A Japanese columnist and trader named Goichi Hosoda introduced the first comprehensive technical analysis using Ichimoku Kinko Hyo. The basic technique is to provide a vision of the momentum, the strength of a chart as well as the trend sentiment. This technique continues to grow until now and many people who use this technique because it is considered quite accurate in analyzing it, this is because there are quite a lot of supporting components in this indicator.
Ichimoku is designed to automatically provide support & resistance levels, where the direction of moving trend and also entry & exit point. The core of this Ichimoku is a cloud (cloud) in Japanese called Kumo that can provide information about the level of support or resistance of a price. With this indicator you can also see future price predictions through the cloud.
Cloud (cloud) or in Japanese is called Kumo, giving you an idea of how a trend can be accurately analyzed or not. Simple reading is that if the price is above the cloud, then that often happens is the price is confirmed up trend. But if the price is below the cloud, then that often happens is the price confirmed down trend.
Before discussing more about how trading techniques using ichimoku kinko hyo, we will know in advance the components yag is in the indicator ichimoku kinko hyo
Kijun Sen: Described with a blue line with Moving Average 26, traders usually use this to see their support or resistance levels.
Tenkan Sen: Described with a red line with Moving Average 9, traders usually use this to see where the trend goes.
Chikou Span: Described with a green line, traders usually call it by lagging line
Cloud (Komu): Clouds are brown or olive or aqua green.
COMBINATION OF PLENNING AND KIJUN
As mentioned earlier, Tenkan and Kijun are the MA lines of Exponentials 9 and 26, both of which provide a bullish or bearish signal. As Tenkan crosses the Kijun from below, this is an indication of bullish signal. The opposite signal occurs when Tenkan crosses the Kijun from top to bottom, this will be a bearish signal. From this combination of tenkan and kijun you can also see the support resistance level, making it easier for your entry and exit.
SENKOU SPAN, CLOUD FORMING FACTOR (KUMO)
Cloud is a characteristic of Ichomoku Kinko Hyo indicator, where this cloud represents many support and resistance levels in various levels. Cloud itself consists of two lines Senkou Span where one of the lines are white and the other one brown. The fundamental technique of this cloud is that if the price is above the cloud, then that often happens is the price confirmed bullish. But if the price is below the cloud, then that often happens is the price confirmed bearish. But be careful if the price is right in the middle of the cloud because it will be in a position of non bias or unclear.
To determine the support and resistance of this cloud is, when the price is above the cloud, then the top of the cloud will be the support level. Similarly, if the price is below the cloud, the bottom of the cloud will be the resistance level. And if a non-biased condition occurs, the bottom of the cloud can be a break-out point.
But one that must be remembered and cared for, the level of cloud thickness shows strong or weak its a break out. The thicker the cloud will reduce the risk factor false break out that can harm you.
Traders usually call it also with lagging line. Chikou Span This is a price representative that has been going on 26 periods ago to see an existing signal strength. When Tenkan crosses Kijun from top to bottom then you will get a bearish signal. Bearish signal strength will be stronger and confirmed when Chikou span under.
Likewise, when Tenkan crosses the Kijun from below then you will get a bullish signal. The strength of this bullish signal will be stronger and confirmed when Chikou span to the top of the cloud.
Why Chikou span this is 26 periods ago? According to the inventor, the number 26 is the most appropriate number, as it is based on people working 26 days for one month and in half a year is 26 weeks. Believed, this period of 26 brings good luck to traders in long-term analysis.
In the world of forex trading there are many indicators that can be used by traders, but the privilege of Ichimoku is the price can be seen in various time frames, whether daily, monthy or yearly. This is because Ichimoku is focused only on important time, and in its application can go forward or backward in one time frame. This then allows you to see a full picture in one time frame you choose.
Ichimoku is designed to automatically provide support & resistance levels, where the direction of moving trend and also entry & exit point. The core of this Ichimoku is a cloud (cloud) in Japanese called Kumo that can provide information about the level of support or resistance of a price. With this indicator you can also see future price predictions through the cloud.
Cloud (cloud) or in Japanese is called Kumo, giving you an idea of how a trend can be accurately analyzed or not. Simple reading is that if the price is above the cloud, then that often happens is the price is confirmed up trend. But if the price is below the cloud, then that often happens is the price confirmed down trend.
Before discussing more about how trading techniques using ichimoku kinko hyo, we will know in advance the components yag is in the indicator ichimoku kinko hyo
Kijun Sen: Described with a blue line with Moving Average 26, traders usually use this to see their support or resistance levels.
Tenkan Sen: Described with a red line with Moving Average 9, traders usually use this to see where the trend goes.
Chikou Span: Described with a green line, traders usually call it by lagging line
Cloud (Komu): Clouds are brown or olive or aqua green.
COMBINATION OF PLENNING AND KIJUN
SENKOU SPAN, CLOUD FORMING FACTOR (KUMO)
Cloud is a characteristic of Ichomoku Kinko Hyo indicator, where this cloud represents many support and resistance levels in various levels. Cloud itself consists of two lines Senkou Span where one of the lines are white and the other one brown. The fundamental technique of this cloud is that if the price is above the cloud, then that often happens is the price confirmed bullish. But if the price is below the cloud, then that often happens is the price confirmed bearish. But be careful if the price is right in the middle of the cloud because it will be in a position of non bias or unclear.
To determine the support and resistance of this cloud is, when the price is above the cloud, then the top of the cloud will be the support level. Similarly, if the price is below the cloud, the bottom of the cloud will be the resistance level. And if a non-biased condition occurs, the bottom of the cloud can be a break-out point.
But one that must be remembered and cared for, the level of cloud thickness shows strong or weak its a break out. The thicker the cloud will reduce the risk factor false break out that can harm you.
Traders usually call it also with lagging line. Chikou Span This is a price representative that has been going on 26 periods ago to see an existing signal strength. When Tenkan crosses Kijun from top to bottom then you will get a bearish signal. Bearish signal strength will be stronger and confirmed when Chikou span under.
Likewise, when Tenkan crosses the Kijun from below then you will get a bullish signal. The strength of this bullish signal will be stronger and confirmed when Chikou span to the top of the cloud.
Why Chikou span this is 26 periods ago? According to the inventor, the number 26 is the most appropriate number, as it is based on people working 26 days for one month and in half a year is 26 weeks. Believed, this period of 26 brings good luck to traders in long-term analysis.
In the world of forex trading there are many indicators that can be used by traders, but the privilege of Ichimoku is the price can be seen in various time frames, whether daily, monthy or yearly. This is because Ichimoku is focused only on important time, and in its application can go forward or backward in one time frame. This then allows you to see a full picture in one time frame you choose.
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