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Ichimoku Target Price Theory V, N, E and NT CalculationsTHE BASICS: Here is a close up of the Ichimoku Kinkō Hyō indicator: Many people do not know that the Ichimoku Kinkō Hyō cloud system has its own Number, Wave, Target Price and Timespan Theories. After years of study, the numbers that Goichi Hosoda choose for his system are 9, 17, 26 as the basic numbers with 33, 42, 65, 76, 129 and 200~257. These numbers are used in the timespan as well as on the indicator itself. 9 is used for the Conversion Line (Tenkan Sen) 26 is used for the Base Line (Kijun Sen) 26 is also used for the Lagging Span (Chikou Span) and is used to shift the current price back 26 periods. The Lagging Span (Chikou Span) is an exceptional part of the system and allows you to see possible support and resistance levels without drawing any lines. The Leading Span A (Senkou Span A) is calculated using the Conversion Line (Tenkan Sen) and Base Line (Kijun Sen) values and is then plotted 26 periods into the future and shows potential future support and resistance levels. The Leading Span B (Senkou Span B) is calculated using double of 26 so 52 periods and is then and is then plotted 26 periods into the future. This also shows potential future support and resistance levels. Note that: The Area ABOVE the cloud is called the BULLISH ZONE. The Area BELOW the cloud is called the BEARISH ZONE. The Area IN BETWEEN the Leading Span A (Senkou Span A) and Leading Span B (Senkou Span B) levels is called the EQUILIBRIUM ZONE. Note that the Conversion Line (Tenkan Sen) and Base Line (Kijun Sen) ARE NOT MOVING AVERAGES but are instead calculated high and low midpoints of the price. So the Conversion Line (Tenkan Sen) is high and low calculated midpoint for the last 9 Periods (short-term) and the Base Line (Kijun Sen) is high and low calculated midpoint for the last 26 Periods (mid-term). THE ADVANCED: Ichimoku Kinkō Hyō Target Price Theory with examples: How accurate is Goichi Hosoda’s Target Price Theory? Using the history of the DJI/USD chart….. it turns out the calculation are very accurate. Note that i have added in timespans from Hosoda’s numbers to see if there is a day of change on the Ichimoku numbers 9, 17, 26, 33, 42, 65, 76, 129 and 200~257. Note that you can be flexible with these numbers so if a day of change is 8 days instead of 9 or 77 days instead of 76 then that is fine with this system. Ichimoku System has 4 Price Target Calculations called V, N, E and NT. A few of these we will see below. As you’ll see below, the calculations do change if they are POSITIVE or NEGATIVE. If we look at the Positive N Calculation from the Monday 3rd August 1896 until Monday 6th sept 1897 we can see that it was spot on. N Calculation positive N = C + (B-A) = D (B) $32.55 - (A) $20.77 = $11.79 (C) $27.79 + (B-A) $11.78 = (D) $39.57 The actual price it went to was $40.41 If we look at the above Negative V Calculation from the Monday 29th Sept 1929 until Monday 5th sept 1931 we can see that again, the calculation was spot on. V Calculation Negative V = B - (C-B) = D (C) $302 - (B) $194 = $108 (B) $194 - (C-B) $108 = (D) $86 The actual price it went to was $85.76 and continued to $40.72 If we look at this Negative N Calculation from the Monday 9th November 1931 until Monday 30th May 1932 we can see that again, it was almost spot on. N Calculation Negative N = C - (A-B) = D (A) $118.86 - (B) $69.85 = $48.75 (C) $89.87 - (C-B) $48.75 = (D) $41.12 Actual = $43.52 and continued to $40.72 If we look at the Positive V Calculation from Monday 4th July 1932 until Monday 17th July 1933 we can see that again, it was almost spot on. V Calculation Positive V = B + (B-C) = D (B) $81.63 - (C) $48.81 = $32.82 (B) $81.63 + (C-B) $32.82 = (D) $114.45 Actual = $110.90 If we look at the Negative V Calculation from Monday 4th Nov 1940 until Monday 13th April 1942 we can see that again, it was almost spot on. V Calculation Negative V = B - (C-B) = D (C) $131 - (B) $114 = $17 (B) $114 - (C-B) $17 = (D) $97 Actual = $92.60 If we look