Kinko Hyo For Professional Charting System By: Radin
nd
Hisyamuddin M. Yassin
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Ichimoku Kinko Hyo – For Professional Charting System by: Radin Hisyamuddin M. Yassin
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Contents 1. About Ichimoku Kinko Hyo
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a) History of Ichimoku Kinko Hyo b) Key Elements of Ichimoku Charts c) Function and Characteristic of Ichimoku Kinko Hyo 2. Why Ichimoku? Page 4 a) Complete system – Trend, Trend, Momentum and volatility b) Perfect Entry and Exit c) No need of other system or website signaling services d) Learn how to predict the Market – Strong Strong Market, Weak Market and Flat e) Becoming a more professional Trader 3. Setting up Ichimoku Kinko Hyo Charts
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a) Setting Parameters – Default Default parameters of 9, 26, 52 b) Creating Templates c) Creating Profiles 4. Market Analysing with Ichimoku Kinko Hyo d) For Forex markets e) For Commodities f) For Major Indexes
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5. Market Entry and Exit with Ichimoku Kinko Hyo a) Determining Strong Bullish Signal (BUY Signal) b) Determining Weak Bullish Signal – Trades Trades to avoid c) Determining Strong Bearish Signal (SELL Signal) d) Determining Weak Bearish Signal – Trades Trades to avoid e) Planning your BUY exits f) Planning your SELL exits g) Re-entering BUY – Determining Determining Continuous Bullish Signal h) Re-entering SELL SELL - Determining Continuous Bearish Signal
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6. Practical Exercises.
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Credits & References.
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Ichimoku Kinko Hyo – For Professional Charting System by: Radin Hisyamuddin M. Yassin
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1. About Ichimoku Kinko Hyo
a) H i sto stor y of of I chi chi moku Ki K i nko H yo Ichimoku Kinko Hyo was founded by Goichi Hosada in 1968. It is created to recognize Major Trend, analyze Support and Resistance of a market and to detect Market Reversal. It was also used in charting to improve the accuracy of forecasted price. b) Key Elements of Ichimoku Charts Tenkan-sen Tenkan-Sen calculation: (highest high + lowest low)/2 for the last 9 periods. It is primarily used as a signal s ignal line and a minor support/resistance line. Kijun-sen Kijun-Sen calculation: (highest high + lowest low)/2 for the past 26 periods. This is a confirmation line, a support/resistance line, and can be used as a trailing stop sto p line. Senkou Span A Senkou Span A calculation: (Tenkan-sen + kijun-sen)/2 plotted 26 periods ahead. Also called leading span 1, this line forms one edge of the kumo, or cloud Senkou Span B Senkou Span B calculation: (highest high + lowest low)/2 calculated over the past 52 time periods and plotted 26 periods periods ahead.
Also called leading span 2, this line forms the ot her edge of the kumo. Chinkou Span Chinkou Span calculation: today's closing price projected back 26 days on the chart.
Also called the lagging span it is used as a support/resistance aid. Kumo Kumo Cloud is the space between Senkou span A and B. The T he cloud edges identify current and potential future support and resistance points. The Kumo cloud changes in shape and height based on price changes. This height represents volatility as larger price movements form for m thicker clouds, which creates a stronger support and resistance. As thinner clouds offer only weak support and resistance, pr ices can and a nd tend to break through such thin clouds. Generally, markets are bullish when Senkou Span A is above Senkou Span B and vice versa when markets are bearish. Traders often o ften look for Kumo Twists in future clouds , where Senkou Span A and B exchange positions, a signal of potential trend reversals.
In addition to thickness, the strength of the cloud can also be ascert ained by its angle; upwards for bullish and downwards for bearish. Any clouds behind price are also a lso known as Kumo Shadows.
