Ichimoku-real good thing but i disliked it

#1
Hi friends
I saw Ichimoku system many times. with those lines running cross the chart and with those colored clouds it never made much sense to me.

I confess I was wrong.
Reason -No good guidance or no right kind of hints came my way.I NEVER GOT IT.

Recently I was sent a video presentation of Hubert Senters,a protrader, by a trading buddy.
Though reluctant,I said-let me take a fresh look at it impartially.
And this outlook saved me .
I realised what power ICHIMOKU is having for doing successful trading.

I tried two day trades and both turned out success.

Thank God for making me see the power.
ICHIMOKU ANSWERS THE QUESTION
What is current trend?
you get right answer.


As I always say,the purpose of the post by me is to provoke independent thinking and create a new awakening of interest to overcome trading problems.

First let me share some summary.
1.ICHIMOKU can be used on any timeframe.
If you choose a 5minute or 10 minute chart,the trend moves that occur normally last for 4 hours.
Intraday scalpers can use this info.
After this much time the trend gets exhausted and price goes into sideways or counter trend. so continuing in the same direction results in losses because of trader inertia.
swing traders
IF you chose 60 minute timeframe chart,the trend move that follows can last upto 3 days length. swing traders can utilise this info.

2.About ICHIMOKU

The clouds are support or resistance zones.
price goes near by and bounces off.
at times price crosses thru the clouds breaking out.
IF THE PRICE GOES ABOVE THE CLOUD,IT MEANS A LONG TRADE IS READY TO SET UP.
If the price goes below the cloud,it means a short trade is about t set up.


LAGGING LINE-ALSO CALLED DELAYED LINE.

This is the first indication of incoming new trend.
This is a slow thing and powerful.
If the LAGGING LINE GOES ABOVE THE CLOUD, A LONG TRADE IS GETTING READY SOON.
After some time,price will follow-one must understand this advance indication and the lag with whichprice trend follows laggingline.
Without this understanding,without knowing the LAGGING LINE mistery,you cant use ICHIMOKU.

There are two other lines called standard line and turning line-these are secondary-to be seen later.

LONG TRADE
CONDITIONS
1)LAGGING LINE CROSSES ABOVE THE CLOUD
2)PRICE CANDLES GO ABOVE THE CLOUD.
NOW LONG TRADE IS SETTING UP.
ENTER LONG ON THE FRESH CROSS OF PRICE ABOVE CLOUD WITH CLOUD TOP AS STOPLOSS. SCALPERS USE 2-TO 3 POINTS AS RISK.
LONG EXIT WHEN PRICE STABILISES AND MAKES NO MORE HIGHER HIGHS AND DROPS TO CLOUD TOP.
TARGET IS BASED ON FIBONACCI OR MULTIPLES OF ATR(14) COUNTED FROM ENTRY.
-------------------------------------------------------------------
SHORT TRADE
CONDITIONS
1)LAGGING LINE CROSSES BELOW THE CLOUD
2)PRICE CANDLES GO BELOW THE CLOUD.
NOW SHORT TRADE IS SETTING UP.
ENTER SHORT ON THE FRESH CROSS OF PRICE BELOW CLOUD WITH CLOUD BOTTOM AS STOP LOSS. SCALPERS USE 2-TO 3 POINTS AS RISK.
SHORT EXIT WHEN PRICE STABILISES AND MAKES NO MORE LOWER LOWS AND RISES TO CLOUD BOTTOM.
TARGET IS BASED ON FIBONACCI OR MULTIPLES OF ATR(14) COUNTED DOWN FROM ENTRY.

watch these videos
not to buy anything.

http://www.youtube.com/watch?v=nGFV9BPFwn0
http://www.youtube.com/watch?v=iMgfu5JYfF0
The recent power presentation
http://www.youtube.com/watch?v=5yH8Wjss2fA#t=289

CAUTION
THIS POST is meant for traders who are not so busy and not so emotional but can spare some time as the videos take much time.
 
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#3
hi friends
I found out one interesting fact about ICHIMOKU.

It is the only such system which is not like any western system.
ICHIMOKU looks in the past,present and future.

Japanese did put lots of efforts to get it right.