at the Positive NT Calculation from Monday 23rd March 2020 until Monday 10th May 2021 we can see that again, it was spot on. NT Calculation Positive NT = C + (C-A) (C) $26,114 - (A) $18,217 = $7,897 (C) $26,114 + (C-A) $7,897 = $34,011 Actually price went up to $36,971 which was until Monday 3rd Jan 2022. If we look at the Negative V Calculation from Monday 12th Dec 2022 until Monday 13th March 2023 we can see that again, it was close but off from about $600 but still would’ve made a profit. V Calculation Negative V = B - (C-B) = D (C) $34,344 - (B) $32,582 = $1,762 (B) $32,582 - (C-B) $1,762 = (D) $30,820 Actual price went to = $31,428 I have done these examples on the 1 week chart but this system also work for lower timeframes. I could go through and add much more calculations but i think you get the point with just these few. I hope this post has been helpful and insightful. For those interested, below are 2 links to my previous post about Ichimoku Kinkō Hyō that you may find helpful. Ichimoku Wave Theory: Ichimoku Crypto:
TVC:DJIEducation
by entertheroach
2
Tricks of Ichimoku clouds. Hi. I was making a comment in someone else's idea about the Ichimoku indication and thought one point should be dealt with more. So, let's assume something are in a down-trend, candles are flying down from cliff, to the left of Kijun-sen and Tenkan-sen. We can see this on chart 1. At some point the drop reaches some kind of resistance and starts some lateral movement of larger or smaller amplitude. Kijun and Tenkan are beginning to squeeze each other, traders are waiting for the long-awaited (after so many months!) of a golden cross, but something else is happening. A cross occurs, but it looks like it is not Kijun-sen piercing Tenkan-sen from below, but vice versa Tenkan sen approaching Kijun has taken and fallen into this line and is looking down. So... Let's remember what the textbook golden cross looks like on Ichimoku? I believe what is shown on screen 2 is exactly that golden cross. Kijun come over in from below Tenkan-sen, and shot through the line. The Tenkan-Sen did not change its horizontal position in this process. Then it is required to see if there are situations, when a golden cross should form, but in fact Tenkan-sen is falling down to the Kijun and the movement is going downward still, and one more cross is formed soon. Voila, the summer 2021 chart of Etherium. This is exactly the situation. Conclusion: Not every Kijun/Tenkan line cross after the big red Kumo cloud is a golden cross. I encourage @norok as a trader whom I have great respect for his work, to comment on these aspects.
BITSTAMP:BTCUSDEducation
by averkie_skila
Ichimoku Kinkō Hyō Wave Theory Introduction and Indicator BasicsIchimoku Kinkō Hyō Wave Theory Introduction and Indicator Basics Cheat Sheet. Note that there are 5 Waves in the Ichimoku Kinkō Hyō System. 1: I Wave 2: V Wave 3: N Wave 4: P Wave 5: Y Wave I Wave = 1 directional movement in price up or down over a period of time. V Wave = 2 directional movements in price over a period of time so 1 direction movement up over a period of time and 1 directional movement down over a period of time. Or 1 directional movement down over a period of time and 1 directional movement up over a period of time. Note that a V Wave is made from 2 I Waves. N Wave = 3 movements in price over a period of time so 1 price movement up over a period of time, 1 shorter price movement down over a period of time and 1 longer price movement back up over a period of time. Or 1 price movement down over a period of time, 1 shorter price movement up over a period of time and 1 longer price movement back down over a period of time. Note that an N Wave is made from 3 I Waves. P Wave = 2 Converging trend-lines. The P Wave is similar to the Bullish/Bearish Pennant but note that with the Ichimoku P Wave it does not matter the amount of times that the price hits the upper and lower trend-lines. Y Wave = 2 Diverging trend-lines. The Y Wave is similar to the Bullish/Bearish Inverted Triangle Pattern or Megaphone Pattern but