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Ichimoku Kinko Hyo – For Professional Charting System by: Radin Hisyamuddin M. Yassin
Ichimoku Kinko Hyo Chart Description
c) Function and Characteristic Characteristic of Ichimoku Kinko Hyo
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Trend- based based system: Trade with the trend, don’t don’t trade against the trend
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Works in all Timeframes: M1, M5, M15, M30, H1, H4, Daily, Weekly
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Works with all instrument: Foreign Exchange, Stocks, Commodities, Commodities, etc. et c.
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Perfect entry, exit, based on Multiple Strategies of Traders; I ntraday, Swing. Swing.
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Minimize Losses when you are wrong, Maximize Profit when you are right.
- No need of any other indicators, because it is complete and balance. -
Ichimoku Kinko Hyo; “Equilibrium at a Glance”
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Ichimoku Kinko Hyo – For Professional Charting System by: Radin Hisyamuddin M. Yassin
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2. Why Ichimoku? a) Complete system – Trend, Trend, Momentum and volatility There are 3 major and important indicators to look at, before dec iding iding a trade. tr ade. - Trend; Traders used Moving averages, MACD to look at a trend - Momentum; Relative Strenght Index (RSI) is used to monitor price momentum - Volatility; Bollinger Band, etc is used detect volatility of Pr ice
With Ichimoku, it completes your setup of indicators. b) Perfect Entry and Exit Entry is made based on Trend. By looking at higher timeframes, we can determine the main tr end of a certain chosen periods.
Whenever trend is determined, traders must look for perfect entr y. Good entries tends to give less heat and results in huge and massive profits for traders. c) No need of other system or website signaling services With Ichimoku, traders, beginner or professional need no other services on signaling trades that results in losses than profit. Traders saves more money and time by avoiding subscribing to signal services and wasting time looking for trade forums by newbies and act -like-a-pro traders, giving false and stupid unreasonable analysis. d) Learn how to predict the Market – Strong Strong Market, Weak Market and Flat Learn how to forecast market movement movement and plan your trades. Then, trade your plan with with Ichimoku Kinko Hyo e) Becoming a more professional Trader By mastering the Art of Trading with Ichimoku Kinko Hyo, traders can become more professional and smart in their trading career and profession.
A professional trader makes fewer mistakes and makes more money than anyone else in the investment market.
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Ichimoku Kinko Hyo – For Professional Charting System by: Radin Hisyamuddin M. Yassin
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3. Setting up Ichimoku Kinko Hyo Charts a) Setting Parameters – Default Default parameters of 9, 26, 52
You may start by setting up your charts with Ichimoku indicator. Open a blank chart with the pair of your choice and click cl ick CTRL N, you can see your MT4 Navigator window appear on your left. Expand Indicators, and click Ichimoku Kinko Hyo. Drag I chimoku chimoku to your chart and set up t he parameters. By default, it is 9 for TS, 26 for for KS and 52 for Senkou Span, Span, or Kumo Clouds.
Some traders modify the settings, set tings, based on their money management. For example 27, 78, 156 which can be used on lower timeframes such as M5 and M15. Other prefer t he default settings sett ings of 9, 26, 52 To make the “Glance” of the Ichimoku chart easier eas ier and more contrast, you can setup the colours as shown below.
Choose line 2 or 3 to thickens the Tenkan Sen, Kijun Sen and Chinkou span. You can also change the colour based on my settings above. For the Kumo, change the line width to size 5, to make the kumo clouds more “Cloudy”. 5
Ichimoku Kinko Hyo – For Professional Charting System by: Radin Hisyamuddin M. Yassin
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b) Creating Templates After you had placed the Ichimoku indicator, you can enhance the looks of the chart by pressing F8 on your keyboard. The properties window for the charts will appear.
Click the Color Scheme drop down list for Black On White (Recommended). Then, click the following; - Chart Shift (On the Chart Toolbar) - CTRL G (To remove grid lines, if you prefer to) - CTRL Y (to show period separators) - Then Click the Templates toolbar and Click “Save Templates”. Save it as Ichimoku Plain or Plain or Ichimoku White, White, or o r whatever name you can understand later. It is advisable to place a number, such such as “1. Ichimoku Plain” as the name of the te mplates for easier access when applying on another plain charts.
