Bitcoin reached 3D Kumo cloud and previous resistance marked by Kijun Sen a while back. Watch the video and see my thought about possible reversal to 20k from here.
Looking back at this... it did fall to little under 20k ✅
averkie_skila
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Still, a setting of 20 60 120 30 is not the best.
ChartMundi
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@averkieskila, well, it worked so well in the past, that's why I use for volatile markets an many others use it like this. But yeah, not default settings.
averkie_skila
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@ChartMundi, You know, and I won't hesitate to answer you. Especially since you're doing your research. Since I do, too. The problem is that the so-called crypto settings create too big a cloud, which will create the illusion that once the price has entered it, it must reach the upper limit of the cloud. I've been using these settings for over a year just like you. And gave it up, especially after listening @norok explanations. He has a live stream where he experimentally shows that original ones by Goichi Hosoda process market picture better without any correction. I will show it using etherium as an example. Here is a three day chart of ETH/USDT with classic settings. We can see that a small red cloud is closing now and some green will follow... Meanwhile, the volatility indicator (sqzmom) says that the move is already at the peak of possibilities, the resistance level is close. The price will have to reset. And then the upper boundary of this future green Kumo cloud will start to pull in like a magnet. Or the price will move underneath the cloud altogether. But if it is a really big move up, price will just fall to the first level under this little green cloud and consolidate. And then the picture will be quite interesting on the chart. With a real claim to a big upside (Z daily consolidation). Using the crypto settings you will simply wait for e.g. $3000 for the etherium, while the price will wiggle higher, then lower… So this is how the classic settings allow you to see a slightly more differentiated picture of the clouds, which can play a decisive role.
ChartMundi
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@averkieskila, totally agree with you that there's a slight difference of the clouds and that using double settings you might be late in the move, but for me it's a more conservative approach to trading and not hyping into volatility. I use other triggers to appreciate when to enter or not such as price action or some EMA's. Thank you for your explanation, it makes sense and I'll check @norok explanation tool. Do you have a link? Thanks
averkie_skila
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@ChartMundi, In private messages you can ask him in which stream he was talking about the Ichimoku setting. I don't remember which stream. A few months ago.
tradingview.com/streams/Yt0-rFDqdl When Bitcoin started the breakout I did a livestream about it and I laid out the premise of using the traditional Ichimoku settings. I did a deep dive a year ago into the comparison between the traditional versus crypto and made a YT presentation about it but TV does not like external links.
What I always say is that consistency is key. If you use one Ichimoku setting you should continue using it to train your style. That being said... the results for Bitcoin breakouts using classic Ichimoku were demonstrably better over Bitcoin's history.
The beauty of Ichimoku is that if you feel like you want longer term setting you need only to go up to a higher timeframe and us the same Ichimoku for analysis.