Trading ICHIMUKU...!

[sr114]

Linkon

thanks for the explanation of ichi

regards n happy trading
sr114

 

[linkon7]

5. The process of triangulation on CS continues. The angle of the trend line tells us the degree of aggressiveness of the market participants in a give direction.

6. Next task is to isolate the support / resistance on the CS. A support / resistance horizontal line that has acted as turning point on 3 or more occasions is terms as a 3 touch. It deserves to stay on the chart for future reference as we can assume market to react to this lvl in the near future.

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[linkon7]

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7. Now we look at KS and TS and their interpretation.

This 2 lines are seen as a pair. If i am trading a 3 min time frame, then my TS setting will be 5 and will represent the development of the 15 min time frame. KS will get a setting of 20, as that will represent the development on hourly time frame. Kumo will get a setting of 40 as that will be 2 hr time frame.

8. when KS is flat, it means no new high / low is made in the last 20 bars. Expectation is of a sideways market with no major action from either side.

9. When TS crosses KS from below, it means a crossover of time frames and a rise in bullish sentiments.

 

[linkon7]

In reality, CS does a far better job. Support and resistance is best visible on the line chart as it is clean and easy to be decisive. The trend line on CS give us the direction of the trade. It also gives us our must exit point.

CHART A

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CHART B

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In chart A, CS shows the 4939 to be a 3 touch reference level. When it broke down, we could draw a trend line from the top with a valid stop loss on 4958, short was a valid trade with a valid stop loss. Trailing it with trend line and new reference level would mean, i would still remain short on this trade with no reason to exit yet visible.

The chart B, with cloud as reference level, would make me short below 4869 (low of the first bar piercing the cloud) with a stop above the 4938 mark (value top of the cloud when cloud got pierced)

In both the cases, TS crossed KS and was pointing towards weakness. But if one gave importance to cloud, a crossover above the cloud would be seen as a weak signal. CS shows that a valid 3 touch reference level got broken and that lvl itself will offer resistance now.

Nothing is holier than price and how market participants reacted to a particular level (AKA support-resistance) and CS does the best job in helping me be more decisive.

PS : its a 15 min chart of nifty futures, with TS = 4 (hourly), KS = 25 ( daily) and kumo = 50 (2 days tf)

 

[linkon7]

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If one uses the cloud for their decision making then the distance they cover is a small chunk of what CS would offer in the same trade.

 

[linkon7]

decission support tools...!
I use a slightly smooth RSI to track the momentum of the market. Mostly i look for continuation patterns on the RSI as reinforcement to my decision to hold and build on my trade.

I shift the RSI 20 bars to the left to align it with the CS. A pivot on CS needs to be valid and only then we compare it equivalent RSI value.

Divergence / reverse divergence is a strong signal for exit.

Divergence is a support tool for entry, if and only if, i have a valid stoploss from CS and TS-KS combo is showing weakness.

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[linkon7]

I use stochastic with standard setting to time the entry.

Only purpose of this oscillator is to identify the short term cycle.

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[linkon7]

afl for price...!

_SECTION_BEGIN("Ichi 3R 4");  
SetChartOptions(0,chartShowArrows|chartShowDates); 
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) Vol " +WriteVal( V, 1.0 ) +" {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 )) ));
GraphXSpace = 10;
filt = Param("filter",0,0,20,0.1);
tu = Param("TS ",5,2,50,1); 
su = Param("KS ",20,2,100,1);
ku = Param("KUMO ",40,2,200,1);
sh = Param("CS Shift",20,10,50,1); 

ks = SL = ( HHV( H, su ) + LLV( L, su) )/2;

ts = TL = ( HHV( H, tu ) + LLV( L, tu  ))/2;
Span1 = (( SL + TL )/2);
Span2 = (HHV( H, ku) + LLV(L, ku))/2;
top = IIf(Ref(span1,-su) > Ref(span2,-su),Ref(span1,-su),Ref(span2,-su));
bot = IIf(Ref(span1,-su) < Ref(span2,-su),Ref(span1,-su),Ref(span2,-su));

