ichimoku cloud strategy

[jagankris]

Dear folks

Pl let me know what timeframe to be used for intraday, weekly positional, monthly positional and quarterly positional....

I found 2 mins or 5 mins timeframe suits intraday....2 hrs for weekly n 4 hrs for monthly n daily for quarterly positional trading....

By quarterly positional I mean entry n exit positions within a quarter period...thru 3 months future contract...

Kindly guide..

Dear Prakash,

Your words say that you are new to trading/TA and you are not ready for trading.
This is just a word of caution:- Don't trade during the learning phase and loose your trading capital.

My suggestions would be to start from the Basics
Spend more time in understanding chart reading/Price action/Learn TA.

Start from candle sticks
Price Pivots
Support/Resistance
Trends
Importance of Higher Time Frames
Price patterns.
Trend lines
MA's
Oscillators

Then ichimoku - how it is constructed
Ichimoku trade setups.
Advantages/Disadvantages of Ichimoku.
Then backtest your trade setups/system for the stocks/commodity you are planning to trade.

Stocks/Commodities are subjected to International trading/news over night risks and gap openings.
USD/INR fluctuations too will affect the commos.

Meanwhile do paper trading in Mt4.
And find out which time frame and risk tolerance level matches with you / you are comfortable.

So study/observe the markets for 1year before thinking of positional trading - this is just my view as I am risk averse and not comfortable to
trade (stocks) with out hedging positional and no way to hedge commodities.

If you are planning to invest long term in gold/silver better go for physical delivery than MCX.

Also check out the transaction costs involved in trading.
Taxations.

And after back testing(including the transaction costs) and having a system - and after successful trading in paper trading for few months start real time day trading.

Wish you good luck !!!

 

[Riskyman]

Dear folks

Pl let me know what timeframe to be used for intraday, weekly positional, monthly positional and quarterly positional....

I found 2 mins or 5 mins timeframe suits intraday....2 hrs for weekly n 4 hrs for monthly n daily for quarterly positional trading....

By quarterly positional I mean entry n exit positions within a quarter period...thru 3 months future contract...

Kindly guide..

Ichimoku, as far as I know can be used on any time frame as its a trend following system. What time frame you choose will depend on the kind of trader you are. You can trade1/3 5/15/30/60/120/240/540/1080 minutes if you feel like. The problem is that THE TREND CAN LOOK DIFFERENT ON ALL THESE TIME FRAMES. You have to choose the time frame.

 

[162295]

Dear All,

The best indicator i have used is Ichimoku cloud, suggest you to pls use 1 hour time-frame for short term trade of minimum 8-10 % return in 3-5 days.

Regards,

Deepak

 

[Prakashr01]

So 1 hr timeframe suits a 3 to 5 day positional trade then.
For intraday which is better .... 2 or 5 mins?
For a monthly positional can we use 4 hrs then ?
And for quarterly may be a weeks timeframe?

I find kumo cloud an all encompassing tech indicator and support resistances to be the basic of tech indicator....and I always do my paper trading entries n exits only when cloud break out happens........and mostly for intraday it works.,..

It shld work for positional too when conditions are favourable for trading unlike the current volatile global scenario,.....


For intraday we need no news and there is no need to think about overnight stuff and kumo cloud breakouts easily help us in identifying the buy entries or sell entries....the only thing is I have 5 mins kumo indicator and hence not sure if a 5 or a 2 min will help for intraday....kindly guide...

 

[aaru]

no kumo break out with any time frames will help if you do not plan on ur exits.. you can even check out the longest timeframes with ichimoku on it and see that the setting doesnt stay on it for ever.. and at times it so happens you make an entry based on kumo cloud and it reverses.., esp on lower(intraday) timeframes.. i liked what jagankris said.. be thorough on ur entry and exits.. if ur any timeframe can yield profits.. goodluc

 

[Prakashr01]

Aaru ...but then if it works for all timeframes we cannot use a 2 he timeframe for intraday right? And similarly you don't want to use a 5 min timeframe for a monthly positional trade when breakouts will be multiple in number using such smaller timeframes..... I believe the longer duration your trade positions are the kumo timeframes are longer as well....

 

[aaru]

that is correct.. and also ur R:R.. if you are following kumo breakout .. the shorter ur timeframe the faster you need to make an exit.. and shorter ur reward and ur risk too.. and vice versa( for same position size).. if you study ichi for a while you will understand S & R are respected better for bigger timeframes than smaller ones.. so like people suggested one need to know what kind of a trader one want to be and how much of a risk one can take.. i think the crucial part is exit.. you can check out fib levels.. or pivots for exits..

 

[Prakashr01]

This breakout strategy works well...kindly let me know if I am missing something...I am still paper trading....

1. Check if price is above kumo
2. Check if tk crossover has happened and t is over k
3. Check if chikou span in the past 26 period, is above price and not in consolidation or turbulence mode within cloud but span is above price and above cloud
4. Check if kumo cross over has happened in the future 26 period

If yes we got a bullish signal
Enter trade and exit when a tk cross over happens again...


Do the reverse for bear trade or short sell.

Also note if cross overs during trade entries are within or above kumo cloud and thickness of cloud is good.

Thnx.

 

[aaru]

all the settings for ichi are correct for bull / bear.. only.. if u wait for the confluence of all the signals u will have to wait longer and plus those will not define till when u should be in the trade.. try whatever strategies on paper.. for certain duration.. you will know the pros and cons.. :thumb:

 

[ARV]

Ichimoku charts are not a simple and straight forward trading system as described in many forums and web sites and the information given are only basic stuff.

it may take years before one start understanding it fully till then it is like in the story of blind mend men and elephants.

It is known as a great trend trading system however ur success depends on ur ability to use it to identify over sold /over brought state.

And lastly the best thing about ichimokku is that when u loose u won't loose much.