Trading ICHIMUKU...!
- Thread starter linkon7
- Start date
Here's the 15min Chart of Minifty with Ichimoku Settings of 4,25,50 representing Hourly, Daily and 2-Days TF:
1. Green Dotted Lines are plotted to mark the Highest and Lowest points of the range; ie; around 5240 and 4850 respectively....
2. & 3. DarkPink Dotted Lines connect the Pivots on Chikou Span (CS plotted in Color Aqua)..... The reference level for Shorts is around 5079 and that for Longs is around 4863.....
4. These represent the valid Stops for the trade and hence we may look forward to a trade on either side....
5. The present angle of the trendlines show that Bears are aggressive than Bulls....
6. Now we plot the Horizontal Support/Resistance lines marked as Red Dotted Lines around 5005-5010 region and 5145-5150 region.....
7. & 8. Now we have a look at Tenkan Sen (TS plotted in Color Yellow) and Kijun Sen (KS plotted in Color Red).... Neither of them is flat representing that price is continuously making new Highs/Lows...
9. Recently TS has crossed above KS from below indicating a rise in Bullish Sentiments among Market Participants....
Conclusion 1: We also note that CS has taken out the recent Pivot High after forming a Pivot Low.... and the fact that TS-KS Combo has given a Bullish Crossover, we may look forward to go Long with Stops at our Reference Level aka recent Pivot Low around 4863.... If the Trade moves in our favour, then the areas of alert are the Top of Cloud (presently around 4980) and the two Dotted Red Horizontal Lines....
Conclusion 2: Or else, we may wait for the DownSloping Trendline to get broken and then take the trade on the Long Side....
Note: Linkon Sir.... does it look good
Regards
1. Green Dotted Lines are plotted to mark the Highest and Lowest points of the range; ie; around 5240 and 4850 respectively....
2. & 3. DarkPink Dotted Lines connect the Pivots on Chikou Span (CS plotted in Color Aqua)..... The reference level for Shorts is around 5079 and that for Longs is around 4863.....
4. These represent the valid Stops for the trade and hence we may look forward to a trade on either side....
5. The present angle of the trendlines show that Bears are aggressive than Bulls....
6. Now we plot the Horizontal Support/Resistance lines marked as Red Dotted Lines around 5005-5010 region and 5145-5150 region.....
7. & 8. Now we have a look at Tenkan Sen (TS plotted in Color Yellow) and Kijun Sen (KS plotted in Color Red).... Neither of them is flat representing that price is continuously making new Highs/Lows...
9. Recently TS has crossed above KS from below indicating a rise in Bullish Sentiments among Market Participants....
Conclusion 1: We also note that CS has taken out the recent Pivot High after forming a Pivot Low.... and the fact that TS-KS Combo has given a Bullish Crossover, we may look forward to go Long with Stops at our Reference Level aka recent Pivot Low around 4863.... If the Trade moves in our favour, then the areas of alert are the Top of Cloud (presently around 4980) and the two Dotted Red Horizontal Lines....
Conclusion 2: Or else, we may wait for the DownSloping Trendline to get broken and then take the trade on the Long Side....
Note: Linkon Sir.... does it look good
Regards
hosting images
Very Good...!
Is it a contra long...? may be...! As we have a 3 touch trendline above us. Till the time market break the ref lvl of 5037, there is no shift in trend. What we see on the chart is a strong presence of buyers near the 4860 level. (means our safe way of going long is to short the 4800 put of december series and our exit will be buying Nov series IF and only IF we close below the 4860 mark on 15 min tf).
We have a new range extension from 5000 lvl to 4844 on the CS... ! What we see now is called a complex correction of the fall...! TS crossing the KS from below signifies a shift in momentum. But shift of momentum can be interpreted as bears booking profit and hence adding to the net positive order flow.
Again, what we know for sure is,
Down trend line is not broken. It is a 3 touch, hence very strong. Means bears control the market.
Bears not aggressive any more, which is good for defensive longs only.
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The red / green value are the value of rsi's pivots. It helps in detecting continuation patterns / divergence on rsi.
If price breaks it previous pivot high and RSI breaks its pivot hit, then the up trend is strong. We want to ride the trade and keep our trailing stops at a distance to give it room.
If price makes a new high, while rsi fails to break its pivot high, it can mean short covering and lack of physical buying. A new high is made with lesser momentum, so exit the trade as soon as possible, or trailing it with tight stoploss.
If price breaks it previous pivot high and RSI breaks its pivot hit, then the up trend is strong. We want to ride the trade and keep our trailing stops at a distance to give it room.
If price makes a new high, while rsi fails to break its pivot high, it can mean short covering and lack of physical buying. A new high is made with lesser momentum, so exit the trade as soon as possible, or trailing it with tight stoploss.
Linkon Sir.... I would request you to please show us some more model trades.... Any TimeFrame..... How you decide to enter, adding or cutting the position, how you use the reference levels, exits... etc etc.... A few more model trades and we would be good enough to put up our charts.... There's no hurry, do it when its convenient for you.....
I have recently started looking at Ichimoku charts and I am starting to like it....
I have recently started looking at Ichimoku charts and I am starting to like it....
We have to accept the instrument we trade with its nature and modify our methodology to suits the instrument. While trading nifty futures, we seem to have 70% of the Intraday movement covered by gaps and then the eternal question of whether we will fill the gap or continue with the trend goes on in the mind through out the intraday session.
Any trend following setup will have a problem handling such gaps and prolonged sideways intraday movement will give false signals. We have frequent instances where sideways movement is followed by a wide bar but is not followed up with sufficient range extension. Since our entry is delayed, our stoploss is relatively wide, we rely on trend continuation to give us profit. while there are few days like yesterday where movement is single time framed and gives windfall profits. The bad days takes away a good chunk of this profit very fast from our account.
While trading nifty with a pure trend following setup like ichi, I prefer trading it on a 30 min time frame. To minimize risk, i prefer going the options route. Since i know i will be carrying the position over night till i manage to capture 80% of the trend, its always better to go with spreads.
If a spread cost 30-40, then first objective becomes to job this and reduce cost to below 10. This way, I give it a lot of room to move in my desired direction without having to worry about time decay and gaps against my position. Worst case scenario, trade becomes a scratch trade...!
Any trend following setup will have a problem handling such gaps and prolonged sideways intraday movement will give false signals. We have frequent instances where sideways movement is followed by a wide bar but is not followed up with sufficient range extension. Since our entry is delayed, our stoploss is relatively wide, we rely on trend continuation to give us profit. while there are few days like yesterday where movement is single time framed and gives windfall profits. The bad days takes away a good chunk of this profit very fast from our account.
While trading nifty with a pure trend following setup like ichi, I prefer trading it on a 30 min time frame. To minimize risk, i prefer going the options route. Since i know i will be carrying the position over night till i manage to capture 80% of the trend, its always better to go with spreads.
If a spread cost 30-40, then first objective becomes to job this and reduce cost to below 10. This way, I give it a lot of room to move in my desired direction without having to worry about time decay and gaps against my position. Worst case scenario, trade becomes a scratch trade...!
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