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Ichimokukinkohyo

EURUSD Div Invalidated, Alternate tagged perfectlyOn July 2nd I put out a video, discussing being "Stuck in the middle", and mentioning the Bearish Monthly Ichi structure. I admittedly was thinking EURUSD would be Bearish for the week, but I did mention where I'd be invalidated; A break above the descending Daily Forecast Line. We did just that, broke the Daily Forecast, and proceeded to move to 1.112 and more, which was my anticipated alternate target. In this video, I show out next anticipated levels above, using Ichi Forecast Lines, as well as Ichi Wave Theory.. and the invalidation areas to the downside, should the market choose lower, versus higher. As always, good luck, have fun, and practice solid risk mgmt. P.S. -- When mentioning the Divergence, I say "Lows", when I meant "Highs"... so forgive me for that confusion.
Long
by mrjones2020
Educational : Exploring the Ichimoku Cloud IndicatorIn this article, I have made a sincere effort to explain each and every concept of the Ichimoku Cloud indicator in a clear and concise manner. My aim was to keep the explanations as simple as possible, ensuring that traders of all levels can easily understand and apply this powerful tool in their trading strategies. I understand that technical analysis can sometimes be overwhelming with complex indicators and calculations. Therefore, I have taken great care to break down the components of the Ichimoku Cloud and explain their meanings in plain language. By doing so, I hope to make the indicator more accessible to traders who may be new to the concept or seeking a simplified explanation. Introduction: In the world of forex trading, there are numerous technical analysis tools available to help traders make informed decisions. One such tool is the Ichimoku Cloud, also known as Ichimoku Kinko Hyo. While it may seem complex at first, this indicator offers valuable insights into market trends, support and resistance levels, and potential trading opportunities. In this article, we will dive into the details of the Ichimoku Cloud, explaining its components, calculation methodology, trading strategies, combining it with other indicators, and ultimately demystifying its potential benefits. What is the Ichimoku Cloud? The Ichimoku Cloud is a comprehensive technical analysis tool developed by Japanese journalist Goichi Hosoda in the late 1960s. Its name, Ichimoku Kinko Hyo, translates to "one-glance equilibrium chart," reflecting its purpose of providing a holistic view of the market in a single indicator. Unlike many other indicators, the Ichimoku Cloud is known for its simplicity and ability to convey complex market information at a glance. Understanding the Ichimoku Cloud Indicator: The Ichimoku Cloud indicator consists of several components that work together to generate valuable trading insights. Let's explore each component: Tenkan-sen (Conversion Line): This line represents the midpoint of the highest high and lowest low over a specified period. It serves as a dynamic support or resistance level, indicating short-term market sentiment. Kijun-sen (Base Line): Similar to the Tenkan-sen, the Kijun-sen also represents a midpoint. However, it considers a more extended period and provides a broader perspective on the market sentiment. Senkou Span A (Leading Span A): This line is formed by averaging the Tenkan-sen and Kijun-sen values and then plotted forward by the number of periods used for the Tenkan-sen. It provides an insight into potential future support or resistance levels. Senkou Span B (Leading Span B): This line is calculated by averaging the highest high and lowest low over a more extended period and plotted forward. The area between Senkou Span A and Senkou Span B forms the Ichimoku Cloud (Kumo). The color of the cloud varies based on the relationship between Senkou Span A and Senkou Span B and indicates the prevailing market trend. Chikou Span (Lagging Span): The Chikou Span represents the current closing price, plotted backward by the number of periods used for the Tenkan-sen. It helps traders identify potential support or resistance levels based on historical price action. How is the Ichimoku Cloud Calculated? Calculating the Ichimoku Cloud requires specific formulas based on historical price data. Here is a simplified summary of the calculations: Tenkan-sen: It is calculated by summing the highest high and lowest low over a specified period (typically 9 periods) and then dividing the sum by two. Kijun-sen: Similarly, the Kijun-sen is calculated by summing the highest high and lowest low over a different period (typically 26 periods) and dividing the sum by two. Senkou Span A: This line is formed by averaging the values of the Tenkan-sen and Kijun-sen and then plotting it forward by the number of periods used for the Tenkan-sen. Senkou Span B: It is calculated by summing the highest high and lowest low over an extended period (typically 52 periods) and then dividing the sum by two. Like Senkou Span A, it is plotted forward. Chikou Span: The Chikou Span represents the current closing price, plotted backward by the number of periods used for the Tenkan-sen. Applying the Ichimoku Cloud Trading