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@  ahmetesk : (20 January 2017 - 12:39 PM) usd nok itm!
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@  Tripack : (20 January 2017 - 12:33 PM) ok in any case better tonclose now and remain flat for monday as well
@  kubn2 : (20 January 2017 - 12:31 PM) @Tripack well there is no impact at all because in speech you didnt have anything new
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@  Tripack : (20 January 2017 - 12:25 PM) it had a 5min positive impact usd note
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Introduction to Ichimoku


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#1 BryanMac

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Posted 07 January 2014 - 11:24 AM

Hey all so I see a lot of people talking about ichimoku, and I thought I would make an attempt to introduce it to you all.  

 

I figured the best place to start is with a little history about it.  Then Ill move onto some videos showing the system and we will break down each indicator, then Ill show you some setups.  

 

I like Ichi because if you know anything about me I love trading with rules, and ichi can be set up as a rules based system, with low, med and high probability trades.  

 

Well I hope I don't bore the shit out of you and you enjoy and learn something.

 

*** NOTE I DID NOT WRITE ALL OF THIS FROM SCRATCH I BORROWED INFO FROM WIKIPEDIA AND SEVERAL OTHER SOURCES***

 

Ichimoku Kinkō Hyō

 

So what the heck does "Ichimoku Kinkō Hyō" mean?

 

Ichimoku means: one glance, Kinko means: equilibrium (or balance), and Hyo means: chart.
 
So loosely translated Ichimou Kinko Hyu means "One glance equilibrium chart" or "Chart balance at a glance".
 
How can you use Ichi?
 
Ichimoku Kinko Hyu is a trend trading chart system that can be used in every tradeable market, if price moves up and down and its tradable then ichimoku can be used to predict its movement in a very unique way.  Ichimoku uses a collection of indicators that work together to create a very visible system that enables the trader to see at a glance the low probability trade set ups, from those of higher probability.
 
Ichimoku shows you the whole story of the market, including trade direction, all the main support and resistance lines and if traded properly, you can find exact entry and exit points. It can also be used on all markets and all time frames.  I use it on a 5 min and 15 min chart personally, but a lot of people prefer higher time frames, but as I have learned over time I am not that patient.
 
Where did Ichi come from. (this is actually a pretty good story)

 

Ichimoku was developed by a Japanese journalist named Goichi Hosoda, to his friends he was also known as Ichimoku Sanjin, which can be translated as What a man in the mountain sees.  He spent thirty years perfecting the technique before releasing his findings to the general public in the late 1960s.  

 

Goichi was an extremely talented yet quiet man, he spent most of his days locked away writing and reporting on the old rice trading markets, he understood how price moved and how it would react around certain areas of a chart, he soon discovered that price followed certain rules and they were due to what we now know today as Support and Resistance. Goichis aim was to create an all in one indicator that would help him view and analyse the charts in more detail but in less time.

 

So back in the 1930 needless to say there were no computers, in order to backtest and develop his system Goichi hired a large group of students who spent over 20 years manually backtesting the different formulas.  Pretty freaking insane huh?  In 1969 Hosoda finally finished the ichimoku kinko hyu charting method and presented his book to the Japanese public, it rapidly became the most frequently used indicator in all the Japanese trading rooms.
 
Even though ichimoku gained such wild popularity all across Asia, Ichimoku didnt make an appearance in the western world till the 1990's and even then because of the lack of translation and information, it was just seen as another weird charting method and most people just didnt have the time or passion to try and learn this strange looking exotic indicator.
 
Only now, in the early 21st century are westerners understanding the true power of this indicator.
 
In closing Hosoda strongly believed that the market was a direct reflection of human group dynamics or behaviour. He felt that human behaviour could be described in terms of a constant cyclical movement both away from and back towards equilibrium in their lives and interactions. Each of the five components that make up ichimoku provide its own reflection of this equilibrium or balance.
 
Next Section we will look at the different parts of the Ichi System.
 

 

 


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#2 BryanMac

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Posted 07 January 2014 - 11:24 AM

So for part 2 we will look at formulas and parts of the ichi sytem, then to put a little twist on it since I hate Japanese and I am visual type person going to rename a few of the lines for you to help you understand them better. ( I Hope)   Ok so here we go!!!

