Ichimoku used by professional analysts

Beginner Questions
1

I’ve noticed reading market analysis from “the pros” that Ichimoku is used a lot when explaining the current state of a currency paid. Why is that?

Is Ichimoku something taught professionally in the industry, or does it have some other power I don’t know about?

I see it in Reuters articles, Forexlive, fxstreet, etc.

Is Ichimoku like one those indicators you just have to know?

2

Ichimoku used by professional traders.

Firstly, since when is the media also professional traders?

But I have an understanding that at least some professional traders will use the Ichimoku cloud on their charts. Especially when it comes to Japanese related trades because. But unfortunately myself personally, I have no idea because I have only read in a book by a former professional trader that it was used in Japan.

As with everything related to technical indicators, the Ichimoku cloud doesn’t have any special powers, but rather it is a very quick way to see with a glance if the dominant trend is bullish or bearish.

3

Can we list here about the ways to use Ichimoku? Later, I will compose an EAto evaluate the winning rate

I have tried many different methods to use Ichimoku with no good one. It’s good only to detect trend. :roll_eyes:

4

Maybe I’m using the word “pro trader” too loose.

Should I say working professional? These guys watch and analyze charts as their job. That doesn’t mean they’re pro traders, so you’re right. But I would still describe them as pros.

5

The Ichimoku indicator is a Japanese charting technique used in Forex analysis to gauge momentum, volatility, and trend direction. It’s a comprehensive system that combines multiple indicators to provide a detailed analysis of the market. This makes it a valuable tool for traders and analysts to identify potential reversals, support and resistance levels, and trend confirmations.

6

So a bit of everything. Do you use it with any success?

7

Because it’s great tool it provides lots of insight about where price may reverse but definitely should be used as complementary tool not the main one.

8

Tried it tested all variables , when applied to sma 20 and sma 150 delivers best results but is at 70 percent win rate at best
Not for me

9

I might have another look at it. Again, don’t want to jump around too much from what I’m focusing on now. But its gotta have something with all these people raving about it.

1 Like
10

https://ctrader.com/algos/indicators/show/2535/

Big boys use this one I was at the forum when it was released

Make sure to apply sma 150 and 20 :+1:

11

I guess I need to install ctrader to try this out @ausguyforex. Thanks.

1 Like
12

Yes big boys use ctrader

Even you notice raja banks is using ctrader now

13

I don’t know, he has a McClaren yt video. Red flag maybe.

14

He’s ok just not hundred percent so became a broker bit of a bad legacy now but yeah I’ve seen him do some good stuff

15

Ichimoku is widely used because it offers a comprehensive view of market trends, support/resistance, and momentum. It’s a popular tool for professionals due to its ability to capture both short-term and long-term market dynamics. While not mandatory, mastering Ichimoku can enhance your market analysis significantly.

2 Likes
16

Do you use it?

17

Good evening, everyone. I apologize for jumping into this discussion, which started several months ago, but I would like to share some information derived from my studies.

The Ichimoku Kinko Hyo indicator (whose name means “equilibrium chart/table at a glance” - the concept of equilibrium/disequilibrium between price and the lines is closely related to the calculation formulas of the lines, which are NOT moving averages) that people commonly see on various trading platforms is only a part of the Ichimoku system created by Goichi Hosoda. The system, in addition to the indicator composed of five lines (Tenkan-Sen, Kijun-Sen, Senkou Span A, Senkou Span B, Chikou Span), also includes three theories (which very few people in the West are familiar with):

  • Time Theory (or Cycle Theory, which helps identify the so-called Henka-bi, or “day of change”);
  • Wave Theory (which describes price movements based on wave patterns);
  • Price Theory (which calculates the potential extension of those wave movements to identify possible targets).

Ichimoku is a system that is at the same time:

  • Simple, because, as some of you have already mentioned, it has visual elements that allow traders to quickly grasp the overall situation of an asset (not coincidentally, the name itself contains the phrase “at a glance”);
  • Complex, because it is not just about buying/selling when the price breaks above/below the Kumo (the so-called “cloud,” which the creator never actually called that, but rather “resistance area”) or when the Tenkan-Sen and Kijun-Sen cross. Not at all! It is a system that requires its various components and theories to be used together in a holistic manner;
  • Complete, because it does not require additional indicators or tools, as it already includes elements of analysis regarding price movements, momentum, and, most importantly, time (in fact, it also incorporates concepts from other theories, such as Elliott and Wyckoff, which, in my view, are universal concepts that different authors have simply named differently).

The issue with Ichimoku is that its true essence is very little known, mainly because the original books written by Hosoda are difficult to find and read. As a result, especially in the West, the various authors who have attempted to spread its knowledge have often limited themselves to providing their very personal interpretation and adaptation of the system to make it more “digestible” for their Western audience (for the record, I am Italian).
Personally, I believe that anyone who talks about Ichimoku without mentioning the three theories does not know it well enough to be taken seriously.
Among Japanese authors, since Hosoda’s original books are hard to find, good substitutes in my opinion are the works by Fukunaga, Sasaki, and Hosoda’s nephew, Tessei. You can also find videos on YouTube by a very skilled Japanese trader who publishes in English, known as Japanese Trader Kei.
As for Western authors (again, in my opinion and based on my experience so far), the most advanced schools are the Polish and French ones, represented by figures such as Grzegorz Moskwa, Hervé Kieffer, and Walid Bouchenafa (alias Trador). Anyone interested can look for their material on YouTube.
I hope I have provided you with useful information and that I haven’t broken any rules by mentioning these authors. If not, I apologize in advance.

Thank you all for your attention.

Have a good evening :slightly_smiling_face:

1 Like
18

there is no indicator that you have to know! ichimoku is a different indicator comparing to most of other popular indicators and one thing this offers is that it helps to indicate based on time, yet, I do not say it is a must know indicator, you can win if you know pure price action too!

19

Wow great post!

I’m in the complex camp! :rofl:

I’ve seen this guy. Doesn’t he trade a 7 or 8 figure account?

Okay cool, some people to research!

1 Like
20

Hello, thank you for your comments. I’m glad that you appreciated my post :slight_smile:

Yes he does.
He did a great job!

1 Like