Strategy: The Ichimoku Cloud can be used to develop various trading strategies. One popular approach is trend following. Here's a simple example: Bullish Trend: If the price is above the cloud, and the cloud is green (Senkou Span A is above Senkou Span B), it suggests a bullish trend. Traders may look for long positions when the Tenkan-sen crosses above the Kijun-sen within the cloud. Bearish Trend: Conversely, if the price is below the cloud, and the cloud is red (Senkou Span A is below Senkou Span B), it indicates a bearish trend. Traders may consider short positions when the Tenkan-sen crosses below the Kijun-sen within the cloud. It's crucial to note that additional analysis and risk management techniques should accompany any trading strategy. Backtesting and practicing the strategy in a demo environment are recommended before using it in live trading. Combining the Ichimoku Cloud with Other Indicators: While the Ichimoku Cloud can be used as a standalone tool, combining it with other indicators can enhance trading decisions. Here are a couple of examples: Moving Averages: Traders often combine the Ichimoku Cloud with other moving averages to confirm trends and potential crossover signals. For instance, the 200-day Simple Moving Average (SMA) can be used as a long-term trend filter. Oscillators: Oscillators, such as the Relative Strength Index (RSI) or the Stochastic Oscillator, can complement the Ichimoku Cloud by identifying overbought or oversold conditions. Divergences between the oscillator and price may signal potential reversals or trend continuation opportunities. Conclusion: The Ichimoku Cloud is a powerful technical analysis tool that offers a holistic view of the forex market. By integrating multiple components into a single indicator, it helps traders identify trends, support and resistance levels, and potential trading opportunities. While it requires practice and understanding, the Ichimoku Cloud can provide valuable insights to both novice and experienced traders. However, it's important to note that no indicator guarantees accurate predictions, and trading always carries risks. Traders should exercise caution, conduct thorough research, and combine the Ichimoku Cloud with other analysis techniques, risk management strategies, and prudent decision-making. In conclusion, the Ichimoku Cloud stands as a unique and comprehensive tool in the forex market, empowering traders with a deep understanding of market trends and potential trading setups. With its ability to simplify complex market information into a single indicator, the Ichimoku Cloud has gained popularity among traders worldwide.
Education
by AhsanTufail
EURUSD, stuck in the middle In this video I go over EURUSD from the Monthly, down to the 4hr. Monthly is Bearish Weekly is Bullish but with my favorite Bearish Div Setup. Daily has seen a HH-LL-LH-LL ABCD type formation, all this after my fav setup (Div w/Kijun break) on the weekly... So cautiously Bearish. 4hr shows some downside targets using Ichi Wave Theory, should this divergence play out. As always, good luck, have fun, practice solid risk managment. PS... Last 4hr target is 1.067... not the 1.076 my lysdexic ass stated :wink:
Short
by mrjones2020
Ichimoku Cloud Demystified: A Comprehensive Deep DiveHello TradingView Community, it’s Ben with LeafAlgo! Today we will discuss one of my favorite indicators, the Ichimoku Cloud. The Ichimoku is a versatile trading tool that has captivated traders with its unique visual representation and powerful insights. We will dive deep into understanding the Ichimoku Cloud, explore its history, discuss its parts, highlight real-life examples, and address potential pitfalls. By the end of this article, we believe you will know how to leverage the Ichimoku Cloud effectively in your trading endeavors. Let’s dive in! Origin of The Ichimoku Cloud The Ichimoku Cloud, also known as Ichimoku Kinko Hyo, was developed by Goichi Hosoda in the late 1930s but was not published until later in the 1960s. Its name translates to "one glance equilibrium chart," reflecting its ability to provide a holistic view of market dynamics with a single glance. Over time the Ichimoku Cloud has become a popular trading tool among new and seasoned traders. Components of The Ichimoku Cloud Some traders believe the Ichimoku cloud is a complex jumble of lines with no rhyme or reason, but this is not necessarily true. The best way to understand the Ichimoku cloud is to break it down into its respective parts. Each element contributes to the overall interpretation of price action, trend direction, support and resistance levels, and potential entry and exit points. The Ichimoku Cloud has five components: Tenkan-sen, Kijun-sen, Senkou Span A and B, and Chikou Span. The Tenkan-sen and Kijun-sen, often called the Conversion Line and Base Line, respectively, are essential in identifying trend direction and momentum. Below we can see a bullish signal happens when the Tenkan-sen crosses above the Kijun-sen. Conversely, a bearish signal occurs when the Tenkan-sen crosses below the Kijun-sen. Typical length inputs for the Tenkan-sen and Kijun-sen are 9 and 26. The Senkou Span A and B form the cloud or "Kumo." These components serve as