Should You Buy or Sell? How to Tell in 60 Seconds!
You can try this right now. This works on any timeframe with any deeply liquid market. All major and Yen-cross currency pairs, stocks, bonds, futures, etc. Let Ichimoku Kinko Hyo lead the way! Try this yourself right now.
Always Start with the Cloud
1. Open a EURUSD 4-Hour Chart.
2. Click Indicators. Search for the Ichimoku Cloud indicator, and add it to your chart.
3. Look at current price.
4. If price is ABOVE the CLOUD, this indicates BULLISH momentum. You should be looking for opportunities to BUY.
5. If price is BELOW the CLOUD, this indicates BEARISH momentum. You should be looking for opportunities to SELL.
CAUTION: Never execute any trade based solely in any single data point. However, using Ichimoku Kinko Hyo as a momentum filter has been proven highly reliable in over 70 years of trading in real markets. Ichimoku gives you an accurate, real-time, objective, data-driven method to determine whether you should be looking to buy or sell an instrument on your chosen time frame. Once you learn the full Ichimoku system, you can use it to enter and exit real trades with high probability of continuation.
Why This Works
The Efficient Markets Hypothesis (EMH) has not been proven wrong. This means that the price you see on any chart for any given instrument is the 'correct' price at that moment. Modern markets are highly efficient. All available information, all order flow from every corner of the world in any liquidity pool is automatically priced-in by the market participants. This means that there is zero chance that a trader will ever be able to 'out-research' or out-algo' the market at large. This means that there is no edge to be had by trying to predict when a market is 'overbought' - priced too high, or 'oversold' - priced too low. There is no 'overbought' or 'oversold' condition that can exist in real time, i.e.; There is no way to arbitrage price differentials across markets.
The Edge
However, what is also true about the EMH is that it does not account for a very real phenomenon observed in all open markets. That phenomenon is called 'Momentum.' Momentum is sometimes defined as a sustained rate of change in price, in a specified direction (up or down), over a specified period of time. Trends cannot exist without Momentum. Trend is really another term for Momentum, a series of higher highs and higher lows over a specified period of time. Volatility is also a component of momentum, in that Volatility is the magnitude of price change over a specified period of time. The EMH has never been able to account for the phenomenon of Momentum. What is objectively true, and what has been measured scientifically for decades now, is that Momentum is very real. Momentum seems to reflect the natural tendency in organic multi-factor systems for the actions and reactions of the constituent members of the system to compound over time. The effect of this compounding factor is that one observes periods in markets when price seems to drum along quietly without any real change, then price moves higher or falls lower, and sustains this vector of movement in linear waves over time.
This phenomenon of momentum exhibits in fractal manner on all time frames, in all open and free markets. Even liquidity pools that are only open to high-frequency algorithmic systems for order execution and clearing, where no human beings are involved in any way when trades are executed, exhibit the same phenomenon of Momentum. An Ichimoku view of a Hi-Freq millisecond chart looks the same as a 4-hour chart, or a Daily chart, in that the wave forms look similar. This fact likely means that no matter how sophisticated a trading system becomes, no matter how much data can be analyzed in nanoseconds of time, no matter how fast adaptive self-morphic AI neural net systems become, none shall be able to surmount the temporal barricade of uncertainty to predict the future.
Always Start with the Cloud
1. Open a EURUSD 4-Hour Chart.
2. Click Indicators. Search for the Ichimoku Cloud indicator, and add it to your chart.
3. Look at current price.
4. If price is ABOVE the CLOUD, this indicates BULLISH momentum. You should be looking for opportunities to BUY.
5. If price is BELOW the CLOUD, this indicates BEARISH momentum. You should be looking for opportunities to SELL.
CAUTION: Never execute any trade based solely in any single data point. However, using Ichimoku Kinko Hyo as a momentum filter has been proven highly reliable in over 70 years of trading in real markets. Ichimoku gives you an accurate, real-time, objective, data-driven method to determine whether you should be looking to buy or sell an instrument on your chosen time frame. Once you learn the full Ichimoku system, you can use it to enter and exit real trades with high probability of continuation.
Why This Works
The Efficient Markets Hypothesis (EMH) has not been proven wrong. This means that the price you see on any chart for any given instrument is the 'correct' price at that moment. Modern markets are highly efficient. All available information, all order flow from every corner of the world in any liquidity pool is automatically priced-in by the market participants. This means that there is zero chance that a trader will ever be able to 'out-research' or out-algo' the market at large. This means that there is no edge to be had by trying to predict when a market is 'overbought' - priced too high, or 'oversold' - priced too low. There is no 'overbought' or 'oversold' condition that can exist in real time, i.e.; There is no way to arbitrage price differentials across markets.
The Edge
However, what is also true about the EMH is that it does not account for a very real phenomenon observed in all open markets. That phenomenon is called 'Momentum.' Momentum is sometimes defined as a sustained rate of change in price, in a specified direction (up or down), over a specified period of time. Trends cannot exist without Momentum. Trend is really another term for Momentum, a series of higher highs and higher lows over a specified period of time. Volatility is also a component of momentum, in that Volatility is the magnitude of price change over a specified period of time. The EMH has never been able to account for the phenomenon of Momentum. What is objectively true, and what has been measured scientifically for decades now, is that Momentum is very real. Momentum seems to reflect the natural tendency in organic multi-factor systems for the actions and reactions of the constituent members of the system to compound over time. The effect of this compounding factor is that one observes periods in markets when price seems to drum along quietly without any real change, then price moves higher or falls lower, and sustains this vector of movement in linear waves over time.
This phenomenon of momentum exhibits in fractal manner on all time frames, in all open and free markets. Even liquidity pools that are only open to high-frequency algorithmic systems for order execution and clearing, where no human beings are involved in any way when trades are executed, exhibit the same phenomenon of Momentum. An Ichimoku view of a Hi-Freq millisecond chart looks the same as a 4-hour chart, or a Daily chart, in that the wave forms look similar. This fact likely means that no matter how sophisticated a trading system becomes, no matter how much data can be analyzed in nanoseconds of time, no matter how fast adaptive self-morphic AI neural net systems become, none shall be able to surmount the temporal barricade of uncertainty to predict the future.