At first, Ichimoku looks like a mass of jumbled lines and consequently appears to be very confusing. I guess this is why more people don’t use it.
However, if you take the time to study it closely, you will find one of the best [and easiest to read] indicators ever devised.
BUT you MUST consider it AS A WHOLE!!
OK - look for the various signals, but then consider them in the context of the other information which Ichimoku is giving - including higher timeframes.
HTH,
GT3RS
PS - one of the more powerful signals is price crossing the Kijun Sen…
Use the clouds for your support/resistance ranges as well.
Here’s a few of my most common settings layered on top of each other.
Notice how price action is following 5,10,20 settings down the kumo.
“Using Chikou span, we draw immediate support and resistance lines.
We find that the resistance is now at 1.4669. While support can only be found at 1.4391.”
I don’t see this. Or I don’t understand where this comes from. Can you explain this a little more? Thanks a lot.
Please find my way to trade the EUR/USD on the Ninjatrader platform using the traditional Ichimoku rules, but with the help of Renko bars set @ 3 ticks.
I also changed the last setting from 52 to 65 as mentioned by unhommefou in this thread.
Please feel free to leave your comments after studing the attached chart.
I’m really confused about the 3rd condition that needs to be satisfied. The Chikou Span lags behind the current day so how can you determine if it’s below or above price at the point where it breaks above the cloud? Also, in the first picture in this thread there appears to be a fourth line…Not sure what that is.
Let me tell you that i took the long position @ 10:00 AM my locale time in Panama (central-America) where i live for the moment. At that time i could read the Chikou Span being above the price @ 09:40 AM. Please don’t forget i’m using Renko bars set @ 3 ticks, so i’m not affected by time, only PA.
Every time price move 3 pips up or down, a new bar is plotted.
I think the 4th line you mention is the horizontal light blue one…
This is only the price line.
Actually that is as you said, just current price shifted back. It’s useful for S&R but can be mileading, if you only center on that.
The cloud or kumo is actually the heart and the most important part of ichi. You have to look at the whole picture. All of the signals together. I really don’t think one part trumps the other.
For those of you trading 4hr, Daily, or Weekly charts, where do you generally put your SL?
Behind the cloud, behind the Ks, behind the candle wick of the candle you are trading?
I don’t use the chikou span for anything but support and resistance. Focus on price and if it’s entering or exiting a cloud and tenkan/kijun’s relationship to the previous close. I want to see tenkan/kijun fully supporting price action. I use Full Stochastics for additional confirmation.
Any pairs you are looking at at the moment?
I have EU and AU with nice bounces form the Ks but I’m loathe to trade these now after the DUbai news last week - maybe PA needs to settle first?
Plus EU can’t seem to break 1.5 successfully.
LOL, I was in both of those last nigh. Both went to about +60 pips, the backed up and took me out at BE. I’ll be looking at them at the start of the next daily candle to see if it was just sunday thinness.
The Ks is the Kijunsen (average of the last 26 periods).
If price stays above the Ks, it means the PA is still in a strong trend and it is acting as support.
When do you move to breakeven?
I normally do this at around 1.5x the daily ATR for the pair…
Pairs I am currently looking at that have just has Ts/Ks crosses are
EG: LONG
GBPCHF: SHORT
Both need to exit the cloud for a possible strong signal but you could take them early with confirmation from other factors.
USDCAD may exit the kumo soon (kumo sentiment is a bit thin at present).
NU has potential but am waiting for a cross.
GJ needs to clear last support.
EU I am staying away from until it clears the strong resistance area of 1.5+
It depends on a few things and isn’t written in any hard rule. Usually I wait for price to pass a pivot point and be above clouds on shorter time frames.
Sometimes though, when I think the trade is iffy I’ll just put it to BE for piece of mind. I’d rather be out at BE than have it reverse and hit my sl