note that with the Ichimoku Y Wave it does not matter the amount of times that the price hits the upper and lower trend-lines. Please look at the above chart if this all sounds a little confusing and it will all become clear. For those interested, the 3 basic and most important Waves I, V and N are used in Ichimoku Price Theory for both Negative and Positive price directions. V Calculation: V = B + (B-C) for Positive and V = B - (C-B) for Negative. N Calculation: N = C + (B-A) for Positive and N = C - (A-B) for Negative. E Calculation: E = B + (B-A) for Positive and E = B - (A-B) for Negative. NT Calculation: NT = C + (C-A) for Positive and NT = C - (A-C) for Negative. Here is a post with some examples of the Ichimoku Price Theory in action. Back to Basics for those who are new to The Ichimoku Kinkō Hyō. Note that i’ll be using the original Ichimoku settings 9,26,52,26 in this write up but not on the actual chart. The Ichimoku Cloud is comprised of 5 indicators, The Conversion Line (Tenkan Sen), The Base Line (Kijun Sen), The Leading Span A (Senkou Span A), The Leading Span B (Senkou Span B) and the The Lagging Span (Chikou Span) with 3 areas of interest, the Bullish Zone, The Bearish Zone and the Equilibrium Zone. The Conversion Line (Tenkan Sen) is the midpoint of the last 9 Period highs and 9 Period lows in whatever timeframe you are in. As well as being a potential support or resistance level, the Conversion Line (Tenkan Sen) also gives you a sense of potential short-term price momentum in whatever timeframe you are in as well as potential reversals. So if the Conversion Line (Tenkan Sen) is pointing either upwards, sideways or downwards, then this gives you a sense of what the short-term price momentum is in whatever timeframe you are in. Note that the Tenkan Sen is not an SMA or EMA and should not be treated as such. The Base Line (Kijun Sen) is the midpoint of the last 26 Period highs and 26 Period lows in whatever timeframe you are in. As well as being a potential support or resistance level, the Base Line (Kijun Sen) also gives you sense of potential mid-term price momentum in whatever timeframe you are in as well as confirmation of a trend change if the Tenkan Sen crosses under the Kijun Sen. So if the Base Line (Tenkan Sen) is pointing either upwards, sideways or downwards, then this gives you a sense of what the mid-term price momentum is in whatever timeframe you are in. Note that the Kijun Sen is not an SMA or EMA and should not be treated as such. The Lagging Span (Chikou Span) is a momentum indicator and also a 2nd confirmation indicator that enables you to see potential trend changes. The Lagging Span (Chikou Span) is the current price shifted 26 periods in the past. If the Lagging Span (Chikou Span) indicator is above where the price was at 26 periods ago then that is considered an uptrend for the timeframe you are in. If the Lagging Span (Chikou Span) indicator is below where the price was at 26 periods ago then that is considered a downtrend for the timeframe you are in. A Bullish and Bearish confirmation signal can be seen if the Lagging Span (Chikou Span) indicator crosses up (Bullish) or under (Bearish) for that previous 26 period price respectively, but also using the other indicators as confirmation. If the Lagging Span (Chikou Span) is inside the previous Price from 26 Periods ago, then that is considered sideways trading, choppy or trend-less. The Leading Span A (Senkou Span A) is a Leading momentum indicator and is calculated from the Conversion and Base Line values. Note that the Leading Span A (Senkou Span A) is plotted 26 Period into the future and identifies future areas of support and resistance. The Leading Span B (Senkou Span B) is calculated using double the periods of 26 so 52 Periods and is again plotted 26 Periods into the future and also identifies future areas of support and resistance. The Leading Span A (Senkou Span A) & Leading Span B (Senkou Span B) make up the Cloud (Kumo). If the Cloud (Kumo) is green, that indicates we are potentially in a Bullish Trend for