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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