Monday, May 2, 2016

Ichimoku System for Trading on Forex

I am currently a new trader learning to trade with the Ichimoku system. Ichimoku means 'one glance', and it's a set of moving averages to provide instant information about a chart's history and direction it will head.

Concepts in Ichimoku:



Kijun sen - ( Highest High + Lowest Low of last 26 periods ) / 2  [GREEN LINE]

Tenkan sen - (Highest High + Lowest Low of last 9 periods ) / 2  [RED LINE]

Senkou A  -  (Kijun + Tenkan ) / 2  projected 52 periods forward  [WHITE LINE]

Senkou B -  ( Highest High + Lowest Low of Last 52 ) / 2 projected 52 periods forward [YELLOW LINE ]

Kumo - Cloud area shaded between Senkou A and Senkou B.

Chikou Span - The current price 26 periods behind. [PURPLE LINE]


Sentiments:
BULLISH when : Tenkan sen on top of Kijun sen
Cloud setup with Senkou B below Senkou A

BEARISH when: Kijun sen on top of Tenkan sen


Trading Triggers: Price breakout of the cloud. [Kumo Breakout]. Trade signals when Kumo Breakout when price exits the Cloud above for a long or below for a short.
Tenkan sen Kijun sen cross over is a trading signal. Weak when under a bullish cloud. Neutral in the cloud. Strong above a bullish cloud. If bearish crossover, strong under the bearish cloud and weak above a bearish cloud. Neutral in all cloud setups.
Chikou span signal: above price for bullish, below price for bearish. Touching a candlestick makes a neutral signal.

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