 

The components of the Ichimoku chart are calculated as follows:
 
1. Tenkan-Sen, or conversion line (blue) - (Highest high + lowest low) / 2, calculated over the past seven to eight time periods
 
2. Kijun-Sen, or base line (purple) - (Highest high + lowest low) / 2, calculated over the past 22 time periods
 
3. Chikou Span, or lagging span (white) - The most current closing price plotted 22 time periods behind.
 
4. Senkou Span A (green) - (Tenkan-Sen + Kijun-Sen) / 2, plotted 26 time periods ahead
 
5. Senkou Span B (red) - (Highest high + lowest low) / 2, calculated over the past 44 time periods. Plot 22 periods ahead
 
6. Kumo  the cloud which represents current and historical price action. It behaves in much the same way as simple support and resistance by creating formative barriers. The "cloud," known as the Kumo, is the space between Senkou Span A and Senkou Span B.
 
Ok so if you are completely confused hang in there I am going to try and clear all that up for yea.
 
So 1st what I did to help me understand it better was I renamed the lines to something I could relate to.  I am a single dad so I end up watching a lot of cartoons.   
 
I will be keeping the first letters the same just for convenience. 
 
 
1. Tenkan-Sen, or conversion line (blue)   going to rename this one Timmy Turner (Fairly Odd Parents)  or Timmy for short.
AnA36mA.png
Timmy is young and he moves fast!!!
 
2. Kijun-Sen, or base line (purple)  going to rename this one Mr. Krabs! 
wOA1HRj.gif
 
 He is older and does not move as fast as Timmy.
 
 
3. Chikou Span, or lagging span (white)  This one we will be calling Casper.
F87p7BU.jpg
 
Casper is a friendly ghost and he will help you decide when to enter a trade.
 
4. Senkou Span A (green)
 
5. Senkou Span B (red)
 
6. Kumo  the cloud
 
Four,five, and six I will refer to them as the cloud for most of the video portion of this, but it is important to know how the could is formed, the space in between Span A and B.
 
So that sums up part 2, in part 3 Ill switch over to video and will go over each part of the ichi system, then well put it all back together and take a look at the rules for trades and some setups.

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#3 BryanMac

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Posted 07 January 2014 - 11:24 AM

Part 2 Video as promised, all i will be covering is the various parts of Ichi, I will be getting into set-ups next video, and then we will look at ichi as related to trading bins.

 
Indi pack can be found HERE
 

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#4 BryanMac

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Posted 07 January 2014 - 11:24 AM

Ok second video to wrap up the series.
 
Quick Review on the rules.
 
TREND TRADING ONLY!!
 
1.  Crossover occurs:   Blue on top of Purple is a Buy/Call.  Blue underneath Purple is a Sell/Call
 
A crossover is not a trade it is just a signal to check the chart.
 
2.  Check Casper  the white line does it meet rules?
 
3.  Check the Cloud has it crossed over to green for a Buy/Call, or Red Sell/Put.
 
Once all three rules are met then take your trade if not PASS.
 
I hope you enjoy the video and if you have any questions please feel free to ask, and please post your charts would love to see how you are doing.
 
Ichi can also be used for reversals but we will save that for a later date, take it one step at a time.
 
 
 
Remember the UJ chart from the video here is what it looks like now, if you would have jumped the gun horrible trade.
 
usdjpyi-m5-tw-corp.png
 
And here is the USD/CAD trade from video 30 mins later clean ITM/Buy
 
usdcadi-m5-tw-corp.png

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#5 dwalther2

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Posted 07 January 2014 - 01:53 PM

Been getting into ichi of late and was looking for a soup to nuts type of training on it. Looking forward to your posts and thanks for starting this!



#6 BryanMac

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Posted 07 January 2014 - 02:13 PM

I always try and keep my vids simple and easy to understand so hopefully ill be able to for Ichi also.


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#7 acuter

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Posted 07 January 2014 - 04:16 PM

Very  nice  addition  to  the  Ichimoku  arsenal ;  BryanMac ,  AKA  Errol Flynn  as  Robin Hood .

 

For  those , still  interested  ( and  you should  be ) , here  is  an  excellent  description  of  the strategy--

 

www.asiapacfinance.com/trading-strategies/Ichimoku_trading_system 



#8 BryanMac

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Posted 07 January 2014 - 05:08 PM

He was bad ass as Robin hood :) 



#9 acuter

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Posted 07 January 2014 - 05:09 PM

BryanMac -    Glad  to  see that  you  are  a  proponent of Ichimoku , as  are  tripack , swede ,  Kostasze , et  al  . For  awhile there , I  thought  I  was  the  only  one   proselytizing  about  the  strategy . Someone  named  " jxr "  is  a  supporter, as  well ;  but  he  seems  to  have  disappeared  from  the  Forums  !  I  am  sure  that  there  will  be  more  supporters , in  the  future , as    information , ( like yours  ) ,   gets  out   to  traders , and  neophytes ; who  have  the  wisdom  to  recognize  its value  .   