ICHIMOKU WORKS WELL WITH CANDLESTICKS AS I heard.

The method was developed in 1930,about 83 years ago by GOICHI HOSODA

my Humble salutes to GOICHI HOSODA!!!!!!!!!
ichimoku works in trending markets best.

ONE GLANCE and you see what is status of the market

ASK yourself three questions when you see the chart
1.What is the LAGGING LINE DOING?
IS IT ABOVE THE CLOUD OR BELOW THE CLOUD? IF ABOVE THE CLOUD TREND IS UP
2.ASK YOURSELF WHAT IS THE PRICE DOING? IS IT ABOVE THE CLOUD R BELOW THE CLOUD? IF ABOVE,UPTREND IS PRESENT.
3.REMEMBER THE FIRST INDICATION OF TREND CHANGE IS COMING FROM LAGGING LINE AND AFTER A DELAY OF X BARS,PRICE DOES MIMIC-IMITATE ACTION OF LAGGING LINE.
4.CHECK IF STANDARD LINE IS FLAT OR SLOPING UP OR SLOPING DOWN?
IF FLAT THERE IS SIDEWAYS ACTION IN PRICE.
5.MOST IMPORTANT THING.
ONCE A TREND MOVE BEGINS IT LASTS FOR A CERTAIN TIME
FOR 10 MIN CHART TREND LASTS FOR 3-4 HOURS.
 

bjj9126

Active Member
#4
My little knowledge about ichimoku:

There are 5 components in Ichimoku:
1. Tenkan Sen
2. Kijun Sen
3. Chikou Span
4. Senkou Span A
5. Senkou Span B

** Kumo Cloud = Space between Senkou Span A and Senkou Span B

How to calculate these components :


1. Tenkan Sen : ( Highest High + Lowest Low ) / 2 for 9 periods

2. Kijun Sen : ( Highest High + Lowest Low ) / 2 for 26 periods

3. Chikou Span : Current Price Shifted back 26 periods

4. Senkou Span A : ( Tenkan Sen + Kijun Sen ) / 2 Shifted forward by 26 Period

5. Senkou Span B : ( Highest High + Lowest Low ) / 2 for 52 periods and then shifted forward by 26 periods

Basic Interpretation:
=========================================================
* Tenkan Sen represents the short term movements of price
* Kijun Sen represents the Medium term movements of price
* Chikou represents the momentum of price (very interesting component)

The Kumo Cloud : Most people misunderstand these two component..!!!
1. Senkou Span A represents half of the Kumo Cloud,One have to look two Senkou Span A,The current one and the future one,Current Senkou Span A is the average of Tenkan Sen and Kijun Sen From 26 periods ago..!! The future Senkou Span A is the average of current Tenkan Sen and Kijun Sen..!!
2. Senkou Span B represents half of the Kumo Cloud and it is also two same as Senkou Span A ....but most powerful 52..!!

=========================================================

You can create thousands of strategy using comparison with these powerful components

Salute To Developer The Great Japanes Goichi Hosoda....

bjj9126
 
#5
Hi
How to learn and apply the ichimoku strategy?
Hubert senters courses provide good strategy explanation.
stock charts has good explanation.

I will post the rule set soon.
-------------------------------------------------------------------------
If you are interested to trade with ichimoku
here are must things to do.
do at least 30 tests on past data bv bar replay.if happy do 100 tests. confirm the ruleset by this experience & not by hear say.
then do 30 tests on live charts. if happy do 100 tests. set the rules-write them down.
now you have licence to trade equities,not futures or options or mcx.these need more experience more testing more understanding.
please please apply only a tested verified strategy.
market is like mike tyson. you need to to go local gym,get some training before to go for fighting with tyson.
chances of your winning over tyson are 1:99. market is no different.
preparation is must.dont avoid it or dont bypass.
indicators move only after market moves not the other way round.
===========================================================================
LONG TRADE
CONDITIONS
1)LAGGING LINE CROSSES ABOVE THE CLOUD
2)PRICE CANDLES GO ABOVE THE CLOUD.
NOW LONG TRADE IS SETTING UP.
ENTER LONG ON THE FRESH CROSS OF PRICE ABOVE CLOUD WITH CLOUD TOP AS STOPLOSS. SCALPERS USE 2-TO 3 POINTS AS RISK.
LONG EXIT WHEN PRICE STABILISES AND MAKES NO MORE HIGHER HIGHS AND DROPS TO CLOUD TOP.
TARGET IS BASED ON FIBONACCI OR MULTIPLES OF ATR(14) COUNTED FROM ENTRY.
-------------------------------------------------------------------
SHORT TRADE
CONDITIONS
choose a timeframe based on your testing.
better TF are 10min,60min,daily.


