use there. As for newbie any of them work in best case for 50/50