You can get some decent returns if you carefully select the best traders. Among the many books written on Ichimoku, there is one I definitely recommend if you want to take things further. It will provide you with a lot of very valuable strategies, on all time frames. It has been written by Karen Peloille, a french specialist who has taught tons of traders in banks and financial institutions worldwide. She is very renowned, straight to the point and known to be one of the most consistent traders around.

Find her book here , enjoy your reading. As a bonus, you can download this post as a free 15min per Day Ichimoku Strategy PDF Guide. I do not collect emails, will not spam you with unsolicited content, and you can download my PDF with no strings attached. How to Start Trading: The Definitive PDF Guide. To me the best timeframe is the H4, but the system works well on Daily and Weekly. Hello Susan, In my day job has left me very little time to trade, I now own quite a large portfolio of dividend stocks on autopilot.

Hopefully I can revert back to more active trading in the upcoming months. Concerning the above strategy, it was definitely very good in times of trending markets and quite challenging in ranging situations, so as always the Money Management would be the key.

Safe trading. Hi Johan i m begginer trader can you send me your strategy indicator setting in MT4 screen shot i need help due my english not very well. Hi John Great read and its nice to find a strategy that works i have been trading for 9 months and dropped across the cloud and found that i had a interest in it then dropped across your blog i will now be trying out your strategy on my demo account i trade oil and nat gas thank you for a great read and the information.

Hello John, I wonder to know if you could share your annual performance last year. Including your initial investing capital. Hi Adrian, thanks for such a great comment. All the best. I just found your Ichimoku Strategy and yet found it is not just a simple and easy to use guide but also covered some of the basic functions of Ichimoku Indicators. My name is Adrian Susianto. I am from Sidoarjo city in Indonesia. I am just a full time job person which passionate with stock and derivative trading.

I have stock trading but derivative forex is what I am very fond of to continously learn it. Back to several months ago, I just changed and developed my trading strategy using Ichimoku. And I found it more simple to replace my system with Ichimoku. And Ichimoku is now consist in my third screen to make decision whether to open or to close position s. What you explained here is similar in what I was doing to analyze. It is a good book to develop Ichimoku system by understanding the deeply ground of Ichimoku, but I need more practical analysis.

PS: I am glad to read that your are still active in this blog when saw your last reply were on February It means you are still active trader 😀.

Thanks a lot. Good luck with your trading. My advice would be to open a Paper Trading account at an online broker and test the strategy before you take any further step. My article on 20 ways to learn stock trading can maybe help you on your journey. Oscar, thank you for that. Actually my success rate is good, the difficult thing is to find the right market conditions, this system really works best when the asset is in trending mode.

If in a range, you will struggle and then only an ultra tight money management can save you. Thanks for the comment. You can actually trade mostly any market with this system stocks, forex, commodities, indexes. Thanks for the informative article. I always want to make some money in the stock and Forex, since several of my close friends made a lot of money by trading stocks and Forex.

When we meet, they always discuss the market and I thus learn something from them. Now you introduce a solid system for people like me to follow and I bookmark your site and will come back to study more.

It is so nice you have a complete system that track the market conditions, suggested entry point, exit point, support, and resistance levels. All these are closely monitored in association with past and future market level. Like you , I have a full time job and the time you did research are perfect for me. So nice I am going to this chance to learn from you.

The strategies you employed are actually unique in its own way. Anybody who have traded forex before should be able to use this. This reminds me of when I traded forex 10years ago. When I was looking for a legitimate way of earning money online. I traded with fxopen brokers. Kijun-Sen performs the same calculation, the highest high plus the lowest low divided by 2 but over a longer time period, 26 days. When the current price is above the Kijun-Sen line, we expect the move to continue higher.

The Kijun-Sen is normally displayed as a blue line. One application of the Kijun-Sen is to consider it as naming a trailing stop.

Kumo or the cloud is formed by coloring in the space between two other indicators, defined below. The cloud borders form both current and future support and resistance levels. A fat cloud indicates big prices changes over the time period included, while a skimpy cloud implies a more easily broken support or resistance. A fat cloud gives you confidence that the price will not break support or resistance.

A skimpy cloud might break and here is where conventional candlestick analysis comes in handy — you examine the candlesticks breaking into the cloud to see if they are continuation or reversal candlesticks. A reversal candlestick like a shooting star would alert you that the move is ending. It takes the Tankan-Sen plus the Kijun-Sen divided by 2 and projected out 26 periods. If your price lands above the topmost span line, the top edge of the Kumo or cloud, it becomes support.

