Camel, I've been using the ichimoku for a little over 3 years. I was suing it for a year or more before I even experimented with the settings. To this day, it is still set on the default (9,26,52). I figure if it works , don't change it.
The bottom line is the lower the MA's the faster they move, which also means the faster they will deliver a signal. The faster the signal is delivered, the higher the probability of getting a false signal.
Another sneaky little secret I learned is that all the traders I know that use the ichimoku as a standalone indicator all use the the default settings. The one that taught me the usage of it uses it as a standalone and the default settings.
The bottom line is the lower the MA's the faster they move, which also means the faster they will deliver a signal. The faster the signal is delivered, the higher the probability of getting a false signal.
Another sneaky little secret I learned is that all the traders I know that use the ichimoku as a standalone indicator all use the the default settings. The one that taught me the usage of it uses it as a standalone and the default settings.
I presented this idea on another board so I thought I would present it here as well.
My idea is that there is no reason to shift the cloud x periods ahead.
First, let's examine what we are looking at when we shift the cloud x periods ahead.
We are looking at 2 moving averages (highest high + lowest low / 2). When price reaches the cloud, we are observing prices reaction to two moving average prices from x periods ago.
Now, shift the cloud even with the current price. If we want to see price reacting with 2 moving averages from x periods ago, we can look to the Chikou Span and it is giving us the same exact information that we see when the cloud is shifted forward. The only difference is that I am referencing Chikou (prices close) instead of the candles. Does that make sense?
I also believe that using 4 moving averages is a little much but that's just me. The simpler the solution, the better. Less lines, less clutter, but the same information is present. (Occham's Razor)
Like Linkon, I recommend using periods that match the time frame you are viewing. i.e. 22 periods for an Hourly chart (Length of time index/currency futures are open in the US each day)
Please share your thoughts/constructive criticism.
For this example, I am showing 9,26 (17.5 for SSA, and 52 for SSB) settings.
My idea is that there is no reason to shift the cloud x periods ahead.
First, let's examine what we are looking at when we shift the cloud x periods ahead.
We are looking at 2 moving averages (highest high + lowest low / 2). When price reaches the cloud, we are observing prices reaction to two moving average prices from x periods ago.
Now, shift the cloud even with the current price. If we want to see price reacting with 2 moving averages from x periods ago, we can look to the Chikou Span and it is giving us the same exact information that we see when the cloud is shifted forward. The only difference is that I am referencing Chikou (prices close) instead of the candles. Does that make sense?
I also believe that using 4 moving averages is a little much but that's just me. The simpler the solution, the better. Less lines, less clutter, but the same information is present. (Occham's Razor)
Like Linkon, I recommend using periods that match the time frame you are viewing. i.e. 22 periods for an Hourly chart (Length of time index/currency futures are open in the US each day)
Please share your thoughts/constructive criticism.
For this example, I am showing 9,26 (17.5 for SSA, and 52 for SSB) settings.