1)LAGGING LINE CROSSES BELOW THE CLOUD
2)PRICE CANDLES GO BELOW THE CLOUD.
Filter1=wait for three 3 candles to close below the cloud,and only after that happens,go for the trade.
Filter2=make sure the T line(turning line) is under the S Line(base line)
Filter3=see if the cloud or T line are sloping up for a long trade or sloping down for a short trade
Filter4=Look at the distance or space between T Line & S-LINE and if space between is more and increasing-it means trend momentum is strong.If distance is very low,narrow then wait-for confirmation
apply these filters in opposite way for long trades.

NOW SHORT TRADE IS SETTING UP.
ENTER SHORT ON THE FRESH CROSS OF PRICE BELOW CLOUD WITH CLOUD BOTTOM AS STOP LOSS. SCALPERS USE 2-TO 3 POINTS AS RISK.
SHORT EXIT WHEN PRICE STABILISES AND MAKES NO MORE LOWER LOWS AND RISES TO CLOUD BOTTOM.
TARGET IS BASED ON FIBONACCI OR MULTIPLES OF ATR(14) COUNTED DOWN FROM ENTRY.




cheers
 
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#7
can you share the afl with buy sell arrow i use ichomoku cloud and in chinkou if you notice it will show the divergence and move up or down earlier then other divergence and will help you to find near the bottom or top to close your entry
and once the chinkou is crossed above or below the cloud will start the rally
please share your afl and we can improve this strategy with some momocount and parabolic breakout and use that as stop if reverse
 
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#9
hi friends
here is one afl for ichimoku

two rules
1 study & experiment
2.test on past and live data

then you can apply it on live trades
time required = minimum 90 days
n money to use before 90 days
---------------------
code by misha nathani

HTML:
/*
Formula Name: 	Ichimoku with Plot mofified to use cloud function
Author/Uploader: 	[B]Misha Nathani[/B] - (email hidden)
Date/Time added: 	2008-02-15 23:09:43
Origin: 	
Keywords: 	ichimoku cloud
Level: 	basic
Flags: 	indicator

DISCLAIMER: Most formulas present in AFL on-line library are submitted by the users AND are provided here on an "as is" AND "as available" basis. AmiBroker.com makes no representations OR warranties of any kind to the contents OR the operation of material presented here. We do NOT maintain nor provide technical support for 3rd party formulas.
Description:

This formula is the original Prakash Senoi formula with the Plot function modified to use the new cloud funtion. The cloud as green shows uptrend support, AND as red shows resistance above downtrend.
I haven't worked out how to allow plotting of the cloud out ahead of today, as is done in a number of implementations. Any ideas?
Formula:
*/

/* ICHIMOKU CHART */

/* AFL code by Prakash Shenoi */
//Plot function modified Misha Nathani

SL=(HHV(H,26)+LLV(L,26))/2;
TL=(HHV(H,9)+LLV(L,9))/2;
DL=Ref(C,25);
Sp1=Ref((SL+TL)/2,-25);
Sp2=Ref((HHV(H,52)+LLV(L,52))/2,-25);

//Plot(C,"Bars",colorBlack,styleBar);
Plot(C,"Bars",colorBlack,styleCandle);

Plot (SL,"Standard",colorGreen);
Plot (TL,"Turning",colorRed);
Plot (C,"Close",colorBlack,styleThick);
Plot (DL,"Delayed",colorBlue,styleThick);
PlotOHLC (Sp1,Sp1,Sp2,Sp2,"Cloud",IIf
(Sp1>Sp2,colorSeaGreen,colorDarkRed),styleCloud);
 
#10
 

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