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Ichimoku Cloud

what is the most effective indicator?There isn’t a single "most effective" trading indicator that works for everyone, as effectiveness depends on your trading style, strategy, and the market conditions. However, some indicators are considered more versatile or reliable when used correctly. Here's a breakdown to help you choose: Most Effective for Trends: Moving Averages (EMA or SMA): Simple and effective for identifying trends. Works well in trending markets but less reliable in sideways or choppy markets. Pro Tip: Combine short-term and long-term moving averages for crossovers. Ichimoku Cloud: A comprehensive indicator that provides trend direction, support/resistance, and momentum. Effective but requires practice to interpret correctly. Most Effective for Overbought/Oversold Levels: Relative Strength Index (RSI): One of the most popular and effective indicators for spotting overbought or oversold conditions. Works well in both trending and range-bound markets when combined with other tools. Stochastic Oscillator: Similar to RSI but includes %K and %D lines for crossovers. Effective for momentum confirmation. Most Effective for Volatility: Bollinger Bands: Great for identifying periods of high or low volatility and potential breakout zones. Useful for sideways (range-bound) markets and trend reversals. Average True Range (ATR): Excellent for setting stop-loss levels and identifying market volatility trends. Works well in conjunction with trend indicators. Most Effective for Momentum: Moving Average Convergence Divergence (MACD): Ideal for spotting trend reversals and momentum shifts. Effective when used with a confirmation indicator like RSI. Parabolic SAR: Simple for identifying trend direction and potential exit points. Works best in trending markets. Combination for Higher Effectiveness: Trend + Momentum: Combine EMA with MACD to identify trends and entry/exit points. Overbought/Oversold + Volume: Use RSI with Volume Indicators (e.g., OBV) to confirm breakouts or reversals. Volatility + Trend: Use Bollinger Bands with Ichimoku Cloud to spot breakout opportunities with clear trend guidance.
Education
by CobraVanguard
HOW TO TRADE with the ICHIMOKUThe Ichimoku is one of the best-trending indicators out there. The best strategy you could use is the CLOUD BREAK. When the price is breaking out of the cloud, you enter into a trade in this direction. This is the best strategy because the Ichimoku Indicator shows you multiple timeframes simultaneously, but the cloud is the highest timeframe, which means it is the strongest, and you will have fewer whipsaws and false entries with it. This indicator is also a great tool, to hold onto your winning trades and let your profits run. Once you get professional with it, you will know how to recognize both trending environments and ranging environments. This means that you will know how to apply different strategies that are fit to that specific environment.
NASDAQ:COINEducation
by ZoharCho
Ichimoku Cloud: How To GuideHave you ever considered using the Ichimoku Cloud, a powerful and versatile technical analysis tool that goes beyond traditional chart analysis? 💜 If you appreciate our guides, support us with boost button 💜 Discover the Ichimoku Cloud, technical analysis tool developed by Japanese journalist Goichi Hosoda in the late 1960s. This method visually represents support and resistance levels, providing crucial insights into trend direction and momentum. Let's delve into the key aspects of the Ichimoku Cloud, providing you with insights and skills to take another step up in your trading game. 1. Understanding Ichimoku Cloud Components of the Cloud: The Ichimoku Cloud comprises five key elements — Tenkan-sen, Kijun-sen, Senkou Span A, Senkou Span B, and the Kumo (cloud). Grasping the role of each component is fundamental to interpreting the cloud's signals. - Kijun Sen (red line): The standard line or base line, calculated by averaging the highest high and the lowest low for the past 26 periods. - Tenkan Sen (blue line): The turning line, derived by averaging the highest high and the lowest low for the past nine periods. - Chikou Span (green line): The lagging line, representing today’s closing price plotted 26 periods behind. - Senkou Span (red/green line): The first Senkou line is calculated by averaging the Tenkan Sen and the Kijun Sen and plotted 26 periods ahead. The second Senkou line is determined by averaging the highest high and the lowest low for the past 52 periods and plotted 26 periods ahead. It’s not necessary to memorize the computations; understanding their interpretation is key. 2. Trading Strategies with Ichimoku Kumo Twists and Turns: The twists and turns of the Kumo offer valuable signals. A bullish twist occurs when Senkou Span A crosses above Span B, while a bearish twist is signaled by the reverse. These crossovers present entry and exit points. The Power of Kijun-sen and Tenkan-sen: The relationship between the faster Tenkan-sen and the slower Kijun-sen offers additional insights. A bullish crossover suggests a potential uptrend, while a bearish crossover may indicate a trend reversal. Utilizing the Lagging Span: The Lagging Span (Chikou) acts as a momentum indicator. Confirming its position relative to the price and cloud provides a powerful confirmation tool for trend strength. 