Ichimoku forever

Wolfan, your idea it's good, if you see a good Buy Signal you can go for some pips to 1.1100.

About the Kumo sentiment, sorry was type mistake I mind D1 and I wrote H1,
in your chart H1 the BULLISH sentiment it's clear and in the DAILY the opposite sentiment... Sorry for my mistake

Hi Superscalper,

We are generally trading opportunities that arrive on the 15min, 30min and 1hr charts. We confirm these against the longer TF charts to make sure they support the trade direction as much as possible and we then use the 1min and 5min charts to select an entry point that allows us to have the minimum drawdown possible.

I have attached 2 charts for reference, 5min and 1hr for current G/Y chart. Let us assume that the price has broken down through the kumo on the 5min chart (let's say 149.90) and that we have as strong sell signal on both charts. Now we need to look where we put the stop loss if:

1. we entered on the 5min
or
2. we entered on the 1hr

Basically by entering on the 5min chart you would put your SL on top of the kumo meaning that it would be approx 20pips above the current price. Because we are trying to get 50 pips this means that we can afford to lose two trades and we are still going to make money with one winning trade. That's a 30% success rate and still making money.

If we enter on the 1hr the SL at the top of the kumo is approx 175pips so we have to win 4 out of 5 trades to break even. And in reality no one gets 80% of their trades correct - no matter who they are.

Now sure there is always the arguement that we should just hold the trades longer and take maybe 200pips minimum however we like to be in and out of the market within a few hours generally and the large drawdown possibility ties up equity that we could be using in other trades.

It's the underlying money management concept that drives this system that we use in other words.

Also, as this system was created with the E/Y in mind 50 pips is a realistic amount that you can foreseeably achieve from a trend on a regular basis. The E/Y seems to trend from 75-125pips almost several times each day so it keeps plenty of opportunites open to make cash. If you hold the longer positions it will likely be days before you see a positive return and that's assuming you are on a winner.

Depending on which pair you trade you may find that you can set an even larger take profit amount (G/Y for instance tends to move 125-200pips in trends on a regular basis) others like the U/Y tend not to move so much so you may have to reduce your expected TP amount.

Anyway I have been very general in my explanation but it's pretty simple really.

If you would like to discuss this further send me a private message on forex factory so that the thread is left free for trade discussions.

All the best with you trading and hope to see you here often.

Cheers!

Soldiers

here are the signals for today , i took those deals on my practice account , due to my tide Risk management i didn't work today because of the important news
please feel free to ask about anything

wishing you all the luck

Vic

From the top of the mountain we can see the entire valley. All the troops...all the arsenal...all the supplies. We can then make our decission to fight or flee. (weekly/daily)

From the valley all we see is our challenge and calculate our worst outcome...how many men...how much supplies... and at what cost to win(4hr)

Face to face...knife to knife...friend to foe... we fight...to stay alive...not knowing the next split second of our destiny...a bloody mess. (50tic,1min,3min,5min,7min etc.)

I'd rather be on the mountain top.

Hi Wolfan,

Thanks very much for the Ichi monitor, and I was wondering if the the color coding convention for the arrows can be changed, or made user adjustable. For me it makes it easier to see the sentiment if all the bullish sentiment were up arrows with different shades of green for strength, and the bearish sentiment down arrows, with different shades of red for strength and the neutral stay the same.

I hope this makes sense, and thanks again for providing us with this indicator.

Thanks to all the members here, this is my favourite thread in FF.

LOL... I like your thinking...

Well it looks like that pseudo short on the USDJPY last night would have made me pips... ah well.

Good morning folks!

Here is my updated GBPUSD Weekly Analysis

Hi Dr Washo,

I am assuming you're also having a look at the charts at the moment.

Do you see any pair/s promising a trade in the next couple of hours?

Cheers,

Giny

Sending on behalf of wolfan

USD CAD Long position

sweet dreams my friend

I'd caution against shorting the USDJPY at this stage, even though it appears in prime position to do so... the price level is however a very strong support zone, so unless there's a mini run on the dollar I'd be thinking about trading the bounce if you're game.

Good Morning Doc

was another crazy NY day today , i was out due to the important news , hope today will jump with a good trend

cheers Doc

Well if there is no strong signal again there will be no deals , but if there is a signal then why not we can see 91.70 area and with a break to this area the whole way will be opened

cheers Doc

That's true... as a matter of fact I just entered short We'll see what happens!

God bless,

Dr Washo

OMGG how come u enter now this is a daily support Doc it will never be broken hahaha am kidding Doc , trust the signal set ur TP and SL and it is all in the hand of god
wishing u all the luck doc

Here are the charts (btw ignore the purple line):

Dr Washo,

I am waiting for a significant break of 92.00 followed by a bounce back up and off the 92.00 level and then I may well join you in this one.

Giny

Off topic post here, but I think a useful one. www.dshort.com is a site I frequently refer to in my travels. Attached is a their chart which shows seasonality in the S&P500.

I do not really understand the connection between forex and the stock markets (was told that when euro indices like DAX go up, EUR should be strong?).

Anyway, have a look and keep this in your background.

Edit: Trying to answer my own question. Refer to commentry by TyroTrading:

"Having said all of this, I read a very interesting piece by Kathy Lien (who is, of course, one of the best currency analysts around) talking about the correlation between U.S. equities and the forex market. The numbers she stated were absolutely astounding.

Siding with equities may be the best bet for currency traders. Since the beginning of the year, the EUR/USD has had an 82 percent positive correlation with the S&P 500. Even though the Dow Jones Industrial Average closed positively on Friday, the S&P 500 closed marginally lower, which is in line with the sell-off in the EUR/USD. Earning season has boosted the correlation to 91 percent and with close to 20 percent of the companies in the S&P500 expected to report their results next week, we expect this correlation to hold. This includes some major companies such as Caterpillar, Yahoo, Morgan Stanley, eBay, Microsoft and Wells Fargo.

Did you catch what she said there? She said that the correlation between the EUR/USD and the S&P 500 was up to 91%! That means where the S&P 500 goes, the EUR/USD goes and vice-versa. And because of the decreased summer volatility in the forex plus the number of companies reporting earnings, the S&P 500 is basically leading the forex markets around by the nose."

Chngster

Vic will sleep big boyzz
leave you the dragon session to enjoy it

cheeers

Hi guys I am home sick from work today so I have a chance to trade Tokyo. I have been sneezing blood and having trouble swallowing. Go see the doctor today

During crazy market conditions dynamic systems like Ichi can suffer. We should try and avoid signals like this at least until price below M1 kumo.

I include another traders advice for today:
Shorting eur/yen only allowed below 132.00 and long aud/jpy only allowed at or above 77.00 at this point of time