Plot( Close, "", colorAqua, styleThick+styleLine+styleNoLabel,Null, Null, -sh  );

ichi_col = 
IIf(ts > ks AND ks > Ref(span2,-su)  , colorBlue,
IIf(ts < ks AND ks < Ref(span2,-su), colorCustom12,
colorGrey40));




Plot(SL,"SL",colorWhite,styleThick); // standard, base, or kijun-sen line

Plot(TL,"TL",colorCustom12,styleThick); // turning, conversion, or tenkan-sen line
Plot(Close,"price",colorGrey40,styleBar+styleThick);
Plot (Ref(span2,-su),"",colorDarkYellow,styleThick);
Plot (Ref(span1,-su),"",colorYellow,styleThick);

PlotOHLC(Span1,Span2,Span1,Span2,"",IIf(Span1>Span2,colorDarkOliveGreen,colorDarkRed),styleCloud|4096,0,0,su);


ts = tl;
ks = sl;

 



Title = EncodeColor(colorWhite)+ "Linkon " + " - " +  Name() + " - " +  EncodeColor(colorRed)+ Interval(2)+ EncodeColor(colorWhite) +
 "  - " + Date() +

"\n"+
WriteIf(Ref(H,-1) > Ref(H,-2),EncodeColor(colorBrightGreen),EncodeColor(colorRed))+"ex  "+Ref(H,-1)+WriteIf(H > Ref(H,-1),EncodeColor(colorBrightGreen),EncodeColor(colorRed))+" Hi "+H+
EncodeColor(colorYellow)+"T ="+(Ref(H,-1)+filt)+
"\n"+ 
EncodeColor(colorWhite)+"Op "+O+WriteIf(C > O, EncodeColor(colorBrightGreen),EncodeColor(colorRed))+" Cl : " +C+
EncodeColor(colorYellow)+"R = "+round(10*(H-L))/10+

"\n"+
WriteIf(Ref(L,-1) < Ref(L,-2),EncodeColor(colorRed),EncodeColor(colorBrightGreen))+"ex  "+Ref(L,-1)+WriteIf(L < Ref(L,-1),EncodeColor(colorRed),EncodeColor(colorBrightGreen))+" Lo "+L+
EncodeColor(colorYellow)+"T ="+(Ref(L,-1)-filt)+

"\n"+"\n"+

EncodeColor(colorWhite)+"\nIchi Says :"+
WriteIf(L > ts AND ts > ks AND ks > top,EncodeColor(colorBlue)+"clear UpTrend",
WriteIf(H < ts AND ts < ks AND ks < bot,EncodeColor(colorCustom12)+"clear Dntrend",
""
))+  


EncodeColor(colorCustom12) + "\nTF+1 @  " +WriteIf(C > tl, EncodeColor(colorBrightGreen),EncodeColor(colorRed))+tl+
EncodeColor(colorWhite) + " \nTF+2 @  "+WriteIf(C > sL, EncodeColor(colorBrightGreen),EncodeColor(colorRed))+sl+
EncodeColor(colorDarkYellow) +   "\nTF+3 @  " +WriteIf(C > Ref(span2,-su), EncodeColor(colorBrightGreen),EncodeColor(colorRed))+Ref(span2,-su) + 
EncodeColor(colorYellow) +" \nTD     @  "+ WriteIf(C > Ref(span1,-su), EncodeColor(colorBrightGreen),EncodeColor(colorRed))+Ref(span1,-su) +

"\n"+"\n"
;

_SECTION_BEGIN("Time Left"); 
function GetSecondNum()
{
    Time 		= Now( 4 );
    Seconds 	= int( Time % 100 );
    Minutes 	= int( Time / 100 % 100 );
    Hours 	= int( Time / 10000 % 100 );
    SecondNum = int( Hours * 60 * 60 + Minutes * 60 + Seconds );
    return SecondNum;
}
RequestTimedRefresh( 1 );
TimeFrame = Interval();
SecNumber = GetSecondNum();
Newperiod = SecNumber % TimeFrame == 0;
SecsLeft = SecNumber - int( SecNumber / TimeFrame ) * TimeFrame;
SecsToGo = TimeFrame - SecsLeft;

x=Param("xposn",0,0,1000,1);
y=Param("yposn",0,0,1000,1);

