Article An Introduction to Ichimoku Charts in Forex Trading

T2W Bot

Staff member
1,473 70
The Ichimoku Kinko Hyo or equilibrium chart isolates higher probability trades in the forex market. It is new to the mainstream, but has been rising incrementally in popularity among novice and experienced traders. More known for its applications in the futures and equities forums, the Ichimoku displays a clearer picture because it shows more data points, which provide a more reliable price action. The application offers multiple tests and combines three indicators into one chart, allowing the trader to make the most informed decision. Learn how the Ichimoku works and how to add it to your own trading routine.
Getting to Know Ichimoku Before a trader can trade effectively on the chart, a basic understanding of the components that make up the equilibrium chart need to be established. Created and revealed in 1968, the Ichimoku was developed in a manner unlike most other technical indicators and chart applications. Usually formulated by statisticians or mathematicians in the...
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trendie

Legendary member
6,513 1,113
Been toying with this.
Whats the point of the Chikou Span?
Its supposedly closing price but shifted back 22 bars.
Thats, 22 bars behind the true price.
Why?
On image, shown as black line, with rough arrows pointing it out.
ichimoku.PNG
 

1nvest

Active member
112 31
Been toying with this.
Whats the point of the Chikou Span?
Its supposedly closing price but shifted back 22 bars.
Thats, 22 bars behind the true price.
Why?
On image, shown as black line, with rough arrows pointing it out. View attachment 285535
Hi Trendie, the ichimoku setting for the chikou span is normally 26 rather than 22.

that aside, why, why have something plotted in the past
what the span is doing is comparing todays price with that 26 days, weeks ago. is it above price, yes = uptrend
in effect it is the exact same calculation of momentum or ROC(rate of change) indicator, but has it on the screen rather than below it.
it is also supposed to be used as a confirmation. if its above the cloud then again, confirmation of its upward bias. personally i dont use it for the second, but i really like momentum as a trend indicator. very simple but with very good results
 
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