There are many TA tools which can be used for different markets and timeframes and give interesting trading opportunities. But there is one of the most universal trend-following indicators like Ichimoku. It's the amazing indicator which can be used with different markets and on different timeframes. This amazing indicator can provide amazing trading signals.
Today, I would like to show you possible trading signals provided by Ichimoku indicator in Apple market. When the price dropped below the cloud, we go the 1st sell signal. I marked other signals which were based on the breakouts of the local swing lows, but also we could open sell trades based on the reversal signals from Tenkan and Kijun lines. Trading based on both types of signals could give us a huge profit.
When the price moved above the cloud, we got a new trading opportunity but this time for buying. We can use the same tactic for the uptrend, buying based on breakouts above the local swing highs or based on reversal signals from the indicator's lines.
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P.S. If you want to learn how to trade trend reversals, please read details in the post from the related ideas.
Blue crosses above red, below red cloud and price is below and entering cloud: beatific edge to edgers.
MateuszP.Rydzik
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I love Ichimoku. It's definitely my favourite tool when it comes to trading and investing, especially in a long term (min 1D chart). The only thing is, I am still not sure when to sell - when the price goes below the cloud or Kijun (red). It's tricky very often. I wish I could master the skill of when to sell, without being caught in the market manipulation.
Thanks!
Matt.
DLavrov
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@Mateuszp.Rydzik, it's simple - if the price moves above the cloud - a market becomes bullish. You search for buy opportunities. When price drops below the cloud - a market becomes bearish and you search for sell opportunities. The lianes are used for getting reversals and trading in the direction of the main trend.
Also flat lines often act as levels. After an impulse red is usually at .618- use the lagging span to see if trending or in chop still. Can be used for support and resistance. I have found we break through red and hold price at green cloud (IMO). Last and beat: green cloud green future.