GfxSelectSolidBrush( ColorRGB( 230, 230, 230 ) );
GfxSelectPen( ColorRGB( 230, 230, 230 ), 2 ); 
if ( NewPeriod )
{
   	GfxSelectSolidBrush( colorYellow );
	GfxSelectPen( colorYellow, 2 );  
//	Say( "New period" );  
}
GfxRoundRect( x+55, y+17, x-4, y-2, 0, 0 );
GfxSetBkMode(1); 
GfxSelectFont( "Arial", 9, 700, False );
GfxSetTextColor( colorBlack );
GfxTextOut(  ""+SecsToGo+" / "+NumToStr( TimeFrame, 1.0 ), x, y );
_SECTION_END();

 

[linkon7]

Afl for rsi...!

_SECTION_BEGIN("rsi div 20 bar shift");  
P = Param("Priod RSI", 14, 9, 14, 1);
VRSI = round(10*DEMA(RSI(14),5))/10; 

Length = 100;
Lapse = 3;
 
fUp = VRSI > Ref(VRSI, -1) & VRSI > Ref(VRSI, 1) & VRSI >55;
fDown = VRSI < Ref(VRSI, -1) & VRSI < Ref(VRSI, 1) & VRSI < 45;

Div = 0;

for(i = Length; i < BarCount; i++)
{

// Down
if(fUp[i])
{
k = i-1;
do
{
if(VRSI[k] > VRSI[i] & fUp[i] & fUp[k])
{
if(C[k] < C[i] & i-k > Lapse)
{
Div[i] = 1;
}
k = i-Length;
}
else
k = k-1;
} while( k > i-Length );
}

////////////////////////////

// Up

if(fDown[i])
{
k = i-1;
do
{
if(VRSI[k] < VRSI[i] & fDown[i] & fDown[k])
{
if(C[k] > C[i] & i-k > Lapse)
{
Div[i] = -1;
}
k = i-Length;
}
else
k = k-1;
} while( k > i-Length );
}

}

 

Fon = IIf(Div == 0, 0, 1);

Col = IIf(Div == 1, colorRed, IIf(Div == -1, colorBrightGreen, colorGrey40));

Color = IIf(Div == 1, colorRed, IIf(Div == -1, colorBrightGreen, 1));

Color = IIf(fUp == 1, colorRed, IIf(fDown == 1, colorBrightGreen, 1));

Div = IIf(Div == 0, Null, abs(Div));
Fon = abs(Div);

Base = DEMA(RSI(14),5);

for( i = 1; i <= 1; i++ )
{
ResBase = LastValue(Peak(Base,5,i));
SupBase = LastValue(Trough(Base,5,i));
Plot(ValueWhen( ResBase==Base, HHV(base,3) ), "Resist Level", colorRed, styleLine,0,0,-20);
Plot(ValueWhen( supbase==Base, LLV(base,3) ), "Support Level", colorGreen, styleLine,0,0,-20);
Plot(ValueWhen( ResBase==Base, HHV(base,3) ), "Resist Level", colorRed, styleLine+styleNoLabel,0,0,-15);
Plot(ValueWhen( supbase==Base, LLV(base,3) ), "Support Level", colorGreen, styleLine+styleNoLabel,0,0,-15);
Plot(ValueWhen( ResBase==Base, HHV(base,3) ), "Resist Level", colorRed, styleLine+styleNoLabel,0,0,-10);
Plot(ValueWhen( supbase==Base, LLV(base,3) ), "Support Level", colorGreen, styleLine+styleNoLabel,0,0,-10);
Plot(ValueWhen( ResBase==Base, HHV(base,3) ), "Resist Level", colorRed, styleLine+styleNoLabel,0,0,-5);
Plot(ValueWhen( supbase==Base, LLV(base,3) ), "Support Level", colorGreen, styleLine+styleNoLabel,0,0,-5);
Plot(ValueWhen( ResBase==Base, HHV(base,3) ), "Resist Level", colorRed, styleLine+styleNoLabel);
Plot(ValueWhen( supbase==Base, LLV(base,3) ), "Support Level", colorGreen, styleLine+styleNoLabel);

