Ichimoku Kinko Hyo trading system...!

[CamelToeJoe]

I hope your trading has been treating you well. I want to go into detail on my method of recently.

First, I look at the chart using the traditional 9,26,52 settings.

This setting alone may give me all the information I need but it may not. If price action is below the cloud and the cloud is not near the price then I may want to plug in shorter time frames for my settings. I like to use 5,10,25 for this application. You will notice that once you use these settings, the cloud is now closer to price which will give us more relevant information regarding short term price movement and sentiment.

Price broke the cloud as price continued the positive trend

Going back to the 9,26,52 settings, the first thing I ask myself is where is price action located in regards to the cloud. As mentioned earlier, if it's below the cloud, but far away, I plug in 5,10,25 settings. If it's below the cloud, but close, I am looking for price to break into the cloud. For insight on if price might do this, I look to see if TS (blue line) is underneath price and supporting. Then I look at Stochastics. I look to see if stochastics are pointing up and also if it's oversold, overbought, or in the middle. If it's overbought, I may want to be careful because it will be harder for price to break into the cloud if it's currently overbought. If it's in the middle or oversold but still moving up, I can predict that this momentum has a very good chance of moving price into the cloud and breaking resistance.

Once price has moved into the cloud, I am looking at the cloud as a range for trading.

 

[CamelToeJoe]

The bottom of the cloud is support and the top of the cloud is resistance. Sometimes I enter trades that have moved into the cloud and then I sell or lock in profits when price moves through the cloud and then towards the top.

If price moves all the way through the cloud and breaks the top of the cloud resistance, a new green cloud will start or has already been forming. Here, if I am still in the trade, I better have already locked in profits. Now I take a look at stochastics again to see where we are at as far as being overbought. Sometimes a trade may be overbought but it continues to ripple up and down in the overbought area. Look for these a patterns past and present to give you an idea if we may continue to see more gains.

Most likely, if this were a bottom bouncer and it moved from under the cloud and then through the cloud to the top, we can expect the top of the cloud to be very strong resistance. The thickness of the cloud usually tells us how strong or weak resistance will be. As you may already know, the thinner the cloud, the easier it will be to break and the thicker the cloud the harder.

You can see here that price did indeed break the cloud but with stochastics being severely overbought, it is now sitting on the top of the cloud, but following the cloud back down.

So say we have a thin cloud and price is in the cloud at the moment.

TS is supporting and stochastics are pointing up. If stochastics are in the oversold area but still pointing up and TS is supporting I can predict that price will break the thin cloud resistance soon and we may possibly continue to see more gains. You can enter the trade in the cloud if you are willing to take that risk but to lower your risk, wait until price has exited the cloud for your in.

 

[CamelToeJoe]

Set your target entry around this area. The lower or more oversold it is, the better chance we have of making a profit in this situation.

Once price has moved out of the cloud and continues upwards, I will pay attention to how close TS/KS remain together and also how far away they remain from the close. The closer TS/KS remain in both situations, the better our odds are of seeing more gains to come.

At this point, the 9,26,52 settings should be showing a green cloud which may be a decent amount away from price action. In this case, we may want to plug in the 5,10,25 settings again to move the cloud closer to price action which will give us a better idea of our support levels offered by the cloud.

Watch as price moves closer to the cloud and as it does it may touch the cloud on the selloff (price may be moving down now). If it touches the cloud and then continues to move up again, you may consider adding more shares to your position at this point. If it falls through the cloud you may consider dumping the rest of your shares as you should have already locked in a considerable amount of profits (anywhere from 30% to 70% of total shares bought depending on your risk tolerance, goals, and trading style)

These techniques will help you determine your ins and outs in any market, anytime. Please ask questions or post your charts in your desired market and I will be sure to help you out.

 

[cnbondre]

HI.

CamelToeJoe,

THANKS A LOT FROM THE BOTTOM OF MY HEART FOR YOUR GUIDENCE.
YOUR CHARTS AND EXPLANATIONS IS VERY CLEAR :thumb:

MAY GOD BLESS YOU.

CNBONDRE

 

[CamelToeJoe]

Thank you cnbondre! I really appreciate the positive feedback.