Senkou Span B is a longer-term indicators, also called leading span, measured by taking the highest high plus lowest low divided by 2 over the past 52 time periods and projected out 26 periods ahead. It is logical that when the shorter-term span, Span A, is above Senkou Span B, the price trend is rising. The opposite is true when Span B is below Span A. The process of switching from bullish to bearish is named a Kumo twist and can be useful in predicting a change in direction, similar to a moving average crossover.

Now Ichimoku is going to get a little freaky. To the clouds formed by spans described above, we are going to add another indicator: the Chikou span. It may seem silly, but even such a lagging indicator as this has powerful predictive value when it executes a crossover. But like any moving average, a crossover by the Chikou line of the current price or the span or both is signal of directional change. Chikou is usually displayed as a green line. The cloud and the Chikou line together give you the condition of the market at a glance.

When the Chikou line is above the price bars, sentiment is still bullish. It should be obvious that the trend is bullish when the price is above the cloud and bearish when the price is below it.

When prices are within the cloud, you fall back on candlestick analysis, as noted above. Secondly, the fatness of the cloud is an indicator of the robustness of the trend. A far cloud should give you comfort that you have identified the direction of the trend correctly. And the display methodology is impossible to misinterpret because support clouds are colored a different color from resistance clouds.

Therefore, when the color of the cloud changes from one color to the other, you have confirmation of a change in trend direction. In practice, simply noting the direction and the slope of the Chikou delivers a forecast for the direction of the next price move.

This works very well in Forex. Some analysts go so far as to define the clouds as signifying patterns, including Elliott Waves , and to use the size of the waves to determine price targets. In the book Ichimoku Charts , Nicole Elliott describes how to use Ichimoku to derive a timespan principle that projects the next turning point, which is named kihon suchi in Japanese.

The other two major parts of the Ichimoku Kinko Hyo more or less act as moving average crossovers. Or you will once you see it. At No Nonsense Forex, it will forever be Aqua colored so we can easily identify it. The long trades are not allowed unless price is over the cloud, and short trades are not allowed unless price is below the cloud. Price was also below the Cloud at the time, giving us the green light to take the short trade here. In basic Ichimoku strategy, these rules must all come true before entering a trade.

And in the above chart, there were no other trades to be had beyond the one I pointed at, because not all of the criteria was ever successfully met. You will notice how the Chikou Span ends right at the close of the most recent candle, and 26 candles back.

The basic strategy here is to look for a trade entry first, and then look back to see if the Chikou allows it. This is an extra layer of discipline Ichimoku traders will often add to the equation. Some people drill down really deep on the Chikou Span. We do not do that here, but plenty of information is out there online if you feel the urge.

Too see if this is recommended by No Nonsense Forex , see the strategy video towards the bottom of this blog post. As noted before, this is a great system for brand new traders, because true trading discipline is something they all lack, whether they want to admit it or not.

Are you looking for a simple 15min per day Ichimoku Trading Strategy? A system that has been quite successful for me over time. I have used the basics of his system and customized it to add a few features. The system relies mostly on the Ichimoku Kinko Hyo system. It is a simple system based on a few indicators that will tell you in a second whether you have a trade setup or not. I will not teach you to trade Forex. Now, let me take you through the characteristics of this system, which is basically a momentum catching Ichimoku strategy.

To trade this strategy easily, I recommend you setup your charts on the free trading platform at TradingView , by far the best charting platform. Once early in the morning around AM GMT and in the evenings around PM GMT. For that kind of trading, the H4 is ideal. It will give you a reasonable volume of trades and a good grip on the momentum moves without forcing you to keep a constant eye on your trades. Since this strategy aims at catching trending moves, we are looking for clean charts.

We want to avoid cluttered pairs where volatility is high with unclear price directions, violent swings or spikes, …. The system uses five indicators. That might seem like a lot, but they all have a purpose.

In fact, they are a tremendous visual aid for reading graphs and to me they make things much simpler. The Ichimoku Kinko Hyo system is a very elaborate but simple system.

It was devised by a Japanese journalist named Goichi Hosoda in the late s. He released it to the general public in the late s after 30 years of testing and improvement. It is a very complete system giving an instant view of market conditions. The system provides entries, exits, support and resistance levels and key past and future market levels. The original system consists of five lines named Tenkan-Sen, Kijun-Sen, Senkou Span A, Senkou Span B and the Chikou Span. The Ichimoku cloud is the area between the Senkou Span A and Senkou Span B, it is usually coloured.

Below is a representation of the system and the five lines that compose it we only use three of them :. The Ichimoku system is a moving average based trade identification system.

It is quite elaborate and novice traders might find it difficult to read. However, in our trading system we are only using two of the core components. The Kumo cloud and the Kijun Sen. Why these two? Because the information they provide is sufficient for the kind of market conditions we want to identify.