}


Title = EncodeColor(4)+"RSI(" + WriteVal(P, 2.0) + ")" + EncodeColor(colorWhite) + " ="+WriteVal(Vrsi);
Plot( Vrsi, "RSI", Col, 5,0,0,-20);
Plot( 25,"", 4, 16+4096);
Plot( 75,"", 4, 16+4096);
//Plot(Fon, "", Color, 16384+32768+4096, MinValue = 0, MaxValue = 1);
_SECTION_END();

 

[linkon7]

AFL for stoch...!

_SECTION_BEGIN("Stochastic Slow");  
t = Param("Stoch period",15,5,100,1);   
sk = StochK(15,3); //StochK(t,5); 
sd = WMA(sk,3);//StochD(t,5,3); 
//s = Ref(sk,-1);
Plot( Sk, "", IIf(sk > Ref(sk,-1),colorAqua,colorRed), styleDashed );
Plot( SD, "", IIf(sd > Ref(sd,-1),colorAqua,colorRed), styleThick );  

C80 = BarsSince(Cross(sd,80));
C20 = BarsSince(Cross(20,sd));


//Buy = IIf(c20 > 5 ,Cross(sd,20),Cross(sk,sd)) ;
Buy   = IIf(c20 > 4 AND Ref(sd,-1) < 20,Cross(sd,20),Cross(sk,sd)) ;

Short = IIf(C80 > 4 AND Ref(sd,-1) > 80,Cross(80,sd),Cross(sd,sk)) ;    
//Sell = Short;
//Cover = Buy; 
PlotShapes(Buy*shapeHollowSmallUpTriangle,colorYellow);
PlotShapes(Short*shapeHollowSmallDownTriangle,colorYellow);


Plot(80,"",colorGrey40,styleDashed);
Plot(20,"",colorGrey40,styleDashed);

//----------stoch div........................................................

ST33=SD; 
TR1=LLVBars(ST33,4);
TR2=IIf(ST33<30 AND TR1>0 AND Ref(TR1,-1)==0,Ref(ST33,-1),0);
TRC=IIf(TR2>0,C,0);
vs=ValueWhen(tr2, Ref(st33,-1), 1);
dvs=vs-Ref(vs,-1);
vc=ValueWhen(trc, LLV(C,3), 1);
dvc=vc-Ref(vc,-1);
diver=IIf(dvs>0 AND dvc<0,30,0);
DAS=BarsSince(Ref(TR2,-1)>0);
DD=IIf(DAS<20 AND C>=Ref(C,-1),DIVER,0);
Buyd=DD>0 ;

ST33=sd;
TR11=HHVBars(ST33,4);
TR21=IIf(ST33>70 AND TR11>0 AND Ref(TR11,-1)==0,Ref(ST33,-1),0);
TRC1=IIf(TR21>0,C,0);
vs1=ValueWhen(tr21, Ref(st33,-1), 1);
dvs1=vs1-Ref(vs1,-1);
vc1=ValueWhen(trc1, HHV(H,3), 1);
dvc1=vc1-Ref(vc1,-1);
diver1=IIf(dvs1<0 AND dvc1>0,90,0);
DAS1=BarsSince(Ref(TR21,-1)>0);
ddd1=IIf(DAS1<20 AND C<Ref(C,-1),DIVER1,0);
Selld=ddd1==90;
PlotShapes ( IIf(Selld, shapeStar, shapeNone), colorRed, 0 , SD,10);
PlotShapes( IIf(Buyd, shapeStar, shapeNone),  colorBrightGreen, 0, SD,-10);

filt = 0;
Title = 
"SK : " + SK+
"\nsd : " + sd+
"\n"+

WriteIf(C80 > 1 AND Ref(sd,-1) > 80, "c80  "+C80,"")+
WriteIf(C20 > 1 AND Ref(sd,-1) < 20, "c20  "+C20,"")+
"\n"

;