3. Practical Tips for Ichimoku Trading Timeframe Considerations: Adapt your approach based on the timeframe. Longer timeframes offer a broader market perspective, while shorter timeframes can reveal short-term trends. Risk Management: Like any trading strategy, risk management is paramount. Set stop-loss orders, and ensure risk-reward ratios are carefully considered before executing a trade. Backtesting and Practice: Before going live, engage in extensive backtesting and paper trading. This will hone your understanding of Ichimoku signals and enhance your ability to interpret them in real-time. 4. How to Interpret Ichimoku Lines Senkou Span: - If the price is above the Senkou span, the top line serves as the first support level while the bottom line serves as the second support level. - If the price is below the Senkou span, the bottom line forms the first resistance level while the top line is the second resistance level. Kijun Sen: - Acts as an indicator of future price movement. - If the price is higher than the blue line, it could continue to climb higher. If below, it could keep dropping. Tenkan Sen: - An indicator of the market trend. - If the red line is moving up or down, it indicates a trending market. If it moves horizontally, it signals a ranging market. Chikou Span: - A buy signal if the green line crosses the price from bottom-up. - A sell signal if the green line crosses the price from top-down. As a trend-following indicator, Ichimoku can be applied across various markets and timeframes. Emphasizing trading in the direction of the trend, it helps avoid entering the wrong side of the market. With its combination of support and resistance levels, crossovers, oscillators, and trend indicators, Ichimoku simplifies complex analysis, making it an invaluable tool for traders seeking a comprehensive approach to technical analysis. Dive into the charts, explore the strategies, happy trading!
Education
by Vestinda
5
Pro Tip: Trading Ichimoku Signals Confluence on Forex!Here's a great example of a clear uptrend using the Ichimoku cloud indicator. Popularized by the Japanese, I really like the clear trend-following visual that Ichimoku provides especially on the daily and weekly time frames for each it was originally designed by its creator, Goichi Hosoda. Once you have confirmed trends on the higher time frames via Ichimoku, the next step is to confirm entry timings by zooming in to the lower time frames, using your favorite trend-following signals (mine is Trend Pro). This provides great confluence and extra confidence when entering your trades.
Education
by Exponential-X
Making A Signal In Tradingview Pinescript In Under 20 MinutesHave you ever wanted to combine two technical analysis indicators into a single signal to find your own way of making profit? This video is a tutorial where I take two stock Tradingview Pinescript indicators and combine them into a signal that makes it easier for the user to spot with their eyes when an even occurs on a chart. By following along I hope the viewer can learn the basic process of repeating this for their own research!
SP:SPXEducation
by norok
26
Ichimoku Cloud - An All in One StrategyNYSE:GME The Ichimoku Cloud is a collection of technical indicators that show support and resistance levels, as well as momentum and trend direction. It does this by taking multiple averages and plotting them on a chart. It also uses these figures to compute a “cloud” that attempts to forecast where the price may find support or resistance in the future. ~Investopedia.com Ichimoku can be a strong tool (or set of tools, really), to help with entering only the safest plays, as well as providing the confidence to stay in them. Using $GME from 2/8/22, for example: Using the 15 minute chart, you wouldn't expect a long trend from the setup, but it did provide an opportune entry with plenty of confirmation. Lagging Span (Purple) - Lags behind price by 26 bars. Above the cloud is bullish, and below is bearish. Price exited the above the cloud, which is a buy signal. Conversion Line (Green) broke above the Baseline (Red), which is a buy signal. Conversion Line (Green) rose sharply, which signals a bullish trend. Price and all signals occurred above a green cloud, which is also bullish. All these signals together gave confirmation to go long on $GME at around 11:00am EST. For greatest confirmation, a trader should not enter the trade on simply 1 or 2 signals, though this may be useful for scalping opportunities. The true purpose of Ichimoku Clouds is to identify a possible trend, confirm the trend, enter the trade, and stay in the trade as long as the trend has strength. As price remains above the Conversion Line (Green), the Conversion Line is also very distanced from the cloud, and the cloud remains green, the bullish trend is still continuing. Entry levels for this trend would be testing support of the Base Line (Red) and the top of the cloud itself. Though loss of those level indicate the trend is weakening. Try the Ichimoku Cloud on this chart using multiple time frames to see what you might expect price action to do, and how you might trade or avoid certain setups. Have fun! Exit strategies should also be in place, and profits should be taken at predefined levels when trading short-term trends.
