How I Trend Trade with Ichimoku (finding divergence)..

FX:USDJPY   U.S. Dollar / Japanese Yen
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This is a great tool that I have never seen anyone talk about. Well, I'm talking about it
@Ichimoku_Trader I'm trying to think about the mechanisms behind this divergence. Please tell me if my reasoning is correct.

So a strong price move would have a greater effect on the faster TS that would then start to move away from the slower moving KS causing the separation of the lines and in turn creating the larger "bubble" (or scissors as I have heard them being called before).

When the market starts ranging the two lines catch up and moves closer to each other again - momentum loss.

The move that caused the second bubble wasn't strong enough, or didn't continue long enough for the lines to separate. It can take a lot of power to quickly change the "memory" of the KS based on past price action.

I assume that TS/KS moving as a single strongly angulated line (laminated on top of each other) could have two meanings then.
1. A strong price move just started (after a range)
2. A price that's move been going for a while has extreme undying momentum (both TS and KS are fully affected by strong past price action) (phenomenon can be observed just before the larger bubble)

So if 2 is true a small bubble could also mean more momentum? Perhaps that would more look like a tapering effect?

Does it sound like I understand this correctly? :)

I like your questions a lot but I will not answer them because I want you to keep developing your understanding of what is happening and why
Please keep asking questions and we can discuss them all at the end of January 2019. Until then, please keep thinking

Good luck
colicoid Ichimoku_Trader
@Ichimoku_Trader, Thanks! Leave me hanging for a month. :)

With the risk of reasoning more without having finished contemplating the matter:

Another thing I was thinking about today about these "bubbles" is that if there are none (in a strong trend), it must mean that there are virtually no pullbacks and it is possibly a sign of a parabolic trend. Such trends are typically not sustainable for extended periods. Isn't it more healthy if there are some decent pullbacks or flags etc.?

Analogy: When you hit the gas pedal to the floor of a car, the RPM of the engine shoots up quickly (TS moves away from KS forming a large bubble). But it takes a while for the actual car to start moving and pick up speed (KS starts moving).

So in a large bubble, the engine is screaming but the car isn't moving as fast - yet...

So what is best - a small or a large bubble?


We are dealing with people. The main driver is greed or fear

The questions now become...
what are the implications of market action on these feelings
What do people feel when price moves very fast in an impulsive or a corrective manner
Do beginners, intermediates and advanced traders react in the same way
What is the impact of one of these trader types reacting without the others

I confirm all my entries and exit using the cloud of ichimoku. If you know how to use is extremely precise.

Great job
Please share your knowledge with us so we can all benefit
Coinamic Ichimoku_Trader
@Ichimoku_Trader, have a look at my last chart.

At the SSB, the assumption should always be continuation of the original trend BUT the possibility of a move in the other direction is always possible
Tks you, great post.
What is the significance of the divergence? In other words, what does it tell us exactly? A higher divergence higher upcoming momentum?
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