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Ichimoku Kinko Hyo – For Professional Charting System by: Radin Hisyamuddin M. Yassin
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c) Creating Profiles After successfully creating creat ing your first Ichimoku templates, you can open additional charts for monitoring smaller timeframes movement. Rearrange the charts as you wish, wish, as long as it makes you trading easier.
You might want to monitor and look for opportunity to trade your favorite instruments, it’s easy. it’s easy. Click the button at the bottom of the charts, then, click “Save Profile As”. If you had created charts for Eurusd, and you want to replace the blank default charts o n your indicator, just replace the “EURO”. If you had created char ts ts not on the default list of profiles, you can simply name your new profile, say Aussie Dollars, for AUDUSD charts, CRUDE for Brent Oil, etc. By setting up profiles, you already start to become a more professional professional trader, trader , the first step of course. Simply click the profile to switch between pro files of your favorites charts or instrument. Additional function, to easily switch from one profile to another, is to click CTRL F5 to switch to the next profile, or SHIFT F5 to switch to previous profile.
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Ichimoku Kinko Hyo – For Professional Charting System by: Radin Hisyamuddin M. Yassin
4. Market Analyzing with Ichimoku Kinko Hyo a) For Forex markets, All Currencies, including exotic pair
b) For Commodities Exchange on Agricultural, Agricultural, Equities and Energy products products
c) For Major Indices in Stock Market index, Dow Jones, Jones, Nasdaq, S & P 500, etc.
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Ichimoku Kinko Hyo – For Professional Charting System by: Radin Hisyamuddin M. Yassin
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5. Market Entry and Exit with Ichimoku Kinko Hyo a) Determining Strong Bullish Signal (BUY Signal) Strong Bullish/Buying signal is a result of Tenkan Sen crossing Kijun Sen from below, above Kumo Clouds or both Senkou Span A and B. Det ect a Bullish reversal is difficult, but can be seen on the Senkou Span Twist ahead. From the colour itself, we can forecast t hat a market is going up by just looking at the t he Clouds.
For deciding to BUY a market in a day trading, follow this check lists. - H1 must show price above Kumo Clouds. - Both TS and KS must be heading upwards, or better above clouds - Smaller Timeframes must be; TS cross KS from below, above clouds - Mid Timeframes shows at least a neutral, both TS and KS is inside Kumo - Chinkou Span must cross both TS and KS from below price and both both TS and KS - Chinkou Span must be above price and
b) Determining Weak Bullish Signal – Trades Trades to avoid Weak Bullish signal is a result of o f TS crossing KS from below, but BELOW KUMO CLOUDS.
Caution must be made when buying below Kumo clouds. The reason is simple. It is a bearish movement, and it might just be a pullback before continuing its movement downwards. Strong Trade Signal in not always available for reta il traders because a st rong movement occurs like 2 or 3 times a month for a certain pair.
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Ichimoku Kinko Hyo – For Professional Charting System by: Radin Hisyamuddin M. Yassin
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c) Determining Strong Bearish Signal (SELL Signal) Strong Bearish/Selling signal is a result of o f Tenkan Sen crossing Kijun Kijun Sen from Above, below Kumo Clouds or both Senkou Span A and B. Detect a Bearish reversal is difficult, but can be seen on the Senkou Span Twist ahead. From the colour itself, we can forecast t hat a market is going downwards by just looking at the Bearish Bear ish Clouds.
When deciding to SELL a market in a day trading, follow this check lists. - H1 must show price Below Kumo Clouds. downwards, or better below better below clouds - Both TS and KS must be heading downwards, - Smaller Timeframes must be; TS cross KS from below, above clouds - Mid Timeframes shows at least a neutral, both TS and KS is inside Kumo - Chinkou Span must cross both TS and KS from above and both TS and KS - Chinkou Span must be below price and both
d) Determining Weak Bearish Signal – Trades Trades to avoid Weak Bearish signal is a result of o f TS crossing KS from above, but ABOVE KUMO CLOUDS.
