Ichimoku Kinko Hyo trading system...!

[linkon7]

I'm trying to keep my strategy close to home if you know what I mean.

I am relatively new in this market and i had set my priority in developing a setup that can trade a single scrip in any market conditions.

Ichi is by far the best trend following setup i have tested till date. But its draw back is also that it is only trend following setup. On a sideway market, it can kill. It is designed to capture 80% of the trend. That is simply awesome provided there is a trend to trade.

I trade nifty futures & nifty options and since I have only one scrip to track, ICHI is good only for 30% of the time when trend is strong. Counter trend trades and sideways market trades had to be aligned with other setups since it required early entry with small stop loss and variable targets. However the combination of the three setups is very potent.

Now i can keep the development to myself and work on refinement everyday or make it public and get public opinions and have plenty of point of view of my system which will speed up my learning curve.

Everyone talks of DISCIPLINE as the root of success in this market, but to me its "knowing what to do and having the guts to do it when the time comes". Most of my knowledge comes from interaction with traders on various forums and it is their opinion that made me go back to the drawing board every now and then. Once we realise the flaw only then we can work on it. Positivity is basically lack of negatives and more people point out negatives, i can slowly weed out indecision points from my system and slowly build on the ability to follow my system with more confidence.

bottom line... share your strategy...

 

[Sunny1]

"knowing what to do and having the guts to do it when the time comes"
you have speak up my mind....:clap:

 

[CamelToeJoe]

"knowing what to do and having the guts to do it when the time comes"

Exactly! I make decisions often on my intuition. Intuition isn't something that can be taught. I have a system. I have discipline. I have intuition. Most of us know the basics of trading the ichimoku system. Most of us also have rules set in place. I can share a few with a forum but they are pretty basic. Now we all have intuition but some are better than others. I probably fall in the middle of the pack here and am always looking to improve. The more I study the charts, the more experience I gain, the stronger my intuition becomes.

In regards to a system, I trade based on price value. This is why I like the 60,120,240,480 IAs on the subgraph below my chart. I can look at the subgraph and see that over that past 3 months, price is valued exactly here. Over the past 6, here and so on. I'm a support and resistance trader as well. My support and resistance also come from my IAs.

I first look to the weekly and daily charts (at night) for my direction the next day. I used to counter trade quite often and get lucky but I've since become more precise in my trading. I day trade and will not trade against intraday trends.

No matter how overbought something looks, it doesn't matter. The trend is your friend and I stick to that. I trade that way until the market tells me otherwise. I never try to pick a top or a bottom. I always use stops and I use IAs to pick my stop. I will sometimes manually trail my trade with a stop but I usually don't have a profit limit. I used to make bracketed trades but I'm moving away from that. Patience is a good quality to have and by setting certain rules you are forced to have patience by following the rules. This is where discipline comes into play. I never trade through the cloud. I make most of my trades off of the cloud for a long position or bounce below the cloud for a short play. I also trade for straight drops out of the cloud (above or below). The whole time though I'm looking at my subgraph and the key IA levels. I want to make sure I'm clear for a good take off without much resistance or support to break through. I also usually only play liquid futures like Euro, Gold, Oil, Treasury Notes.

This is all basic information IMO. Money Management is akey. Every trader must have a plan in that regards. Everyone must have a plan period. If you don't have a plan, plan to fail. Protect your capital at all times. Trading should be looked at as a business therefore we must have a business plan. After that, it comes down to your system and your intuition but the foundation of my trading is built from Money Management and protecting my capital.

 

[CamelToeJoe]

I mention protecting your capital because as a new trader we tend to over due it and blow a huge chunk of our capital on mistakes. That is okay, we are all going to make mistakes and we should in order to learn. This is our tuition to the markets. The problem is losing too much of our capital each trade more frequently than we would like to. I think when you first start trading you should make few trades and mostly watch and document/paper trade. Things need to be taken slow so that we do not blow our account up very quickly. After about 2000 hours of screen time, I'm not making those mistakes anymore and by protecting my capital I was able to weather the storm and still have money left to trade after the proper knowledge had been obtained.

The moral, build your rules around your mistakes.

 

[linkon7]

CS showed support at 5722 region. Cs tested the HL tested 3 times making it very strong... so a counter trend buy was on the cards...
Ichi being a trend following setup...did not approve of this trade...

but contra setup says it was a decent higher probability trade... CCI showing divergence... BB inside the accl band.. CCI breaking trendline... failure to cross the -100 mark on the CCI... all leading indicators are on a buy mode...

bottom line.. trend is not always the friend. knowing when a swing matures can give us small stoploss contra trades.... that can be very profitable. failure of such trades are good reversal trades that atleast recovers the loss of the previous trade...

