Ichimoku - page 2

Sergey Golubev
Moderator
122903
Sergey Golubev  

The most strong signals for this indicator were observed on W1, D1 and H1 timeframes as the following:

- the price curve is crossing the Senkou Span B line breaking this resistance line;

- Chinkou Span line signals;

- 3 line signal (Tenkan-sen, Kijun-sen and Senkou Span B lines are going in horizontal way above each other);

- gold and dead crosses.

Sergey Golubev
Moderator
122903
Sergey Golubev  

We will describe everything about this indicator. Step by step. In the next few posts we will know how to select the T/P and S/L levels on different timeframes practically, how to minimize the risks and which settings of the indicator we must select for the different timeframes.

lowphat
467
lowphat  

some people also look for price to break above kijun for entry

not sure of timeframe for this method either and if they use that along with other signals from ichim

Sergey Golubev
Moderator
122903
Sergey Golubev  

I think they are using all the signals together. As many as possible to minimize the risk. And they are waiting untill receive all the confirmation. But it is too late sometimes. Because very faint signal is coming the first, and then the more stronger signals are coming. I will try to describe everything that I know about time frame and settings of this indicator tomorrow. But may say that people are using not D1 only. H1 is very popular as well. Somebody said even about m5!

But D1 and H1 are more popular timeframe.

lowphat
467
lowphat  

here are some settings which i havent had time to test as you said this method was created on a different trading time scale.

Tenkan Sen = 7 Periods

Kijun-sen =22

Senkou (clouds) = 44

Sergey Golubev
Moderator
122903
Sergey Golubev  

Many people understand the good trading systems as a profitability. Yes it is true. But Ishimoku indicator is the reliable system.

Ok. Thus how to estimate the stop loss and profit level? It is very important when we are working with this indicator as with a system to have 1 or 2 profit levels and one stop level.

There are 4 ways to estimate S/L levels.

First one is the technical method for S/L. It is for H1 timeframe only:

15 - 30 p on eur;

20 - 30 on gbp;

35 - 50 on jpy;

30 - 80 on chf.

Sergey Golubev
Moderator
122903
Sergey Golubev  

The second method is mostly for D1 and W1 timeframe.

In this case we may estimate S/L using the cloud (behind the cloud) and something else (some strong support level of the indicator for example). And we will have S/L as big as 200 p (on W1) and 100-150 (on D1).

If we want to estimate S/L by the second method on H1 timeframe, we probably will have 40 - 50 on eur, 50 - 60 on gbp, 70 - 100 on chf and 60 - 90 on jpy.

Sergey Golubev
Moderator
122903
Sergey Golubev  

The third method is always 15 p (on chf pair should be 30 p).

Probability to close the positions on stop loss is not less than:

- 40% if we are follow the trend on H1 timeframe;

- 80% if we are playing against the trend on H1;

- 50 or 60% in the flat market.

Sergey Golubev
Moderator
122903
Sergey Golubev  

On the fourth method

we estimate S/L level using the cloud only (outside the cloud).

Sergey Golubev
Moderator
122903
Sergey Golubev  

T/P level are estimating using the support/resistance lines or borders of the cloud. Besides, if the cloud is wide enough the 1st level of T/P may be in the middle of the cloud (if we understand the cloud as a channel).