dynamic support and resistance levels, with Senkou Span A calculated as the average of the Conversion Line and Base Line and Senkou Span B representing the midpoint of the highest high and lowest low over a specified period, typically 52. The cloud's thickness and color provide visual cues for potential market strength and volatility. The Chikou Span, or the Lagging Span, is the current closing price plotted 26 periods back on the chart. It helps traders gauge the relationship between the current price and historical price action, providing insights into potential trend reversals or continuation. Putting the parts together gives us a complete picture of the Ichimoku Cloud. Each aspect contributes to the one-glance equilibrium theory, giving traders a more holistic view of price action. Applying the Ichimoku Cloud in Trading We now better understand all parts of the Ichimoku cloud, but that means little if we don’t understand how it can be utilized in trading. Let's explore examples that demonstrate the practical application of the Ichimoku Cloud: Example 1: Trend Following In an uptrend, we would look for the Tenkan-sen to cross above the Kijun-sen while the price remains above the cloud. When the price retraces to the cloud, a long position opportunity may arise, with the cloud acting as support. The Chikou Span should also be above the historical price action, confirming the bullish sentiment. Example 2: Trend Reversals and Breakout Opportunities A potential trend reversal or continuation can be identified when the Tenkan-sen crosses above the Kijun-sen and the price moves above the cloud. A breakout trade can initiate when the price breaks through the cloud's upper boundary, indicating a shift in momentum. For the Ichimoku cloud to give its strongest confirmation of a reversal, some traders will take a fairly conservative approach and wait for a few things to occur. Traders typically wait for a kumo twist, the Tenkan-sen/Kijun-sen cross, and the Chikou Span to break the cloud and be above the price. The reverse of these signals can be used in the same fashion for a short position. Example 3: The Kumo Twist In a trend, a Kumo Twist can signal a potential trend reversal. Look for the Senkou Span A to cross above or below the Senkou Span B within the cloud. This twist can confirm a shift in market sentiment. Traders can enter a position when the twist is confirmed, placing a stop loss above or below the cloud or the recent swing high/low. I think of the Kumo twists and subsequent clouds as a trend filter. Placing longs on the bullish side or shorts on the bearish side, however, some traders use the Ichimoku Cloud in a contrarian fashion. Contrarian trades can be profitable using this method as price tends to pull back to the clouds A or B span where support or resistance may lie. Pitfalls and Challenges: Avoiding Common Mistakes While the Ichimoku Cloud is a powerful tool, it is paramount to be aware of potential pitfalls. Here are a few challenges to navigate: False Signals and Choppy Market Conditions In ranging or volatile markets, cloud signals may generate false indications. During such periods combine the Ichimoku Cloud with other technical indicators or wait until the market picks a direction. Moving out to higher time frames can help clear the murkiness of consolidation phases and provide a clearer picture of the trend, in turn, weeding out false signals. Overcomplicating Analysis The Ichimoku Cloud provides a wealth of information, but it's crucial to maintain simplicity and focus. Avoid overcrowding the chart with an abundance of indicators, especially other overlays. It is easy to get lost in the sauce or run into redundancies with too much on the chart. Testing and Adapting Each market has its characteristics or volatility, and it's essential to backtest the Ichimoku Cloud strategy, experiment with different parameters, and adapt to market conditions over time. Many traders rely on the standard settings, but in my time developing trading algorithms, I have learned that those settings do not hold from market to market or consistently over time. It is critical to regularly revisit your settings or overall trading strategy to make sure you are drawing on the best available information the Ichimoku Cloud can give. Enhancing the Ichimoku Cloud Strategy To enhance your understanding and utilization of the Ichimoku Cloud, consider the following: Incorporating Other Technical Indicators Combining the Ichimoku Cloud with other indicators, such as oscillators, to confirm signals can be beneficial. I know I said not to over-clutter your chart with other indicators, but that is a rule of thumb more set for overlays. Timeframe Considerations Adapt the Ichimoku Cloud to different timeframes based on your trading style. Higher time frames may provide more reliable signals, while lower timeframes may offer shorter-term opportunities. I don’t believe it ever hurts to back out a few time frames to get a clear picture of market dynamics and avoid tunnel vision. Conclusion The Ichimoku Cloud is a versatile indicator, and today we scratched the surface of how it can be appropriately used. Remember, practice, patience, and continuous learning are critical for refining your skills and adapting the Ichimoku Cloud strategy to ever-evolving market conditions. If there is anything unclear or you have any questions, please don’t hesitate to comment below. Trading education is our passion, and we are happy to help. Happy trading! :)
