Ichimoku Kinko Hyo trading system...!

[cnbondre]

Dear CN Bondre,
Selecting the equity is a different game. That you have to do EOD Analysis and select the equity. Once the equity is selected then you have to decide for time frame. If you want to go for Swing trade then 60 Minute Time frame is good. I have seen this is giving good result.
After getting the buy signal see whether it is above cloud or not. It should be above the cloud possitivelly. If 26 period is above the Price Line it is further good.
If you are going for intraday then 2 minute is good. Once the signal is given for buy you have to go above that bar.
It is seen that after giving the signal price moves in opposite direction for some time. It is very common. So better you give a stoploss order. Whenever price is coming to that level your order will triggered.
I dont go for Scanning. Normally seeing the market move I will pick up the equity.
Today The market was up. So I would have selected HDFC Bank and SBI. Both these equities have given buy signal on 60 minute yesterday. For Example 60 Minute signal for HDFC BANK was above 1460 at 3PM Bar. Today price opened above 1460. I would have gone long above 1st bar high i.e around 1485 and exited above 1500. For exit there is no hard and fast rule. If price is not moving I will exit.
It is not difficult. Just try and you will succeed.
On 60 minute Time frame if you enter immediately after the signal it is giving very high return as a swing trade.
For intra day knowledge of candlestick pattern, market move etc are helpful.
I feel scanning is not very useful in present shape. We have to add some filter. I am doing individual stock of Nifty. It hardly takes 5-7 minutes.
Regarding scanning we will ask Linkon Da or Tulika.
Wish you a profitable trade.

Hi,

Minitrader,

Thanks a lot. Very educative. This detailed write up will make a good reference record for newbies like me.

I am grateful to you for taking out time from your tight schedule for the clarification of my query.

Regards,

CNB

 

[linkon7]

Hi,

Tulika/Linkon7/Minitrader/Seniors,

Today(27\07\09) I scanned Ichi... for buy/sell signals. Got some 217 signals. 90% of it are the buy signals. Almost all are inside/above/bellow the green cloud -'the bullish cloud'! :thumb:
Now how to select the best equity among so many buy signals by observing the chart? Shall I choose the one above the cloud? or below the cloud? I read somewhere in the information that trading in-side the cloud might be risky. Please help me "Linkon Da".

Tulika will you please help in such a situation what to do? I think your above posting to couple other indicators such as ADX and RSI will be a great help? will you please explain a strategy and parameters for ADX and RSI in detail?
Your guidance has become very important here now. Awating for your valuable replay.

Senior Please help.

Thanks in advance.

Regards.

CNB

Ichi is a visual tool. not good for scan. If you want to scan for a stock in a good uptrend, scan for stock that has its rsi-21 above 50, adx is above 30 and rising, macd is greater than the signal line. Now observe the stock that the scan throw up in ichi and see if it is trading above the cloud. Then just buy with a stop loss at the kujoun line...
select 5 stocks, 2 might hit sL but the other 3 will give good profit. EOD, you'll be smiling...

 

[sibumajumdar]

This morning learned something precious both from LINKON & MINDTREE. Many many thanks to both. I dont have access to ICHI but its worth learning & mental note for future. Thanks again.....SM

Correction: Minitrader, sorry to misspel your name. Thanks

 

[cnbondre]

Ichi is a visual tool. not good for scan. If you want to scan for a stock in a good uptrend, scan for stock that has its rsi-21 above 50, adx is above 30 and rising, macd is greater than the signal line. Now observe the stock that the scan throw up in ichi and see if it is trading above the cloud. Then just buy with a stop loss at the kujoun line...
select 5 stocks, 2 might hit sL but the other 3 will give good profit. EOD, you'll be smiling...

Hi,

Linkon Da,

Thanks a lot for your valuable guidence. You have explained it with clarity.

Regards,

CNB

 

[tulika]

Hi,

Tulika,

Your every posting adds something new! :thumb:

Thanks for sharing your knowledge. May I request you to explain your concept of coupling RSI/ADX with ichi.. by posting some charts for the beginners like me? Will be a great help to this thread and a very good long lasting record on the subject.

Regards,

CNB

Sorry for not being able to reply. But Linkon has already explained the use of RSI and ADX . ADX works best on longer time frames... it can save us from many whipsaws. When ADX is trending and moving up from below, we can use trend lines, moving avrgs etc to exit. and wen it becomes flat after we have taken entry, RSI , stochastics or MACD can be used for exit.... it is important to use right indicator at the right time...and ADX helps us to pick the right indicator. For shorter time frames, i use RSI 21. and for longer time frames i reduce it to 9 and even 7.

Tulika

 

[cnbondre]

Sorry for not being able to reply. But Linkon has already explained the use of RSI and ADX . ADX works best on longer time frames... it can save us from many whipsaws. When ADX is trending and moving up from below, we can use trend lines, moving avrgs etc to exit. and wen it becomes flat after we have taken entry, RSI , stochastics or MACD can be used for exit.... it is important to use right indicator at the right time...and ADX helps us to pick the right indicator. For shorter time frames, i use RSI 21. and for longer time frames i reduce it to 9 and even 7.

Tulika

HI,

tulika,

Thanks a lot. Any comments from experts like you, Linkon da, or Minitrader is like a feast to newbies!

Now there is enough material on the subject to start for anybody for a profitable trade.

I am grateful to all of you for your generousity.

CNB

 

[gvdevan]

Kenneth,

Thanks for the link ... it is more usefull ...

Vasu.

Ichimoku Kinko Hyo Reference

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For those who wish to learn more about ichimoku kinko hyo charting system, here are some of good reference:
Ichimoku Kinko Hyo Reference

http://www.4shared.com/file/76937167/c6bf5e5/Ichiwiki.html

http://www.4shared.com/file/76937141/d73e3252/Ichimoku__Heiken_Ashi.html

http://www.4shared.com/file/76937192/fb991da5/KIJUN_sen_cross_strategy.html

http://www.4shared.com/file/76936916/82826569/An_Introduction_to_Ichimoku_By_Leson.html


Happy Trading.

 

[ghosh_ak34]

Dear Friends,

Good thread by Linkon. Great job, well done!!!

Nice to see good participations from all.

My two cents.

One can also use ADX = 40 for an entry and W%R = 14 for exit. When ADX (Red or Green) goes up and become flat then its time to use W%R = 14 to take a call for an exit or hold. Can be used along with ichimoku.

Regards

 

[linkon7]

My two cents.

One can also use ADX = 40 for an entry and W%R = 14 for exit. When ADX (Red or Green) goes up and become flat then its time to use W%R = 14 to take a call for an exit or hold. Can be used along with ichimoku.

Regards

Ghosh,
what parameters of adx and W%R would you recommend....

adx (9) > 40 or adx (14) > 40.
w%r (14)

I use ichi and fabonachi ema for confirming each other...Ichi is good at telling me when to stay out...

 

[ghosh_ak34]

Ghosh,
what parameters of adx and W%R would you recommend....

adx (9) > 40 or adx (14) > 40.
w%r (14)

I use ichi and fabonachi ema for confirming each other...Ichi is good at telling me when to stay out...

Dear Linkon7,

Will go long when ichimoku says enter with ADX or +DI above -DI and will go short when ichimoku says sell with ADX or -DI above + DI.

I prefer to use ADX with period=40 and W%R with period = 14 to decide to hold or make an exit. Watch W%R above 50 and exit when its nearing 80 if your long and watch W%R below 50 and exit when its nearing 20. if short.

Above could be used once you have already made an entry using ichimoku.

When decided to hold then buy AT money or near money option to hedge the positions.

Regards