that timeframe. If the Cloud (Kumo) is red, that indicates we are potentially in a Bearish Trend for that timeframe. The area above the cloud is the Bullish Zone & the area below the cloud is the Bearish Zone. The area Inside of the cloud is the Equilibrium Zone, which can be seen as trend-less, uncertainty or trading sideways. A key move to look out for is if the Leading Spans A,B are Crossing/Twisting from either a green cloud into a red cloud or vice versa to indicate a trend reversal for the timeframe you are in. Note the Cloud (Kumo) can be Red or Green while the price action is in the Equilibrium Zone depending on if it dipped down or up into the Cloud (Kumo). Note that because we dip downwards outside of the Cloud (Kumo) that doesn’t mean the Cloud will turn red because we may rebound before the Leading Span A (Senkou Span A) gets a chance to cross Leading Span B (Senkou Span B) and vice versa. If the Cloud (Kumo) is thin pointing upwards or downwards then this is a good sign of momentum. When the Cloud (Kumo) starts getting wider, that means momentum is slowing down. An important thing to note is that the Conversion Line (Tenkan Sen) & Base Line (Kijun Sen) are not SMA’s or EMA’s they are X amount high/low calculated period midpoints, so they should not be used as SMA or EMAs. I hope this basic quick introduction is helpful with your trading and hodl-ing.
BITSTAMP:BTCUSDEducation
by entertheroach
5
S&P500 Index - Multi timeframe analysis with the Ichimoku CloudMulti timeframe analysis of the S&P500 Index using the Ichimoku Kinko Hyo with original 9,26,52,26 settings, i have also added Volume Profiles (VPVR) and (VPFR) onto the charts. 1 DAY CHART: The Ichimoku Cloud Conversion Line (Tenkan Sen) is indicating that the Mid-Point of the Short-term momentum is upwards at the moment. This will possibly change to sideways or even downwards on the open of the next daily candle. The Ichimoku Cloud Base Line (Kijun Sen) is indicating that the Mid-Point of the Mid-term momentum is sideways at the moment. Note that support at the Base Line (Kijun Sen) has failed on this 1 day timeframe. The Ichinoku Cloud Lagging Span (Chikou Span) is indicating that momentum at the moment…… is downwards. Note that the Lagging Span (Chikou Span) is still under the price from 26 periods ago and is i the Bearish Zone under the Kumo (Cloud). The Kumo (Cloud) is still red. Note that the Leading Span A (Senkou Span A) has started to move upwards but will swing back down if the price continues to drop. Note that the Leading Span A (Senkou Span A) is still under the Leading Span B (Senkou Span B). Be on the lookout for if/when the Leading Span B (Senkou Span B) starts to move downwards on this 1 day timeframe indicating further strength to the downside. Note that the price is still in the Bearish Zone under the Kumo (Cloud) on this 1 day timeframe. Note that on this 1 day timeframe, the Price is under all of the Ichimoku Cloud indicators so let’s have a look at the 1 week timeframe and see if we have any Ichimoku support levels. Volume Profiles: Note that the Price is still under its Volume Profile Visible Range Point of Control (VPVR POC) for this charts visible range. Not that the Price is still under its Volume Profile Fixed Range Point of Control (VPFR POC) for the fixed range of 14x daily candles i have selected. 1 WEEK CHART: The Ichimoku Cloud Conversion Line (Tenkan Sen) is indicating that the Mid-Point of the Short-term momentum is downwards at the moment. Note that the price has found some resistance from the Conversion Line (Tenkan Sen) on this 1 week timframe. The Ichimoku Cloud Base Line (Kijun Sen) is indicating that the Mid-Point of the Mid-term momentum is sideways at the moment. Note that the Conversion Line (Tenkan Sen) is still under the Base Line (Kijun Sen) indicating strength for short term downwards momentum. The Ichinoku Cloud Lagging Span (Chikou Span) is indicating that momentum at the moment…… is downwards. Note that the Lagging Span (Chikou Span) is still under the price from 26 periods ago. Note that