Ichimoku Kinko Hyo trading system...!

[vibhunair]

Dear Linkon da Kudos for starting such a wonderful thread. Athough its been two years since started I m a new commer in the method and started reading yesterday only.

Please see this weekly chart of Indus Ind Bank. The Kijun Tenken crossover has not yet happend but the price is above the Kumo. Its almost taken support above the Kumo. The Kumo is also green suggesting Bullish sentiment. Can we go long on the weekly if the crossover happens?

http://img8.imageshack.us/i/indusind.jpg/


now please look at the daily below. The Kijun Tenken has crossed over indicating buy, But the price is within the Kumo Also the Kumo is showing bearish crossover. Can we play for the breakout from Kumo in the daily considering the fact that weekly looks strong?

http://img858.imageshack.us/i/indusinddaily.jpg/

I was thinking to play the daily break out and then add once the crossover happens in the weekly.

Please comment on my observation.

Thanks in advance

 

[vinst]

Vinst, both settings are going to capture the double bottom. It is a candle formation which has nothing to do with any indicators

What I meant by capturing was that 9,26,52 cloud bottom signalled a buy there, whereas 5,20,40 could not. Also, 9,26,52 provided accurate resistance at top of the cloud while the intervening top of double bottom was formed.

 

[4xpipcounter]

LOL, just goes to show the different perceptions. I was only looking at it terms of the candle formation, and not where it is relative to the cloud.
Nice insight! Thanks!

What I meant by capturing was that 9,26,52 cloud bottom signalled a buy there, whereas 5,20,40 could not. Also, 9,26,52 provided accurate resistance at top of the cloud while the intervening top of double bottom was formed.

 

[starzz]

"Ichimoku Kinko Hyo"..The name says everything..Its the greatest trading system ever known to human beings.

Warren Buffet strictly follows this system.

By the way..How much money are you people making by following this system?

 

[4xpipcounter]

Starzz, my question to you is, "When did he start using it?" I love the ichimoku indicator, but the last time I heard WB does not use it. His style is such that he enters trades with ridiculously low margin, waits for the trade to move in his favor, and then takes it out for millions. This is because he has billions to start.

I'm sure anyone is going to ever want to divulge how much money they are making. I'm trading FT, and making a much better than average return on my money if that helps. I also don't use the ichimoku as a standalone, even though it could be used that way.

"Ichimoku Kinko Hyo"..The name says everything..Its the greatest trading system ever known to human beings.

Warren Buffet strictly follows this system.

By the way..How much money are you people making by following this system?

 

[4xpipcounter]

Vibhunair, the weekly kijun is a straight line, and it will be hit from the downside, therefore, the most likely event is a bounce off that level. In waiting for the crossover, the best thing to do is wait for the candle to close on top of the kijun. It is also likely the top of the daily cloud will act as R, and so initial contact with it will result in a bounce, which will probably be a simultaneous effect with the weekly kijun. BTW, I really like how you use the 2 TF's in making your trading decision.

Dear Linkon da Kudos for starting such a wonderful thread. Athough its been two years since started I m a new commer in the method and started reading yesterday only.

Please see this weekly chart of Indus Ind Bank. The Kijun Tenken crossover has not yet happend but the price is above the Kumo. Its almost taken support above the Kumo. The Kumo is also green suggesting Bullish sentiment. Can we go long on the weekly if the crossover happens?

http://img8.imageshack.us/i/indusind.jpg/


now please look at the daily below. The Kijun Tenken has crossed over indicating buy, But the price is within the Kumo Also the Kumo is showing bearish crossover. Can we play for the breakout from Kumo in the daily considering the fact that weekly looks strong?

http://img858.imageshack.us/i/indusinddaily.jpg/

I was thinking to play the daily break out and then add once the crossover happens in the weekly.

Please comment on my observation.

Thanks in advance

 

[vibhunair]

Thank you 4xpipcounter... Hmm so I should wait for the cnadle to close above the kijun and then go long over the high of that candle in the weekly.

BTW, I really like how you use the 2 TF's in making your trading decision.

Comming from someone as experienced as you that is a wonderful compliment for a newcommer like me... And a ton load of encouragement.. Thanx again
Hope to carry on ahead from here...

 

[linkon7]

Dear Linkon da Kudos for starting such a wonderful thread. Athough its been two years since started I m a new commer in the method and started reading yesterday only.