NYSE:GMEEducation
by TheGritz
Ichimoku StrategyI have been asked how to use the Ichimoku Strategy so here is a quick breakdown on how the cloud works. Included is a picture Displaying the different aspects of what o look for and the terminology used. I am also including a few links to two youtube videos and websites/articles I have used to better understand this strategy. I have only been using this strategy for about two months so I am by no means a master of it. Also, don't forget to use indicators for strength and to use technical analysis to decide on a trade path. While the cloud works great, trades can be missed due to the following rules. A general rule of thumb, don't take a trade unless your trading with the trend as well as at a good entry as defined further along in this discussion. A few things to remember, never trade if the Chiku Span, Tenken Sen and/or Kijun Sen are inside the cloud. If one of these lines has not crossed over for your trade setup, long or short, don't enter wait until all three pass through the cloud. The indicator as to whether you want to short or long is determined by Senkou A. If Senkou A is above Senkou B, a green cloud, a long position is most desirable, if Senkou A is below Senkou B, a red cloud, a short position is most desirable. Pay attention to Tenken Sen and Kijun Sen as they can help determine a desirable entry vs a non desirable entry. If Tenkan Sen is above Kijun Sen, look for long position. If Tenkan Sen is below Kijun Sen a short would be more favorable. Another aspect to keep in mind for entering a trade if it is passed through the cloud and the original entrance was missed is waiting for Tenken Sen to cross below Kijun Sen and to then start to cross over for a long position. For a short, wait for it to cross above and then cross back over and dip below. sometimes a trade can be favorable when Tenken Sen and Kijun Sen almost meet then diverge apart continuing in the same direction. Chiku Span is useful in seeing the action of the trade. It shows what is occuring in a clearer fashion than studying the chart solely. If Chiku Span starts to move sideways and catches up to the candles, Tenken Sen and Kijun Sen then it might be a good time to look at closing a trade. These are a few resources I have used to help better understand the cloud. www.investopedia.com www.fidelity.com www.youtube.com www.youtube.com
Education
by UmbraAscensor
5
ICHIMOKU AND RVI BEGINNERS PLAY BOOKNow ichimoku is relatively simple look for buys above the cloud and look for sells under the cloud. so when we backtest that over our 5/5 winners with rvi we get two less entrys, however as a beginner to avoid them whipsaw movements that isnt always a bad thing. The cloud itself offers dynamic support and resistance based of averages. price breaking through the cloud signals a breakout and a change in the trend usually. if new to trading I recommend learning about ichimoku on youtube, its not the all time great plan but if you have no plan its better than that. to keep discipline and entry requirements.
TVC:USOILEducation
by UnknownUnicorn6102956
ICHIMOKU AND RVI BEGINNERS PLAY BOOKNow ichimoku is relatively simple look for buys above the cloud and look for sells under the cloud. so when we backtest that over our 5/5 winners with rvi we get two less entrys, however as a beginner to avoid them whipsaw movements that isnt always a bad thing. The cloud itself offers dynamic support and resistance based of averages. price breaking through the cloud signals a breakout and a change in the trend usually. if new to trading I recommend learning about ichimoku on youtube, its not the all time great plan but if you have no plan its better than that. to keep discipline and entry requirements.
TVC:USOILEducation
by UnknownUnicorn6102956
Ichimoku thoughtJust a thought on Ichimoku for new traders. I haven't used this indicator much but after review I was thinking about implementing it into future trade ideas. I believe that it can appear overwhelming at first but if focus turned to one element at a time, I believe it can familiarize a trader with (almost) all the aspects of intro indicators. It can also be successful on it's own (not recommended) to get an overall feel for the logic behind indicators and perhaps help a trader fine tune his/her actual indicators. Ichimoku has been most successful in JPY pairs but since this is a good idea for a DEMO acct you can use it with any pair and backrest it. Curious to hear your thoughts. Again DEMO!!!!!
Education
by PernazzaCG213
Ichimoku | Gunbot trading strategyThis is an example of Gunbot trading with the ichimoku strategy. Gunbot is a multi platform crypto trading bot. About this strategy This strategy will buy when Tenkan-sen crosses up Kijun-sen, it will sell when Tenkan-sen crosses down Kijun-sen. You can configure if the support or resistance at the Kumo level needs be considered for trades to be placed. Settings used This example uses the "pure" version of the ichimoku strategy, meaning both the buy method and sell method are set to use ichimoku . No additional trailing or confirming indicators were used. The following relevant settings were used, all other settings were set to the defaults: PERIOD: 60 TENKAN_PERIOD: 30 KIJUN_PERIOD: 60 SENKOUSPAN_PERIOD: 30 KUMO_SENTIMENTS: true Full disclosure I am the author the Gunbot wiki. This content is only meant as educational material to show an example of how Gunbot can be used, disclosing the full strategy settings used. Disclaimer While every effort has been made to ensure these simulations of Gunbot contain the same logic as Gunbot, they will not always buy or sell at the exact same time or prices as Gunbot (because of TradingView's inability to use ticker prices). This is close as you can get in TradingView to the real thing. Backtesting the past does NOT guarantee profit in the present or future. Please don't use these exemplary settings without doing your own research. Results can vary depending on the chosen market and it's conditions.
