Saturday, September 3, 2011

Ichimoku Indicator

Ichimoku Indicator

When I began my acquaintance with the market Forex, I used the most common indicators such as stochastics, RSI, MACD. I tried different settings, different timeframes, but the result, which gave me to, and not achieved. My search continued and learning indicators, and here I stumbled upon Ichimoku indicator.

In the beginning it seemed to me quite difficult and cumbersome, but after I read it all the operating principle was not such a complex.

On the Ichimoku Indicator

Ichimoku indicator was developed in the middle of last century, a journalist from Japan, who wrote under the pseudonym Ichimoku Indicator Sanjin (if in Russian "look of a man from the mountain"). Therefore, the indicator is named after him: Ichimoku or Russian, "one look". I think the title somewhat justifies his work.

In the picture shown Ichimoku indicator. It consists of 5 lines. I will write what they mean, ideally, and will tell you how I use their testimony in their work.

1. Ichimoku Indicator The red line (Tenkan-sen). Fast line is calculated (maximum + minimum period for the period) / 2. By default, the settings display period = 9.

2. Ichimoku Indicator The blue line (Kijun-sen). Same as Tenkan-sen, only the period is 26 by default.

Intersection of these two lines mean change in trend, and according to their position can be judged about the trend: red bottom - in the market bears, The blue bottom on the market bulls

For me, these lines are not only guide the trend, but levels of support / resistance.

3. Ichimoku Indicator The green line (Chico bedrooms). The closing price of the current candle shifted during Kijun-Sen. I'm on the line to draw no attention. It just povtoyaret schedule information is useless.

4. Ichimoku Indicator The next two lines form a cloud. I see the cloud as a support / resistance levels, and the yield trading tool from the cloud in any direction as the beginning of a trend. Please note that the cloud is very strong support / resistance. At their best to put the foot break and enter into the transaction.

The following Ichimoku Indicator example chart EUR / JPY on the H4 timeframe. It is clearly seen as the indicator lines act as resistance for the correction of the trend.

Preferences Ichimoku Indicator and timeframe

Not in the nature of the Ichimoku Indicator, which could be set for any currency pair, and his testimony would have been correct. For this purpose, each indicator has its own settings, indicator Ichimoku no exception. We can change the Ichimoku only 3 parameters: Tenkan, Kijun, Senkou. Their value - is the number of periods in the formula rachetnoy lines I have described above.

Changing these values ​​completely changes the indicator.
For example (GBP / USD, H4):

Tenkan = 9
Kijun = 26
Senkou = 52

Tenkan = 7
Kijun = 28
Senkou = 42

As you can see the Ichimoku Indicator are different. The values ​​of the second version I use for the analysis of GBP / USD at H4. This value I picked myself, the experimental method. For the day at the pound for example, I tend to default settings. This suggests that we should try different settings for different pairs and Ichimoku Indicator timeframes.

Apply Ichimoku Indicator recommended timeframes in H1 above. I use it at H4 and D1. On the M30 such as too much noise and signals Ichimoku Indicator generally worthless.

Ichimoku Indicator Example use

For example, the use of open trade indicator for EUR / JPY to BUY.

Ichimoku Indicator Decision:

1. Couple passed two lines of resistance as an Ichimoku Indicator: Tenkan-sen and Kijun-sen
2. Pair tested Kijun-sen and the bottom support held.
3. Take I put on the cloud
4. Stop put below the line Kijun-sen
What effect will this transaction otpishu flood in this topic

In conclusion I would say that Ichimoku indicator should be part of the trading system, along with other indicators or oscillators. Alone, I do not recommend its use. About the indicator can be found in the book Terekhov AU "Indicator Ichimoku as the basis of the trading system"

other posts
- How To Trade In Forex With Macd Is Bullish
- Integrating Macd Crossover With Other Indicators
- Macd And Stochastic Line Up Stocks
- Macd And Stochastic Working Together
- Macd K Line


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