Please see this weekly chart of Indus Ind Bank. The Kijun Tenken crossover has not yet happend but the price is above the Kumo. Its almost taken support above the Kumo. The Kumo is also green suggesting Bullish sentiment. Can we go long on the weekly if the crossover happens?

now please look at the daily below. The Kijun Tenken has crossed over indicating buy, But the price is within the Kumo Also the Kumo is showing bearish crossover. Can we play for the breakout from Kumo in the daily considering the fact that weekly looks strong?

I was thinking to play the daily break out and then add once the crossover happens in the weekly.

Please comment on my observation.

Thanks in advance

My way of looking at ichi is more basic in nature. When i am looking at daily time frame, i am also looking at the relation of the weekly and monthly timeframe on the same eod chart.

Nothing is holier than price. period. When the trend line broke, all i look for is if the previous high is taken out... We did have a closing above the pivot lower high and then it was a matter of patiently waiting for retracement. retracement for me is the stochastic making a x-over.

Being a TA freak, i go 1 step ahead and watch for continuation pattern on rsi-20. My RSi is shifted 20 spaces to the left so that it is exactly below my CS ( line chart). RSI did make a higher high higher low with price and that is good enough confirmation for me to punch my buy...

As further confirmation, TS (weekly) is above KS (monthly). The fact that it is below cloud, is of little importance to me. Why...? simply because i prefer having a better trade location. Break out trades normally are high risk high return and I dont like the word risk. My entry would be at the Doji, before the yellow bar, with a stop loss at low of that doji bar... simply because my stop loss would be smaller. A more conservative entry would be the yellow bar after the break of the doji- high.

My next line of action would be to add when cloud top got pierced....

Just one word of advice... Market doesnt care what system u follow. If you wait for too much confirmation, u end up with poor trade location. Your stop loss is wider and holding on to winners becomes difficult. After all, only thing we can control is our risk per trade.

 

[vibhunair]

Wow!! Thanks linkon da for taking time out and explaining in such a detail... So as per you I m a bit late.
hmmm May be I was looking at the ichimoku as a standalone indicator and need to look at it in conjunction with other indicators more importantly the price action too....

 

[linkon7]

Wow!! Thanks linkon da for taking time out and explaining in such a detail... So as per you I m a bit late.
hmmm May be I was looking at the ichimoku as a standalone indicator and need to look at it in conjunction with other indicators more importantly the price action too....

ICHI is price action in its purest form... The line chart.

Any bar has 4 information relative to that time period. The high represents the maximum the bulls are willing to buy, the low represents the maximum the bears are willing to sell, the tussle between the two ends the time period at the close of the bar. So in effect the close of the bar represents the cumulative sentiments of the whole bar. A rising sentiment is an up trend. If the bulls are aggressive above a particular level, then they wont let a close above that level.

If u notice the eod chart of nifty, it clearly shows 5550 as the level we repeatedly failed to close above. the fact that we made a high of 5610 will affect the TS, KS and coud but it wont affect the line chart. So all trendlines and horizontal support / resistance line are drawn on this line chart.

The brilliance of this method is that trend lines and horizontal support resistance line are exactly the same in any time frame. If i am tracking a 3 min chart, i will be able to gauge the change in sentiment much faster than a 5 min chart follower with much more precision.

The median or the mid point of a highest high and lowest low of the series of price bars represents the momentum. Like if we look at weekly chart, 1 bar represents 1 week of trading activity. If we have a week which has a higher high and a lower low than the previous week then we consider it as a rise in bullish sentiment. But to know this change sentiment, we need to wait for the bar to close on friday. Ichi is very smart in gauging this change in sentiment. It splits this week into 5 bars. so every time a new bar is completes the last data is ignored. if this particular bar had made a high which is higher than the last 4, then the median shifts up. if the next bar that completes has a high that is higher than the previous 4, then the median shift up some more. by the time the week completes and the shift in momentum is clear to ichi followers long before a weekly bar follower.

Same is the case with kijun which represents a yet higher time frame. on eod chart, a setting of 20 will represent a monthly chart.

A cross over of the TS and KS is a change in sentiment, but normally this cross over is at a very disadvantageous trade location. Once the change in sentiments occur, we wait for retracement on the cs to give signal for entry in that direction. I prefer entry on the second cycle as that is when the maximium distance is covered...

the cloud represents buying / selling interest of the largest time frame follower. On the eod chart, cloud represents the bi-monthly time frame follower or investors who will buy and keep it for years. In a bull market, they enter the market when only when valuation is mouth watering and normally they are the last persons to enter. In a bear market, the scenario is just the reverse.