GBPUSD "trend" analysis using ICHI CLOUD + RSI
Imagine the Ici cloud as nothing more complex or even more beneficial as an EMA or MA.
I guess one visual benefit is that it does give some pretty dang good target areas to target accumulation or distribution.
If using the I. Cloud for trend analysis I think you can safely drop the lag line. It's nothing more than a mirror of the current price. Unless there is someone that cares to explain it better I am all ears. Otherwise, its BS. All the lagging line is, is extra noise on the chart. Here all that is activated is the leads 1 and 2 and the plots background. Numeric setting dont need to be changed.. of course that is something you can toy with, but i think the box numeric settings are fine.
Once the downtrend is confirmed the next step would be to wait until price reaches the cloud. Once this happens you can begin your phase analysis on the 5 or 15... kinda easy
The RSI is as i have been talking about it in the past. On the 1 hour (here is the 30 but imagine its the 1 hour) and in a DOWNTREND wait for RSI to get above center-line, axis, 50 level or here a 100 EMA.
RSI is set to 7 here, not 14. Its mostly preference but why i like this setting is when RSI is at 14, it may or may not reach outside of the channel as frequently as I would like.
For RSI (and simplicity)
In a 1 hour uptrend wait for RSI to drop below center-line for re-accumulation
In a 1 hour downtrend wait for RSI to rise above center-line for re-distribution
...then of course you drop to 5/15 for phase analysis and entry.
For TREND ANALYSIS Ichimoku clooud is definitely of high utility. But I have not found anyone who can simplify its use. Some people treat it like its some higher level sh***.... its not. Its a combination of moving averages and what are moving averages? lines on a chart. I do think the cloud will be helpful in slowing you down before making a crazy rushed entry. For example, you may have decided to trade short with the trend, but if pric hasnt reached the cloud or at least RSI over 50, you know your chances of this not working out in your favor increases.
I guess one visual benefit is that it does give some pretty dang good target areas to target accumulation or distribution.
If using the I. Cloud for trend analysis I think you can safely drop the lag line. It's nothing more than a mirror of the current price. Unless there is someone that cares to explain it better I am all ears. Otherwise, its BS. All the lagging line is, is extra noise on the chart. Here all that is activated is the leads 1 and 2 and the plots background. Numeric setting dont need to be changed.. of course that is something you can toy with, but i think the box numeric settings are fine.
Once the downtrend is confirmed the next step would be to wait until price reaches the cloud. Once this happens you can begin your phase analysis on the 5 or 15... kinda easy
The RSI is as i have been talking about it in the past. On the 1 hour (here is the 30 but imagine its the 1 hour) and in a DOWNTREND wait for RSI to get above center-line, axis, 50 level or here a 100 EMA.
RSI is set to 7 here, not 14. Its mostly preference but why i like this setting is when RSI is at 14, it may or may not reach outside of the channel as frequently as I would like.
For RSI (and simplicity)
In a 1 hour uptrend wait for RSI to drop below center-line for re-accumulation
In a 1 hour downtrend wait for RSI to rise above center-line for re-distribution
...then of course you drop to 5/15 for phase analysis and entry.
For TREND ANALYSIS Ichimoku clooud is definitely of high utility. But I have not found anyone who can simplify its use. Some people treat it like its some higher level sh***.... its not. Its a combination of moving averages and what are moving averages? lines on a chart. I do think the cloud will be helpful in slowing you down before making a crazy rushed entry. For example, you may have decided to trade short with the trend, but if pric hasnt reached the cloud or at least RSI over 50, you know your chances of this not working out in your favor increases.