Ichimoku Kinko Hyo trading system...!

[linkon7]

I think CHIKOU SPAN or lagging line is the most underrated indicator by ichi traders. Surprisingly... it gives the best moves and helps in avoiding whipsaws.

The rest of the indicators gives me clear market picture..but CS is my AK-47... too powerful...

i'll explain this weekend...

Lets look at today's charts...

I use 2 min TF to trade nifty futures...

the first 15 min developed a opening range of 4873 to 4851...
Since CS plots the close and it points out that price bounced off 4853...
since its a gap down, we'll need 26 bars for KS to give any useful info..so we concentrate only on TL...
after 9 bars, TL tells us that 50% retracement of the high to low of the last 9 bars is 4862...
I take a long at 4970..placed a reversal at 4853... intention of exiting long if bar closes below TL...


My logic behind the long : Yesterdays close 4948, todays first 15 min low 4851, means a gap down of 97 points... 38% of that range is 36 points..means it gives me a tgt of 4987 from where shorting might start from big players...
50% retracement is 4899, which normally means that gap will be filled if that level is crossed...

 

[linkon7]

10.22 we get the first resistance line....at 4875

 

[linkon7]

9.50 my tgt of 4887 is hit.. i exit 50% of positions...

Look at the CS... it makes higher high and higher low which means i cannot go short... as bias is upwards... plus i got my exit of 17 points...means my other 50% has become free...

another observation, TL got pierced 2 times, but not once was the low of the piercing bar taken out... so I hold my longs...

 

[linkon7]

9.56 TL gets pierced... the trigger bar (piercing bar)'s Low 4879 gets taken out... i exit balance 50% at 4877.

confirmation CS... it broke through its minor support...

Intention is to short below 4853 if it gets pierced... since TL is higher than KS, it means bias is still upwards...so no short...

 

[linkon7]

10.58 CS failed to take out 4888 twice..so thats the resistance now... since its a gap down, no short is possible unless LOD is taken out... Only trade now is break of 4888 or 4853...

 

[linkon7]

11.08 resistance broke down... so long at 4890.. sl at 4968 which has become the new 2 touch support...

 

[linkon7]

11.30 TL gets pierced... trigger bar lot gets taken out so exit at 4890...

 

[Sunny1]

come on... all of us have a look at this thread just to see if you posted anything new... You are the Ichi-GURU...!:clap::clapping:

I second that

 

[linkon7]

11.40 CS bounce off the trendline..now the trendline has become a 3 touch trendline... means its going to act as strong support...
longed at 4884...
sl 4868, exit if trendline is breached...

 

[linkon7]

12.00 now its a 4 touch support line...
4899 is 50% retracement above this i expect the whole gap to be retraced...