#10 BryanMac

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Posted 07 January 2014 - 07:32 PM

Good show Bryan...I was thinking of doing the same thing as we used to have a lot of participation in the other room, and I think it is a method much overlooked........I just want to say this......there are ways to tweak the Ichimoku to work very nice on bins also...let me show you what I mean..

 

First...We all know that a daily high or low, is much stronger than an hourly high and low..   an hourly high or low (or support/resistance zone) is much stronger than a 5 min and so on.

 

Most bin traders use the 5 min chart.....but often miss the big picture because their chart management does take some time and effort to mark all the nuances from the bigger time frames and often things like BRN's and major support/resistance zones are missed.

 

For example....here is a Jpy hourly chart using Ichimoku.....and earlier today there was the usual pull back to the Kijun line (blue) one of the stronger zones. and a good place to consider a long (call) because of the overall trend (long long long) over the past few days.

 

usdjpyh1_ichy.jpg?noCache=1389138556

 

But if you where trading the 5 min chart, and the standard settings on the Ichimoku you would have seen this....

 

usdjpym5.jpg?noCache=1389138816

 

a real confusing mess, right?

 

 

So, here is the solution.....I superimposed the 1 hour Kumo, Tenkan, Kijun and Chinku onto the 5 minute chart....Now we see at least 7 real nice Bin entries, all touch trades with 5-10 min expiries.....even 2 min trades when testing the red Kijun.......

 

usdjpym5_ichy_5.jpg?noCache=1389138598

 

 

That has me intrigued how do you superimpose the 1 hour on the 5 min?



#11 Julienh

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Posted 08 January 2014 - 07:31 AM

@Bryan

 

If you use Ichi default settings on 5min chart : 9-26-52

 

You have 12*5min on 1hour chart, the settings for 1hour ichi on 5min chart would be : 9*12 - 26*12 - 52*12

 

108 - 312 - 624

 

I found this on ForexFactory :

 

Hello,

If you choose for 15M ICHi setting = 8-24-48

in 1H (4 x 15 M) ICHI setting = 32-96-192 (8x4 - 24x 4 - 48x4)

in 4H (16 x 15 M) ICHI setting = 128-384-768 (8x16 - 24x16 - 48x16)

 

Swede correct me if I'm wrong ;).

 

'Ju.



#12 BryanMac

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Posted 08 January 2014 - 11:44 AM

Yep...Bryan just set your Ichimoku at 234....312....624.....this will give u the 1 hour cloud on the 5 min chart...

Thanks sir Have a list of settings but I don't mess with it since I trade Spot only with Ichi but might be fun to play with.  



#13 Julienh

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Posted 08 January 2014 - 11:58 AM

234....312....624? Not 108 - 312 - 624?



#14 BryanMac

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Posted 08 January 2014 - 01:19 PM

I dont know if you saw my post on BOD  

 

http://www.binaryopt...0/#postid-37147

 

So right now what im focusing on is a way to teach it that everyone's charts will be exactly the same and trade it the way it was originally designed to be traded, then after people get the hang of it move on to more advanced principals.   Right now I am just hoping to get some people interested by showing that it is really not all that complicated and is a great way to trade. 

 

But I want to take it in baby steps so people don't shy away.

 

Don't get me wrong though I learned it they traditional way so I am more than open to see how else to use it and love your suggestions.  There is always room to learn!


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#15 BryanMac

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Posted 08 January 2014 - 01:54 PM

Ill be trying out your stuff over the weekend on MT4 simulator though kinda excited.



#16 dwalther2

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Posted 08 January 2014 - 06:49 PM

Thank you for putting this thread back on track Bryan. It seems these kinds of threads always get derailed with this or that additions and subtractions. Not that they arent good ideas, but i think for the good of the thread the info presented should be as it was meant to be from the beginning. Just my thoughts. :)


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#17 swede

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Posted 08 January 2014 - 08:45 PM

 d



#18 swede

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Posted 08 January 2014 - 09:55 PM

d



#19 Julienh

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Posted 09 January 2014 - 07:25 AM

I really like ichimoku, I have it on my charts since long ago, after a while it is easy to read. But I never tried puting 1hour settings on 5 min charts.



#20 Julienh

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Posted 09 January 2014 - 02:21 PM

The only problem I see with 1hour Ichi on 5min chart is that chikou is too far on the left. Otherwise their are great trades opportunities with this setting.






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