Ichimoku gives me a look at current situation.
Bollinger Bands MACD Ichimoku.
My head is in the Ichimoku cloud.
It may be tough for someone new in Ichimoku.
So in that case Ichimoku is like a background, but important one.
However, in our Ichimoku example(Figure 3), the cloud serves as an excellent filter.
The problem is that Ichimoku is rather complex(we have signals from Kijun, cloud etc.).
As a professional trader, I specialize in trading Price Action and the Ichimoku cloud.
I traded witch Ichimoku for a long time(I started my trading career with it).
This is what most traders think when they first come across the Ichimoku Cloud indicator.
The Ichimoku cloud is former support
and resistance levels combined to create a dynamic support and resistance area.
In this Ichimoku Clouds trading strategy we will enter the market when the
price breaks out of the Cloud.
For further definitions of what is being discussed, please refer to this previous post on Ichimoku cloud charts.
Sometimes Ichimoku can be too slow
or you can have mixed picture of the current situation in the market.
The following explanation regarding the structure
of each line will move you closer towards understanding how the Ichimoku is constructed.
An Ichimoku Cloud is an indicator that defines support and resistance areas,
identifies trend direction, gauges momentum and provides trading signals.
My head is in the Ichimoku cloud, dreaming about the future of the romantic candles
dancing at a Euro-American forex party.
The full name of Mr. Ichimoku is actually Ichimoku Kinko Hyo,
which can be translated as“a glance at a chart in balance.”.
However, this does not mean that the Ichimoku Kinko Hyo indicator is the best
or that technical indicators as a whole are useless.
Even though the Ichimoku Cloud may seem complicated when
viewed on the price chart, it is really a straightforward indicator that is very usable.
Your eyes are going to get used
to this, and after one day you will feel that a chart without Ichimoku is totally naked.
Read page 6 of our Ichimoku Trading Guide to learn how incorporate this unique indicator into your
trading strategy, whether you're a day or swing trader.
When the candles are inside the Ichimoku cloud, that means that the market is in the process of consolidating,
and it is not a good time to buy or sell.
Ichimoku Kinko Hyo indicator-
used to gauge momentum along with future areas of support and resistance. The Ichimoku indicator is comprised of five lines called the tenkan-sen, kijun-sen, senkou span A, senkou span B and chickou span.