Ichimoku
Ichimoku analysis is best done daily and weekly charts, Ichimoku indicator includes a number of indicators and different approaches to analysis, forecasting prices. And so it is best done in the context of several large timeframes.
The major signals of Ichimoku indicator can be identified in several points:
- Location of the prices in relation to the "cloud"
Ie if the price is above the cloud, the movement is bullish, if lower - Bear.
- The output signal from the cloud.
Price breaks when "cloud" on the one hand creates a trading signal. If the - then buy signal, if the signal down to sell. Observed price by breaking the cloud is almost the same as it was before.
- Crossing lines Chinkou Span and prices.
If the price goes Chinkou bedrooms up, this is a signal to buy, if the price goes down - what to sell.
- Signal "Golden Cross"
Signal "golden cross" is quite popular among traders. It lies in the fact that the line Tenkan Sen crosses Kijun Sen up. It serves as a signal to buy is bullish.
- "Dead Cross"
Versus signal "cross of gold." When the line Tenkan Sen crosses Kijun Sen down. This is a signal to sell or bearish.
Ichimoku
Another interesting aspect in the analysis of Ichimoku indicator is that when the price went up to the "cloud" comes mainly in the direction point Tenkan Sen.
During the analysis, there are situations where there is a clear trend is up or down. This is one of the downsides of graphical analysis. What, then, to take a decision in this case? What to do to enter or stay out of the market? ... In this case, it is necessary to conduct a comprehensive analysis and the use of other indicators. This will help to soberly assess the situation and make the right decision.
Ichimoku strategy.
Ichimoku Cloud:
- If the price is within the cloud, between the lines Senkou A and Senkou spen Spencer B flat and the market should stay out of the market.
- If the price is above the cloud, it remains clear upward trend and the need to look for a buy signal on smaller time frames.
- If the price is below cloud, sell signals.
Ichimoku
Kijun:
- Kijun Sen's indicator. If the price is above this line, the market will increase. If the price starts to cross the line more than once, the probability of a trend change. Also suschestvudt other signals this supply line. When there is a crossing of the line Tenkan Sen.
If Tenkan Sen crosses Kijun Sen bottom up - it is a bullish signal, if the opposite - that bearish signal.
Tenkan Sen:
- An indication of market trends. If the line goes up, and then maintained an upward trend, but if you falls - the downward trend.
Chinkou Spencer:
- It gives a lot of signals, but they are most important in trading. If Chinkou bedrooms intersects with the price up - Sinai purchase, if the opposite, top to bottom, and then sell signal.
In this article, we discussed the most important issues in the analysis of the indicator Ichimoku. If you use this indicator in your trading, you will find other useful signals that he can give. It is important to use the Ichimoku in conjunction with other indicators.
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