the Lagging Span (Chikou Span) has dropped below the Leading Span A (Senkou Span A) and is now back in the Equilibrium Zone on this 1 week timeframe. The Kumo (Cloud) is still red on this 1 week timeframe. Note that the Leading Span A (Senkou Span A) has started to move downwards and is still under the Leading Span B (Senkou Span B). Note that the price is still in the Bearish Zone under the Kumo (Cloud) on this 1 week timeframe. Note that on this 1 week timeframe, the Price is under all of the Ichimoku Cloud indicators so let’s have a look at the 2 week timeframe and see if we have any Ichimoku support levels. Volume Profiles: Note that the Price is still under its Volume Profile Visible Range Point of Control (VPVR POC) for this charts visible range. Not that the Price is still under its Volume Profile Fixed Range Point of Control (VPFR POC) for the fixed range of 11x weekly candles i have selected. 2 WEEK CHART: The Ichimoku Cloud Conversion Line (Tenkan Sen) is indicating that the Mid-Point of the Short-term momentum is sideways at the moment. The Ichimoku Cloud Base Line (Kijun Sen) is indicating that the Mid-Point of the Mid-term momentum is sideways at the moment. Note that the Conversion Line (Tenkan Sen) is still under the Base Line (Kijun Sen) indicating strength for short term downwards momentum. The Ichimoku Cloud Lagging Span (Chikou Span) is indicating that momentum at the moment…… is downwards. Note that the Lagging Span (Chikou Span) is still under the price from 26 periods ago but is still in the Bullish Zone above the Kumo (Cloud). The Kumo (Cloud) is still green. Note that the Leading Span A (Senko Span A) is still above the Leading Span B (Senkou Span B). Note that the Leading Span A (Senkou Span A) is moving sideways at the moment but the Leading Span B (Senkou Span B) is moving upwards, be on the lookout for if the Leading Span A (Senkou Span A) starts to move closer towards the Leading Span B (Senkou Span B). Be on the lookout if the price drops below and closes below the Leading Span A (Senkou Span A) into the Equilibrium Zone on this 2 week timeframe. Note that the price is still in the Bullish Zone above the Kumo (Cloud) on this 2 week timeframe. Note that on this 2 week timeframe, the Price is under the Conversion Line (Tenkan Sen) and Base Line (Kijun Sen) but still has the Leading Span A (Senkou Span A) and Leading Span B (Senkou Span B) as potential support levels. Let’s have a look at the 1 month timeframe and see if we have anymore Ichimoku support levels. Volume Profiles: Note that the Price is still under its Volume Profile Visible Range Point of Control (VPVR POC) for this charts visible range. Not that the Price is still under its Volume Profile Fixed Range Point of Control (VPFR POC) for the fixed range of 6x 2 weekly candles i have selected. 1 MONTH CHART: The Ichimoku Cloud Conversion Line (Tenkan Sen) is indicating that the Mid-Point of the Short-term momentum is sideways at the moment. The Ichimoku Cloud Base Line (Kijun Sen) is indicating that the Mid-Point of the Mid-term momentum is upwards at the moment. Note that the Conversion Line (Tenkan Sen) is still above the Base Line (Kijun Sen) indicating strength for short term sideways momentum as the indicator is moving sideways at the moment. The Ichinoku Cloud Lagging Span (Chikou Span) is indicating that momentum at the moment…… is downwards. Note that the Lagging Span (Chikou Span) is still above the price from 26 periods ago and is still in the Bullish Zone. The Kumo (Cloud) is still green. Note that the Leading Span A (Senkou Span A) has started to move upwards but may swing back down if the price continues to drop on this 1 month timeframe. Note that the Leading Span A (Senko Span A) is still above the Leading Span B (Senkou Span B). Be on the lookout for if the Leading Span A (Senkou Span A) starts to move closer towards the Leading Span B (Senkou Span B). Note that the price is still in the Bullish Zone above the Kumo (Cloud) on this 1 month timeframe. Note that on this 1 month timeframe, the Price is under