Ichimoku Flashcards
Baseline
Kijun - avg HH and LL for past 26 candles (slow)
Conversion line
Tenkan - avg HH and LL for past 9 candles (fast)
Cloud
Kumo - line 1: avg of Tenkan and Kijun for past 26 candles; line 2: avg of HH and LL for past 52 periods, plotted ahead
Cloud lines
Senkou (span): Span A (fast) and Span B (slow)
Buy signals
1) candles above cloud
2) Chiko (delayed) crosses above cloud
3) Tenkan crosses above Kijun
Sell signals
1) candles below cloud
2) chiko crosses below cloud
3) Tenkan crosses below Kijun
Candles in the cloud
period of consolidation = no trading here
Support line
Use most current bottom cloud line as support
Resistance line
Use current top cloud line as resistance
Calculations
TOS will adapt Ichimoku to frequency selected
Green cloud
Bullish sign
Red cloud
Bearish sign
Candles above cloud
Bullish momentum
Cloud below candlesticks
cloud is support
Candles below cloud
Bearish momentum
Cloud above candles
cloud is resistance
candles within cloud
NO Trading
When 2 go long?
1) Candles break through and above cloud or above cloud
2) Cloud is green
3) Conversion line (Tenkan) crosses above Base line (Kijum) = fast MA crosses slow MA
4) Chikou is above cloud
When to go short?
1) Kumo breakout below
2) read cloud
3) Tenkan below Kijun
4) Chikou below cloud
Going longer
1) follow when to long rules
2) scaling position: buy every time candles drop and hit Conversion line (indicates pullback in uptrend)
Going shorter
1) The candles begin to close below Conversion line, it may mean a weakening in momentum and eventually beginning of a downtrend
2) short in parts as candles drop below: conversion –> baseline –> cloud support –> short or kill position