BEducation
by gbtcm
1
How To Trade Histogram IndicatorsHistograms such as MACD histogram or my Ichimoku histogram give two kind of trading signals. One is common and is triggered on each price bar. The other happens less often but is extremely powerful. The common signal is triggered by the slope of the histogram. When the most recent bar is greater than the one before, the slope is bullish. This is saying that bulls have the situation in control and that it is time to buy. When the more recent bar is lower than the one before, the slope is bearish. This shows that bears have control and that it is time to sell. When price action is going in a direction but the histogram in another, it tells us that the trend is losing its strength. Rule #1 Buy or go long when the histogram stops falling and rise a little. Use a protection stop under last support. Rule #2 Sell or go short when the histogram stops rising and falls a little. Use a protection stop above last minor resistance. In lower timeframes, it is not be worth to buy and sell every time the histogram reverses. A change of direction of the histogram incline is much more significant on higher timeframes such as Daily or Weekly. Rule #3 Bearish divergence: Sell or go short when the histogram is reversing from its second lower high and price is on a new high. Place a protection stop above the new high. Rule #4 Bullish divergence: Buy or go long when the histogram is starting to reverse from its second higher low and price is on a new bottom. Place a protection stop under the new low.
SEducation
by cyatophilum
What causes cloud's twist?(Handling Ichimoku #1)This is a series about the way to handle Ichimoku. ____________________ Tenkan...Blue Line, average of highest and lowest past 9 candles (Blue Area) Kijun...Red Line, the average of highest and lowest past 26 candles (Red Area) Senko1...Purple Line, the average of Tenkan and Kijun 26 candles ago Senko2...Yellow Line, the average of highest and lowest past 52 candles 26 candles ago (Yellow Area) Chikou...Green Line, the close in 26 candles Cloud means the range between Senko1 and Senko2. *All span includes the current candle ____________________ Cloud's twist means Senko1 crosses Senko2. In other words, the average of a long span crosses the average of middle span. In this chart, from 09 AUG till 14 AUG the price gets lower, so Tenkan and Kijun also gets lower. That's why from 04 Sep Senko1 gets lower. See Pink Circle. Compared to Senko1, Senko2 hardly changes, because the lowest in June remains. Senko1 goes down and Senko2 doesn't change, so the cloud twists. The cloud gets dark. Judging from only the twist, it implies bear. But Senko2 is flat. It means it will be sideways moving around Senko2. Cloud's twist doesn't always imply turning the tide. Ichimoku is simple, but we need to consider in a comprehensive way. Take care.
BITFINEX:BTCUSDEducation
by blockchieko
4
Setting up a trade using Ichimoku on ONT BTC DailySince I learn best when going through examples, here's a trade setup using notes from this article, www.forexstreet.net Pre-flight checklist for trading w/ Ichimoku: 1. Price versus the Kumo = bearish or bullish 2. Type of territory = bearish, normal or bullish territory 3. Tenkan Kijun (TK) Cross = bearish or bullish cross 4. TK Cross signal strength = weak, neutral or strong signal 5. Chikou Span vs Price = bearish or bullish 6. Kumo Future = bearish or bullish TL;DR Bullish TK Cross but: * Market sentiment is still bearish * Weak signal strength (below Kumo) * Bearish Chikou, below price of 26 periods ago * Kumo Future still bearish Hence, no trade atm. Thoughts? Thanks
Education
by cryptotaku
6
BTCUSD - Ichimoku Cloud AnalysisHi All, This is only part of the Bitcoin details analysis, to follow up my full details analysis, click HERE From This charts, similiar to previous charts, Bearish signal found where; 1. Tenkan move further than Kijun, this to indicate more downtrend line 2. Price move below cloud 3. Chikou span cross the price and move below the price 30 days ago. 4. Cloud senkou span A move further than span B This is still part from whole Bitcoin Analysis. if you want to see whole analysis, click HERE . *This TA is for Educational purpose and not a financial advise. If you are happy with my charts and would like to follow more in the future, feel free to follow my profiles.
BITFINEX:BTCUSDEducation
by OPassiveIncome