Education
by LeafAlgo
49
SFPBUSD - Make or Break Triangle Pattern about to burstI've been following this asset since March '22 and it followed the downtrend pretty strongly until it entered into a massive ranging mode. Even though the whole market was moving a lot, this coin continued to play under this strong range. Right now, I've managed to see a triangle formation which I believe it's crucial to identify which way price might go next. We either get a breakdown which signifies a downtrend continuation or we continue to play in the range and it's time the bulls take over temporarily. If we get a breakdown this would be potential profit target zone: 0.2579 - 0.2899 Since it's a ranging market it could just go either way and could be hard to predict. Manage risk accordingly. Happy Trading! ♥
S
by KinaStar
JASMYUSDT 😉 Trading PlansWe could potentially have 3 moves I could forecast. Bullish scenario First move would be a break above 0.0046 that would totally mean bulls are taking over but we could potentially see a second move that could be a correction towards previous resistance that has turned into support 0.0042 then the bull move would continue Targets: 0.0057 - 0.0066 Bearish scenario Third move we could see it's a bearish correction for that to happen we should see a double top and failed attempt to move higher at around 0.0043 and an impulse move down into the next key levels. Targets: 0.0038 - 0.0036 or even 0.0030 Let's see how this plays out! I'll update when I open a position Regards, Kina 😉
by KinaStar
2
TLMUSDT 🤔 Downtrend continuation or REVERSAL Hey guys! We'll be monitoring for the bears to get exhausted we've got a couple of exhaustion candles in the daily timeframe and in the lower timeframes price is consolidating. Reversal Bullish Scenario: Target 0.012 safely as 0.014 has turned into a possible supply zone so I only expect to see a slow recovery short term. 0.015 is the key level which had the highest volume traded so I believe price would re-test this level but we need confirmation. Bearish Continuation: No man's land price would create newer and lower lows so trade can be open and moving SL into entry as soon as in profits safely. This would get trigger if the 0.010 level won't hold and support trades below it. Keep it Shiny and remember always question everything Kina 🤔
by KinaStar
IOTXUSDT 😶‍🌫️ Double Bottom Reversal Hey guys! We'll start monitoring the possible reversal for IOTX and I'm going to be straightforward: for this asset to start saying it's bullish we need to see a break above and close over 0.024 meanwhile we are trading in the range. Bullish scenario would play like this: First target: 0.019 then we'll TP For this to happen I'd like to see some sort of pattern like a double bottom or IH&S. Bearish scenario would go like this: Target open because it would be creating new all time lower lows we'd be then moving stop loss to entry as soon as in profits. But the trigger would be a close below: 0.015 I'm rooting for the bullish scenario as I'm a very hopeful person but we take what the market gives and be open to both scenarios always! Manage risk accordingly and never be biased. Happy trading! Kina 😶‍🌫️
by KinaStar
2
Are You Ready For Crypto Bear Market???DONT FORGET TO CHECK MY PREVIOUS ANALYSIS, #Bitcoin i believe bitcoin had enough of bullish retracement and its time to continue the main direction which is for sure bearish. i have pointed out the main zones to look out for, the chart speaks much than i have to... + Dont Forget To Match With Your Strategy. Like + Comments Will Be A Big Support. Disclaimer: Buying OR Selling is your own decesion. This is just my personal view of the market for educational purposes.
OANDA:BTCUSDShort
by IchimokiFx
2
WOOUSD 🕯️ Touching Support Area from Rising Channel Pattern We've got 2 things that could happen: It either breaks downward the rising channel it has been trading for a very long time and this means bears would take control so in that case: Bearish target would be: 0.15 - 0.17 area It resumes the uptrend and bounces off this support area as it has been doing for the past months and since NOV '22 actually. So it's been a very long and consistent pattern that has been playing out. I'd be cautious to go against it until a very good confirmation is in place. Bullish Target : 0.26 - 0.30 area Happy trading and I'll keep updating as I see points of interest. Regards, 🕯️ Kina 🕯️
by KinaStar
JASMYUSDT - 2 possible scenariosPrice has currently entered into a trading zone which we could try to predict 2 sides according to that it does in the next days or week. Key zone we are analyzing here: 0.0046 - 0.0042 Bullish if: Support holds and after a double bottom or inverse h&s, we get confirmation of a breakout from the pattern then we can go long. Bearish if: Breaks down the zone then it would go down to the next area which is 0.0034 - 0.0037 Please manage risk accordingly. I'll be updating and following this coin ♥
by KinaStar
8