I'll explain this the best I can for those who like to know more about the way I trade Ichimoku. This is a glance explanation and there is a lot more analysis which I didn't included but may in some micro analysis at a later date.
I thought i'd share this past chart analysis i found as we were presented a 9 wave count (usually means the end of the trend is near) followed by a nice correction to the upside. If you were too aggressive and didn't allow the market to communicate what it was really intending to do, you'd enter the market believing the bulls were back in control.
The down tread resulted in a P Wave forming around the 9 count (possibly traders taking profits or hopeful traders believing the trend would reverse) with price breaking the P Wave to the up side giving it some momentum (bulls). I included the failed N Wave which was never activated due to the price never breaking the B point, instead bears regained control sending price for another 7 wave count (E Wave calculation) of 1000+ pips ending close to a Ichimoku Number 129 (Combined 8).
1000 pips in a couple of days something you wouldn't want to miss thinking the trend had ended.
This is Great Stuff. I trade Ichimoku and have been trying to incorporate three principles as laid out In Nicole Elliott's book. However, I don't quite understand it (I maybe a little thick :)) and your explanation certainly helps. I will check out your other posts and would greatly appreciate if you could cite any reference material
DoubleBomb
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@AGold54, Thank you, yes any questions are fine. I've looked over her book a long time ago and correct me if i'm wrong but she seems to emphasize a lot on the 5 lines more the theories around Ichimoku. Don't think as yourself as thick, it's hard when it come to trading as we all have different reference points.
And if you are new to trading it's like learning a new language with your teacher (education material etc) not knowing how to speak your language to teach you (hopefully that makes sense haha)
AGold54
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@DoubleBomb, Thanks Doublebomb, I was wondering do you have an indicator for the waves?
DoubleBomb
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@AGold54, Wave structure or Wave projection? No for both.
@AGold54, An indicator for it is almost impossible as it is price structure, observation and interpretation needed. The complexity of this is just too hard to grasp for a machine. But if anyone is able to do it like good lord congrats to them.