4xpipcounter
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Ichimoku cloud III
This is part 2 of the Ichimoku and its components. This part will cover the features and the uniqueness of the tenken sen "(tenken" for short) and kijun sen ("kijun" for short). Opportunities can be found in any market and timeframe. I would specifically urge you to plot the ichimoku on your chart, then see for yourselves what ichimoku will yield to you in terms of trading opportunities. You can also use any of the charts I have posted in this thread as a reference.
Also in describing each component of ichimoku, they are best used as a confluence with other components, but each entity can still be used as a standalone indicator when used correctly.
In using the tenken and kijun as a determinant for an entry, there are specific rules that are applied just like in any other methodology.
Unless another chart has been posted, the blue line will always be the tenken and the red line the kijun
Let's refer to the USD/CHF chart as posted in post #73. I'm using that chart, not to cherry-pick the charts, but because the trend went from Down to UP to Down. After all, it does no good if it is a consistent trend on the whole chart with the exception of identifying that the kijun abd tenken act as resistances and supports. If that is all it is good for, then I might as well end the post right now....but, I'm not letting you off that easy.
First, when the tenken crosses over the kijun it is a buy or sell signal depended on the direction it crossed. There are other factors, namely the location of them when they crossed. As an example if they cross below the cloud and the candle is at the top if the cloud, then that is not a viable buy signal. It is, however, if price action gets retreats back to the area and the close is just above that cross. The idea cross, in the example of a long position would be when it crosses just under the cloud and the candle is near the bottom of the cloud. Another nice signal is when the candle crosses above the TK after it crossed. That can be said for about anywhere on the map.
Getting back to the USD/CHF, notice when the direction changed from DOWN to UP. The 1st candle in the UP opened above the tenken. That is the 1st indication that some action going north is about to happen. As a confluence the candles were floating quite low by comparison to the cloud, so there needed to be a gravitational pull of some sort. Once it started above the tenken it went up and then the next day the kijun was resistance, but the tenken was still support. Notice how the tenken and kijun are both converging. The ultimate buy signal comes when the candle opens above both the TK on the cross. After that happens, price action never touched the kijun while the next resistance was the cloud. Ultimately, the candle gets pushed into the cloud, and the candle continues through the cloud and out the other end. Once out, there was going to be a further rise, but a warning came when the kijun's momentum gave out and went level on top of the cloud.
There are a few traders that use the ichimoku as a standalone indicator. I can understand how they could use it as such in lieu of my view of the pair. I have been saying all along that because of the stochastics being OB that price action will end up at the kijun, which is 1.0930. That is also solid support, because it is still level, and also resting atop the cloud. Therefore once the kijun is hit and the week closes above it, then that is a viable buy sign.
Next stop in our journey through the land of ichimoku is the cloud
This is part 2 of the Ichimoku and its components. This part will cover the features and the uniqueness of the tenken sen "(tenken" for short) and kijun sen ("kijun" for short). Opportunities can be found in any market and timeframe. I would specifically urge you to plot the ichimoku on your chart, then see for yourselves what ichimoku will yield to you in terms of trading opportunities. You can also use any of the charts I have posted in this thread as a reference.
Also in describing each component of ichimoku, they are best used as a confluence with other components, but each entity can still be used as a standalone indicator when used correctly.
In using the tenken and kijun as a determinant for an entry, there are specific rules that are applied just like in any other methodology.
Unless another chart has been posted, the blue line will always be the tenken and the red line the kijun
Let's refer to the USD/CHF chart as posted in post #73. I'm using that chart, not to cherry-pick the charts, but because the trend went from Down to UP to Down. After all, it does no good if it is a consistent trend on the whole chart with the exception of identifying that the kijun abd tenken act as resistances and supports. If that is all it is good for, then I might as well end the post right now....but, I'm not letting you off that easy.
First, when the tenken crosses over the kijun it is a buy or sell signal depended on the direction it crossed. There are other factors, namely the location of them when they crossed. As an example if they cross below the cloud and the candle is at the top if the cloud, then that is not a viable buy signal. It is, however, if price action gets retreats back to the area and the close is just above that cross. The idea cross, in the example of a long position would be when it crosses just under the cloud and the candle is near the bottom of the cloud. Another nice signal is when the candle crosses above the TK after it crossed. That can be said for about anywhere on the map.
Getting back to the USD/CHF, notice when the direction changed from DOWN to UP. The 1st candle in the UP opened above the tenken. That is the 1st indication that some action going north is about to happen. As a confluence the candles were floating quite low by comparison to the cloud, so there needed to be a gravitational pull of some sort. Once it started above the tenken it went up and then the next day the kijun was resistance, but the tenken was still support. Notice how the tenken and kijun are both converging. The ultimate buy signal comes when the candle opens above both the TK on the cross. After that happens, price action never touched the kijun while the next resistance was the cloud. Ultimately, the candle gets pushed into the cloud, and the candle continues through the cloud and out the other end. Once out, there was going to be a further rise, but a warning came when the kijun's momentum gave out and went level on top of the cloud.
There are a few traders that use the ichimoku as a standalone indicator. I can understand how they could use it as such in lieu of my view of the pair. I have been saying all along that because of the stochastics being OB that price action will end up at the kijun, which is 1.0930. That is also solid support, because it is still level, and also resting atop the cloud. Therefore once the kijun is hit and the week closes above it, then that is a viable buy sign.
Next stop in our journey through the land of ichimoku is the cloud