Kumowizard

Good example why I combine Ichimoku and Heikin-Ashi (mixed post)

FX:SPX500   S&P 500 index of US listed shares
317 1 10
Answer is very simple:

if you trade on a market, which is not trending, just moving kind of sideaways for long time, Ichimoku alone is not enough. Why? Because Ichimoku was designed as a pure trend following system.

Look at SPX             weekly. With use of Heikin-Ashi on top of Ichimoku system, it can be nicely traded in both directions, and trades can be executed earlier than weekly Ichimoku signals would suggest alone!

Look at EURHUF! If you'd only take Ichimoku criterias, trading rules and generated signals strictly, you were continously lose money or not make any money at best. Some people (including those who envy my successes and have been criticising me only for the last 5-7 years) will always tell you this system is a BS, and it is not working. Some of them (including one of my older bosses) even say technical analysis doesn't work at all, or doesn't work in case of ccys like EURHUF! :-D OMG             (LOL)
Well, these people generally are the shittest risk takers, they know nothing about trendfollowing and setups, and most of them always try to chase all markets and assets on too low timeframes. Or even worse, they are sht risk takers, paper gurus, talking heads... nothing else.

Fact 1: Technical analysis IS WORKING, you just have to master your risk taking and risk management! Also you have to continously work on your mental approach! Yes, it is an every day hard job, and sometimes it is very difficult.

Fact 2: Ichimoku is proven, and IS WORKING, just as a trendfollowing system it is not useful in ranging markets. And markets like EURHUF             can sometimes stuck in a wide range for quite a long time.

Here came my great breakthrough with Heikin-Ashi, when I got to know Mr. Dan Valcu (@educofin) and start reading his work. I tried to understand and use Heikin-Ashi I started to understend the very simple basics and rules of HA system years ago, but back then I did not quite realise its power. I had to dig into it, and got to the conclusion of combining the two japanese system ... again, this is how I met Dan Valcu... as basically it was first him, who started to examine the relation of the two systems.

Ever since I trade this new combined system, adding all my other very important trading rules developed through years (risk management, position sizing, ATR stops, etc.) guess what, I managed to make nice money on more choppy, sideaway markets too! Besides that, I also improved in realising reversals, high probablilty inflection points right in time!

If I could make it, anybody else can make it! It is up to you. You can talk, or get stressed and confused, etc., or you can chose to open your mind with Japanese techniques, get relaxed with them, add your discipline and hard work to build your own system, and finally succed!
educofin
5 months ago
Heikin-Ashi and Ichimoku work in any market, any time frame. Combining the two, the trader, even the investor has the advantage of a longer- and shorter-term trend approach. One high-picture (Ichimoku) and one fine-tuning system (Heikin-Ashi). @kumowizard is a #heikinashi wizard and makes $$$$.
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