the Conversion Line (Tenkan Sen) but still has the Base Line (Kijun Sen) Leading Span A (Senkou Span A) and Leading Span B (Senkou Span B) as potential support levels. Volume Profiles: Note that the Price is still above its Volume Profile Visible Range Point of Control (VPVR POC) for this charts visible range. Not that the Price is still under its Volume Profile Fixed Range Point of Control (VPFR POC) for the fixed range of 6x monthly candles i have selected. Notes: Please remember that the Conversion Line (Tenkan Sen) & Base Line (Kijun Sen) are not SMAs or EMAs they are X amount high/low period midpoints in whatever timeframe you are in, so they should not be used as SMA or EMAs. Note that there are other aspects to the Ichimoku Cloud which make it a very complete system such as Price Theory, Wave Theory and Time Theory but I won’t go into those on this post. Conversion Line (Tenkan Sen) = Highest High + Highest Low calculation over 9 Periods = Blue Line. Base Line (Kijun Sen) = Highest High + Highest Low calculation over 26 Periods = Red Line. Lagging Span (Chikou Span) = Today’s price displaced back 26 Periods = Green Line. Leading Span A (Senkou Span A) = Tenkan Sen and Kijun Sen calculation value displaced ahead 26 Periods = Cloud Green Line. Leading Span B (Senkou Span B) = Highest High + Highest Low over 52 Periods Value displaced ahead 26 Periods = Cloud Red Line. Bullish Zone = Above the Cloud. Equilibrium Zone = Inside the (Kumo) Cloud can be Green or Red. Bearish Zone = Below the Cloud. This was just a post to show how you can use the Ichimoku Kinko Hyo in multiple timeframes for support, resistance & momentum, so I hope this post has been helpful with your trading and understanding of the Ichimoku Cloud. So in which direction is the S&P500 Index going to go...... i leave up to you to make your own minds up ;-).
SP:SPXEducation
by entertheroach
The Ichimoku Cloud (Ichimoku Kinko Hyo) - WTF is itSo, the Ichimoku Cloud (Ichimoku Kinko Hyo) - WTF is it??? At first the Ichimoku Cloud can look a bit daunting, but after reading this, hopefully it will put you at ease & you will realise that it is a really neat and powerful indicator that shows you Momentum, Trend, Support and Resistance . Note that you can use the Ichimoku Cloud for all timeframes, but it may not work on monthly or yearly charts if there is not enough previous data. The Ichimoku Cloud ( Ichimoku Kinko Hyo) is made up of 5 indicators, The Conversion Line (Tenkan Sen), The Base Line (Kijun Sen), Leading Span A (Senkou Span A), Leading Span B (Senkou Span B) and the Lagging Span (Chikou Span). On TradingView the default settings for the Ichimoku Cloud are: Conversion Line Periods = 9 The Base Line Line Periods = 26 Lagging Span 2 Periods = 52: Is actually the Leading Span B Displacement = 26: Is actually the Lagging Span For the Crypto market, these default settings are no good and we need to adjust the settings because Crypto is 24hrs a day, 7days a week, 365 days a year. Crypto never closes “unless an exchange or broker gets worried” 😜. Using the TradingView’s system, the Crypto settings need to be changed to: Conversion Line Periods = 20 The Base Line Line Periods = 60 Lagging Span 2 Periods = 120: Is actually the Leading Span B Displacement = 30: Is actually the Lagging Span Some people have posted online saying the displacement should be 60 for Crypto, but that is incorrect. 60 gives too much distance from the Cloud (Kumo) and you cannot get accurate readings for Resistance and Support, so 30 is perfect for Crypto needs. Using the Crypto Settings, The Conversion Line (Tenkan Sen) is a Midpoint of the previous 20 Period Highs and 20 Period Lows. The Base Line (Kijun Sen) is a Midpoint of the previous 60 Period Highs and 60 Period Lows. So they are not SMAs or EMAs. What is neat is that if you change timeframes then you will get the 20 & 60 Period Midpoints for whatever timeframe you are in, so it is a very useful tool to see if there is a possible cascade effect happening on lower timeframes that may cascade on to higher timeframes. If