 

[CamelToeJoe]

Watching S&P hold support on the cloud. The drop in the market right now is purely political. It's all good. Would like to see a nice run up the cloud for some profits :Thumbsup:

 

[CamelToeJoe]

Simplified CTJ Ichi In and Out's

I go long when Price is:

A. Just entering the cloud (if FullSTO is less than 70)
B. Just exiting the cloud (if FullSTO is less than 70)

I look for TS to be under price action. I also look for KS and the EMA20 to be under price action as well. The more support offered by either of these EMA's, the better.

I sell stocks when:
A. Price moves from the bottom of the cloud (support) and sell when it reaches the top of the cloud (resistance). This is what I call, "Trading in the Cloud". There are examples of this technique throughout my thread within the past 2 months.

B. If price leaves the cloud (broke resistance - now on support), I sell when price moves significantly ahead of TS/KS or price falls below either TS/KS. This is an ichi breakout and their charts are posted many times throughout my thread.

To understand the different time intervals and when to use them, please refer to my long post above.

The Kumo (cloud) is my bread and butter Good luck and if you have any questions/charts I'd be more than happy to help.

 

[cnbondre]

Simplified CTJ Ichi In and Out's

I go long when Price is:

A. Just entering the cloud (if FullSTO is less than 70)
B. Just exiting the cloud (if FullSTO is less than 70)

I look for TS to be under price action. I also look for KS and the EMA20 to be under price action as well. The more support offered by either of these EMA's, the better.

I sell stocks when:
A. Price moves from the bottom of the cloud (support) and sell when it reaches the top of the cloud (resistance). This is what I call, "Trading in the Cloud". There are examples of this technique throughout my thread within the past 2 months.

B. If price leaves the cloud (broke resistance - now on support), I sell when price moves significantly ahead of TS/KS or price falls below either TS/KS. This is an ichi breakout and their charts are posted many times throughout my thread.

To understand the different time intervals and when to use them, please refer to my long post above.

The Kumo (cloud) is my bread and butter Good luck and if you have any questions/charts I'd be more than happy to help.

Hi,

CTJ,

Thanks would be a small word for you.

I will remain oblige to you forever for your cotributions and detailed explaination that made

ICHI-TRADING-STRATEGY,

SOO... simple and easy to understand by a novoice like me.

MAY GOD BLESS YOU WITH ALL YOUR WISHES

:clap: Jai hoo " KUMO " :clap:


Regards,

CNBONDRE

 

[cnbondre]

@Camel,
nice work...please keep it coming!

sorry cant contribute much from my end. trading a different system now a days and refining it is taking a lot of time. hope to post it here soon...

once again...keep up the good work...!

LINKON DA,

Waiting egarly for your new system.

Regards,

cnbondre

 

[CamelToeJoe]

As you've probably noticed, I haven't been using the lagging line (chikou span) but I think it can be of decent use. The CS line is used to determine market sentiment. When it is above price action, then market sentiment is positive and when it is below price action, then market sentiment is negative. It is also very useful when drawing support and resistance as the line represents current price action shifted 26 days in the past. So all horizontal support and resistance lines can be drawn from it. IMO, the lagging line (CS) is best used as an indication of a positive trend when:

A. The CS line is inside of price action or very close to price action (previous 26 days - blue circles)

and

B. Price is in or very near the the cloud (black circles)

Even if you don't use it, it's something you should understand. You'll notice the correlation between MACD and the CS line in the example below. This too can be used as a buy signal but I don't recommend relying on just the MACD or CS as a buy signal.

The first buy signal was generated when price exited the cloud and stochastics were less than 70 with TS/KS offering support. The exit signal for this trade was generated when price fell below TS and stochastics had started dropping. You'll notice that KS (red) also remained much lower than price action here signaling a possible correction.

The second buy signal was generated when price broke into the cloud and stochastics were less than 70 with TS/KS offering support. It was actually pretty oversold here at around 20 which gave it some room to run. The exit signal was generated when price fell back into the cloud after a week or two of indecision with stochastics dropping with price below TS/KS.

The third buy signal was generated when price broke out of the cloud and stochastics were less than 70 (around 40 here) and TS/KS were offering support. The exit signal was generated when price fell back into the cloud and below TS/KS.