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indicators - magic tool or NOT?

  • #21
  • Apr 24, 2012 4:03pm Apr 24, 2012 4:03pm
Hi sammy

The indicators can give you clues about market movements and behavior but there is no security method that you behave on the market as to make an investment, in short all investments have a risk margin in them

Regards
  • #22
  • Apr 26, 2012 4:53am Apr 26, 2012 4:53am
Exactly, very good example of how you can use Ichimoku.

Also, it shows exactly the point where I used to struggle: Some traders do enter right after the Tenkan - Kijun crossing, but that's only the first signal. I am trying to learn patience and wait for the retracement first, and when it falls back I enter and go all the way down (for a short as in your example). But sometimes, even if a TxK happens above the Kumo (for a Short, vv for long), it seems that retracement never comes and then I start to doubt: enter or not. When I enter, price to retrace. And if I don't...I see money flying away. So I implemented trend lines and drawing of resistance area's. It looks like its helping me quite a lot.

Quoting 4xpipcounter
Notice on the chart the candle behavior with the clouds once entered, then where it heads. The rule is when they enter atone end they will at least touch the other end.
There is also a way to trade the exception, but for now, I won't get into that part of it.
The real point I wanted to get into is how the ichimoku shows, in advance, the trend. After all that is what we always look to trade.
Look to the west and notice the encircled area. Once the candle bridged the tenken and kijun. Price action was still above the cloud after the cross, but...
  • #23
  • Edited 5:16am Apr 26, 2012 4:57am | Edited 5:16am
If I'm not mistaken, the standard settings have to do with the traditional amount of trading days in Japan. There's indeed some math to it. One should indeed have enough with the Ichimoku, the translation itselfs explains it: "all in one glance - chart". And I think that's pretty much it.

BTW I am not trading fx but the emini, so I'm not sure if this belongs. I ended up here googling for Ichimoku and found this thread. because I am not trading fx, I have not included charts, but if you're interested, you can find them at chart.ly or google bataviatrader.


Quoting 4xpipcounter
The ichimoku cloud is actually 5 indicators in one-- tenken, kijun, chinkou, A kumo, B kumo.
They are all highly significant, and when used as a confluence it is a highly powerful indicator.
I don't want to just take over, or bore anyone. With the op's permission, I'll continue. There is so much to learn about this indicator. The guy that introduced it to me 5 years ago uses it as a standalone. His idea was that you have a 5-in-1 indicator. How many more do you need?
There is also sound logic behind why the default settings are 9,26,52. Needless...
  • #24
  • Apr 26, 2012 6:05am Apr 26, 2012 6:05am
I think an intelligent use of Market, price and sentiment indicators work well.. it gives 80% idea about the further continuation of the move or its reversal in the near future.
  • #25
  • Last Post: Apr 26, 2012 2:33pm Apr 26, 2012 2:33pm
Quoting 4xpipcounter
Another thing I should have pointed out from the previous post is to watch the price once that purple line is broken. It marks the swing low, and it is also a 1-2-3 pattern. When a 1-2-3 forms going the opposite way, once the 2 is broken, be ready for a powerful move. Combine all this with the TL, Price will break the 2 and the TL at the same time, so it will add fuel to the move.

BTW, this is not stuff in the rearview mirror or a bunch of conjecture. This is live price action showing in advance what will happen.
As far as Indicators go, this one happens to belong in the rare few, making it reallly worth your time. BTW, nice show and hope the newbies reading this thread are not too confused.
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