the Conversion Line (Tenkan Sen) crosses under the Base Line (Kijun Sen), that is a Sell Signal or varying strength depending on where it crosses in relation to the rest of the Ichimoku Cloud Indicator. If the Base Line (Kijun Sen) crosses back under the Conversion Line (Tenkan Sen), then that is considered a buy signal of varying strength depending on where it crosses in relation to the rest of the Ichimoku Cloud Indicator. The Conversion Line (Tenkan Sen) & The Base Line (Kijun Sen) can act as potential Support and Resistance depending on if the current price is above or below either of the indicator lines. Leading Span A ( Senkou Span A) is a Leading momentum indicator and is already calculated from the Conversion and Base Line values, hence why you only need to add a value for Leading Span B (Senkou Span B) which is 120. The Leading Span B (Senkou Span B) uses double the periods so it will react slower compared to Leading Span A (Senkou Span A). The gap between Leading Span A (Senkou Span A) & Leading Span B (Senkou Span B) is the Cloud (Kumo). If the Cloud (Kumo) is green, that indicates we are in a Bullish Trend for that timeframe. If the Cloud (Kumo) is red, that indicates we are in a Bearish Trend for that timeframe. The area above the cloud is the Bullish Zone & the area below the cloud is the Bearish Zone. Inside the cloud is the Equilibrium Zone, which can be seen as trend-less, uncertainty or trading sideways. A key move to look out for is if the Leading Spans A,B are Crossing/Twisting from either a green cloud into a red cloud or vice versa to indicate a trend reversal. Note the Cloud (Kumo) can be Red or Green while the price action is in the Equilibrium Zone depending on if it dipped down or up into the Cloud (Kumo). Note that because we dip downwards outside of the Cloud (Kumo) that doesn’t mean the Cloud will turn red because we may rebound before the Leading Span A (Senkou Span A) gets a chance to cross Leading Span B (Senkou Span B) and vice versa. If the Cloud (Kumo) is thin then this is a good sign of momentum, when the Cloud (Kumo) starts getting wider, that means momentum is slowing down. The Leading Span A (Senkou Span A) & the Leading Span B (Senkou Span B) can act as potential Support and Resistance depending on if the Price is above or below the Cloud (Kumo), or in the Equilibrium Zone. Note that the Leading Span A (Senkou Span A) & Leading Span B (Senkou Span B) are plotted 30 Periods ahead of the current price. The Lagging Span (Chikou Span) is a momentum and a 2nd confirmation indicator that enables you to see potential trend changes. Using the Crypto settings, the Lagging Span (Chikou Span) is calculated by shifting the indicator 30 periods behind the last closing price. If the Lagging Span (Chikou Span) indicator is above where the price was at 30 periods ago then that is considered an uptrend for the timeframe you are in. If the Lagging Span (Chikou Span) indicator is below where the price was at 30 periods ago then that is considered a downtrend for the timeframe you are in. A Bullish and Bearish confirmation signal can be seen if the Lagging Span (Chikou Span) indicator crosses up or under that previous 30 period price respectively, but also using the other indicators as conformation. If the Lagging Span (Chikou Span) is inside the previous Price from 30 Periods ago, then that is considered sideways trading, choppy or trend-less. The Ichimoku Cloud (Ichimoku Kinko Hyo) is designed to be used as a whole and each of the indicators complement one another. It’s best practice to use it with other indicators like, Volume , RSI , VPVR, MACD , ADX or the SMI. This is my first educational post on TradingView, so i'd thought id keep it brief. I’ll update and go into the different confirmation buy/sell levels, and more on each of the indicators at a later date. I hope you have found this educational post helpful 🙏 In fact, reading this thing back, its not really that brief is it 😅👍
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BINANCE:ADAUSDEducation
by entertheroach
85