Caution must be made when selling above Kumo clouds. The reason is simple. It is a bullish movement, and it might just be a pullback before continuing its movement upwards. Some also called it false signal detection.
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Ichimoku Kinko Hyo – For Professional Charting System by: Radin Hisyamuddin M. Yassin
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e) Planning your BUY exits By using Ichimoku, you make use of the built built Take Profit indication. It’s easy to decide an exit. It happens when TS crosses back KS, from side or o r above. Chinkou Span crosses both TS and KS and below price. That is your BUY exit
f) Planning your SELL exits Like the BUY exit, Sell exit is when TS crosses KS from side or below. Chinkou Span no longer longer is under price, it is finding its way wa y up above above price and crosses both TS and KS.
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Ichimoku Kinko Hyo – For Professional Charting System by: Radin Hisyamuddin M. Yassin
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g) Re-entering Re-entering BUY – Determining Determining Continuous Bullish Signal Making a continuous buy is similar to entering a trade in the middle of a trend. Just make sure you had checked on all the conditions co nditions and it usually happens during a pullback pu llback from an uptrend movement.
This is when weak bearish crossover is a sell danger zone, because market tends to retrace, before continuing its way up.
h) Re-entering SELL - Determining Continuous Bearish Signal It’s similar to deciding to continue buying, buying, Continuous sell can be made when all Selling conditions are met. It’s also as a result of o f a Pullback from a bearish movement.
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Ichimoku Kinko Hyo – For Professional Charting System by: Radin Hisyamuddin M. Yassin
8. Practical Exercises
a. What are the the eleme elements nts in Ichimo Ichimoku ku Kinko Kinko Hyo? Hyo?
b. What are the default default para paramete meters rs of of Ichimoku Ichimoku? ?
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Can Ichimoku Ichimoku be used used with Stock, Stock, Commodities Commodities or CFD Charts? Charts? Please state state a few few below. below.
d. Define Define a stron strong g buy signal signal in an Intrada Intraday y Trading Trading..
e. Define Define a stron strong g sell signa signall in an Intrad Intraday ay Tradin Trading. g.
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When does does a weak weak buying/b buying/bullish ullish sign signal al occurs? occurs? What What condit conditions ions define definess the False Buy Signal? “
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g. When does does a weak weak selling/bear selling/bearish ish signal signal occurs? occurs? What What conditions conditions defines defines the the False Sell Signal? “
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h. When do we exits or or closed our buy positions? positions? Any other alternatives alternatives to look at at the exits? exits?
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What conditio condition n does we exits or or closed closed our sell sell positions? positions? Any other other alternativ alternatives es to look look at the the exits? exits?
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What conditions do we continue buying buying in a strong uptrend Rally?
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What conditions conditions do we continue continue selling selling in a strong strong downtrend downtrend Rally?
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In what way would would you practice practice to master master the the art of of trading trading with Ichimoku Ichimoku? ? Please explain explain in not not more than 100 words.
Notes:
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Ichimoku Kinko Hyo – For Professional Charting System by: Radin Hisyamuddin M. Yassin
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9. Credits & References.
www.positive-fx.co.uk sfxt.blogspot.com www.ichi360.com www.forexfactory.com www.wikipedia.com www.fxp-kl.com
- Training and trading centres. Brokerage Firm - Forex, stocks, Commdities and Energy Analysis - Creator of the ichi360 trading system - Search Ichimoku Forever Thread for links - Source of informations on Ichimoku - Preferred broker with No trading Restrictions
Disclaimer: Trading foreign exchange on margin carries high potential rewards but also high potential risks that may not be suitable for f or all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, le vel of experience and risk appetite. Past performance is not indicative of future results, which can vary due to market volatility. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts. Distribution of this Guide is fully permitted as for the following following conditions; No materials or information in this guide is to be modified, so as to preserve t he contents of the Trading System. Any comments or suggestions, please email to
[email protected] or
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