The Kumo cloud is the area between Senkou Span A SSA and Senkou Span B SSB. Here are the formulas :. Moving averages are the single most used indicator in trading. However, they do not predict future price movement, they just represent the current direction of a trend. There are many different forms of moving averages: simple SMA , exponential EMA , weighted WMA …. In this case, we use the 21 period EMA. Exponential moving averages reduce the lag by giving more weight to recent prices.

It also tends to be one of the most widely used moving averages. A lot of traders are always going to react around it. In this system, the 21 EMA is used to confirm a trend.

The RSI is the Relative Strength Index. It was created by Welles Wilder in It is an oscillator type indicator that moves up and down on a scale from 0 to The RSI identifies the speed and change of price movements. In the standard setting of the RSI, the average gains loss are calculated by adding all the gains losses for the past 14 periods. I use it with a setting of 7 periods in order to trade quite a short cycle. Occasionally I will set the RSI to 4 periods if I want to make sure I detect an earlier signal.

Fractals were developed by Bill Williams as part of a system that he created mixing the Chaos Theory with Human Psychology. Taken alone, fractals are indicators that actually break larger trends into smaller and simple reversal patterns.

A fractal is composed of five or more bars, and there are two types of fractals:. The fractals are turning points. A bit of trader discretion will always be necessary in any system Rate announcements, central bank conference, macro-economic figures release, ….

For a long trade , the following conditions need to be met:. For a short trade , things should be the exact opposite:. I think that can be ok if it remains in a reasonably tight zone around the 50 level. However all other conditions should be met, especially the slopes on EMA and Kijun. That is left to trader appreciation but I have found to miss significant market moves if I get too strict on an exact hit of the 50 mark. Again, it is a simple and straightforward rule.

The reason for using fractals is that they represent key short term swing highs or lows. And the same goes for a short trade. If a down fractal is broken by an upward move then my conditions for a downtrend are no longer met. I usually trail my stop to the next fractal.

So I try to NEVER break that rule. I try to aim for 3R usually, which means 3 times my risk level. Reading the market with this system is extremely simple. You only need a few seconds on each pair to know if you have a trade. You might need a little more time if you have open positions. You can give it a go and give me your feedback. I recommend trying their CopyTrading function. You can get some decent returns if you carefully select the best traders. Among the many books written on Ichimoku, there is one I definitely recommend if you want to take things further.

It will provide you with a lot of very valuable strategies, on all time frames. It has been written by Karen Peloille, a french specialist who has taught tons of traders in banks and financial institutions worldwide. She is very renowned, straight to the point and known to be one of the most consistent traders around. Find her book here , enjoy your reading. As a bonus, you can download this post as a free 15min per Day Ichimoku Strategy PDF Guide.

I do not collect emails, will not spam you with unsolicited content, and you can download my PDF with no strings attached. How to Start Trading: The Definitive PDF Guide. To me the best timeframe is the H4, but the system works well on Daily and Weekly. Hello Susan, In my day job has left me very little time to trade, I now own quite a large portfolio of dividend stocks on autopilot. Hopefully I can revert back to more active trading in the upcoming months.

Concerning the above strategy, it was definitely very good in times of trending markets and quite challenging in ranging situations, so as always the Money Management would be the key. Safe trading. Hi Johan i m begginer trader can you send me your strategy indicator setting in MT4 screen shot i need help due my english not very well.

Hi John Great read and its nice to find a strategy that works i have been trading for 9 months and dropped across the cloud and found that i had a interest in it then dropped across your blog i will now be trying out your strategy on my demo account i trade oil and nat gas thank you for a great read and the information. Hello John, I wonder to know if you could share your annual performance last year.

Including your initial investing capital. Hi Adrian, thanks for such a great comment. All the best. I just found your Ichimoku Strategy and yet found it is not just a simple and easy to use guide but also covered some of the basic functions of Ichimoku Indicators. My name is Adrian Susianto. I am from Sidoarjo city in Indonesia.

I am just a full time job person which passionate with stock and derivative trading. I have stock trading but derivative forex is what I am very fond of to continously learn it. Back to several months ago, I just changed and developed my trading strategy using Ichimoku.

And I found it more simple to replace my system with Ichimoku. And Ichimoku is now consist in my third screen to make decision whether to open or to close position s. What you explained here is similar in what I was doing to analyze.

Ichimoku is the only charting technique that projects support and resistance into the future. Later we will check how it can be used in trading stocks and Forex. Break from the cloud. The fractals are turning points. To me the best timeframe is the H4, but the system works well on Daily and Weekly.

Categories:

• Forex
• Binary Options online
• Forex Brokers
• Binary Options
• Forex Bitcoin