 

[vinst]

hi,
I am posting sensex EOD ichimoku chart.
It has been pretty confusing to me in last 2 months. I have marked some points on the chart (A, B, C).
Point A
----------
Price just closed below cloud with sto in oversold condition (lower chart). The nest day price closed within cloud and then touched upper end of cloud at 'C'. Came down to close below cloud at 'B' and next day closed higher into cloud. Sto showing +ve div. emacd just becoming bullish. Was it a buy here?

[/URL][/IMG]
click on the chart to open it in bigger size.

regards
vin

 

[linkon7]

hi,
I am posting sensex EOD ichimoku chart.
It has been pretty confusing to me in last 2 months. I have marked some points on the chart (A, B, C).
Point A
----------
Price just closed below cloud with sto in oversold condition (lower chart). The nest day price closed within cloud and then touched upper end of cloud at 'C'. Came down to close below cloud at 'B' and next day closed higher into cloud. Sto showing +ve div. emacd just becoming bullish. Was it a buy here?

[/URL][/IMG]
click on the chart to open it in bigger size.

regards
vin

Preferably avoid trades when price is inside the cloud. Price took support at A and then failed to break the cloud on C. Break of point A would be your entry into short with point C as stoploss... At point B when price took support... you essentially have a double bottom. Check momentum indicators or rsi to see if there is a major divergence there. Point B then becomes a good Buy for a target of 127%-162% - 262% of the distance between point A and C. This trade is interesting as Break of point A would be a reversal with point C as stop loss... with similar target on the down side...

 

[CamelToeJoe]

Of course the trend may not be your friend in all instances. What I meant by that is I never counter trade when price is above the kumo. I only go long and vice versa. I'm a kumo bounce/kumo breakout trader. Your chart shows a thin cloud with ts/ks very tight as price exited the kumo for the first time in over 24 hours. Intuition might possible have told me that buyers were gonna chase, ramping the momentum for a nice flip.

One of the most successful day traders in history gives insight in this book that he always trades the trends direction. Price may say overbought and is screaming for a pullback, but until the market tells him otherwise, he's going to keep trading the direction of the trend.

Pit Bull: Lessons from Wall Street's Champion Day Trader

http://www.amazon.com/Pit-Bull-Lessons-Streets-Champion/dp/0887309569

As to not confuse anyone, I trade intraday trends using ichimoku. I use weekly and daily for overall direction but I do trade against the trend on a daily or weekly chart, only intraday trend remains my friend.

There is always a trend to be found intraday and opportunities are abundant with the many instruments futures offers.

 

[zzebie]

Senkou Span Cross

Hi All,

Firstly Thanks to all the gurus here for posting the basics of the Ichimoku system. I have a basic question regarding Senkou Span cross and will be thankful if you can help me understand the same

As the Senkou span is basically projected forward, the cross that triggers this signal will be 26 periods ahead of today. Let's say for instance after taking all the analysis as a whole, if i determine that the senkou span cross happening is a bullish signal. Does it mean its a bullish signal from today or after 26 periods from today.

I can re-write my question if i have not put it properly

Thanks _/|\_
zz

 

[4xpipcounter]

http://img822.imageshack.us/i/54136641.gif/

Stocks Murtaza, I have been "overjoyed" for 4 years. It was in 2007 I discovered the ichimoku, and it became the staple of the methodology. I love reading this thread, because I can tell Linkon, among others are very knowledgeable in the usage of the ichimoku.
I posted a chart of a recent long trade on the GBP/CHF. I know my charts are quite busy, but the only thing I needed to know in making this trade was that the candle broke above the cloud, the tenken was following it closely, and the kijun was right behind. The horizontal line was drawn off the top of the cloud of where it was previously. That's a good target, but also a good area to watch for as a potential reversal.

Zzebie, I know you were asking about the usage of the Senkou span. This is one of them. Also when you initially approach it, it is more often than not a strong S or R. I had a nice short trade when on the initial peak, it hit the bottom of the cloud. I did use the stochastics to abet that trading decision. It was OB, and the bottom of the cloud was hit. Also, notice the cloud at that previous peak was projected bearish in the future. Also when the dip was over, the kijun acted as support (My exit.), and the dip ended at the bottom of the cloud as it is projected into the future.

Just two words Linkon --

WoW :gunsmilie:
Great


:thanx:
for the time and work invested for ALL investors/traders not having Ichamoku to help them make decisions.

:hug:

Everyone will be overjoyed :yahoo: