WHAT IS ICHIMOKU, LISTEN SO MUCH JAPANESE?

True Japanese authentic, Ichimoku is a set of indicators designed to be a single system. These indicators have the role of identifying resistance/support, identifying trends and identifying an entry point for traders. Due to its versatility (many uses), Ichimoku is a separate system and does not need to be combined with any other indicator or method.


JAPANESE JAPANESE BEAUTIFUL GIRLS, DO NOT KNOW THIS ICHIMOKU SHOULD BE BEAUTIFUL?

In that Ichimoku collective that consists of 5 members (5 super brothers), this will only notice, Japanese movies are all odd.


  1. Tenkan-sen line (signal line): the green line, calculated by the average of the 9-period highs and lows.
  2. Kijun-sen line (trend line): red line, calculated by the average of 26-period highs and lows.
  3. Senkou Span A: Average of Tenkan-sen and Kijun-sen. This line is considered the future forecast line because it is ahead of 26 candles.
  4. Senkou Span B: is calculated as the average of the 52-period highs and lows. This line is also considered the future forecast line because it is ahead of 26 candles. Senkou Span A and Senkou Span B combine to form the Kumo cloud, guiding prices 26 periods ahead.
  5. Chikou Span (green): the line is late, it is the current price line which is delayed 26 periods.

HOW TO USE 5 ICHIMOKU BROTHERS?

The following is the strategy used for Ichimoku. Traders will use the Kumo cloud (created by Senkou Span A and Senkou Span B) to determine the current trend and decide whether to BUY or SELL. The price is below the cloud Kumo, we SELL and only SELL, the price is above the cloud, we BUY and only BUY.

Once identified the direction, the Trader waits for the price to return to the Kijun-sen line (trend line) and starts to cross Tenkan-sen (signal line) before entering the order.

Specifically, with a BUY strategy when:

1. The price is above the lowest level of the Kumo cloud. The cloud will be good support for the price.

2. The price moves below the red Kijun-sen line (trend line), creating a pullback for the price.

3. Price retrace by cutting up the blue Tenkan-sen line (signal line)



Specifically, with the SELL strategy when:

1. The price is below the highest level of the Kumo cloud. The cloud would be a good resistance to price.

2. The price moves up above the Kijun-sen red line (trend line), creating a bullish pullback for the price.

3. Price retrace by cutting down the blue Tenkan-sen line (signal line)