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Trading with Ichimoku Clouds: The Essential Guide to Ichimoku Kinko Hyo Technical Analysis

Book Description

The essential guide to today's hottest technical indicator-the Ichimoku Kinko Hyo cloud chart

Ichimoku Kinko Hyo is a technical system that illustrates support and resistance values in a simplified form and is considered an extension of the very popular candlestick charting system. In fact, the system was built on the idea that at "one glance" you should be able to determine whether an instrument is in equilibrium (consolidation) or out of equilibrium (trending).

Written in a straightforward and accessible style, Trading with Ichimoku Clouds offers a solid foundation in this discipline as well as its technical strategies. It shows you how to create and implement a trading plan based on this approach that can easily be tailored to your trading style.

  • First available U.S. publication on this hot trading trend

  • Reveals how Ichimoku Clouds work in both bullish and bearish markets

  • Highlights how these strategies can easily be adopted for stocks, futures, bonds, and other vehicles

  • Works with all timeframes and all tradable instruments

Filled with in-depth insights and expert advice, Trading with Ichimoku Clouds will help you implement a proven strategy designed to capture trends that maximize profits and minimize losses. Furthermore, the user will be taken step by step through the entire decision-making process of trading an instrument for two years (back test).

Table of Contents

  1. Copyright
  2. Introduction
    1. BACKGROUND
      1. Types of Trading
    2. COMPONENTS OF A TRADING SYSTEM
      1. Background
  3. 1. Ichimoku Components
    1. 1.1. TENKAN SEN
    2. 1.2. KIJUN SEN
    3. 1.3. CHIKOU SPAN
    4. 1.4. KUMO CLOUD COMPONENTS
    5. 1.5. SENKOU SPAN A
    6. 1.6. SENKOU SPAN B
    7. 1.7. KUMO CLOUD
  4. 2. Ichimoku Trading Plan
    1. 2.1. COMPONENTS
    2. 2.2. STRATEGY DESCRIPTION
      1. 2.2.1. Bullish Strategy (Instrument Will Go Higher)
      2. 2.2.2. Bearish Strategy (Instrument Will Go Higher)
  5. 3. Ichimoku Backtesting
    1. 3.1. BACKTESTING
    2. 3.2. EURUSD—A TWO-YEAR BACKTEST
    3. 3.3. SUMMARY—TWO YEARS OF BACKTESTING
  6. 4. Post-Analysis
    1. 4.1. EXAMINING THE BACKTEST RESULTS
    2. 4.2. OPTIMIZE TRADING PLAN
  7. 5. Ichimoku Strategies
    1. 5.1. IDEAL ICHIMOKU STRATEGY
      1. 5.1.1. Tenkan Sen/Kijun Sen Crossover Strategy
      2. 5.1.2. Kijun Sen Crossover Strategy
      3. 5.1.3. Kumo Cloud Breakout Strategy
      4. 5.1.4. Future Senkou Crossover Strategy
  8. 6. Ichimoku Time Elements
    1. 6.1. ICHIMOKU TIME ELEMENTS
  9. 7. Applied Trader Psychology/Doug Laughlin
    1. 7.1. IS IT AS EASY AS JUST BEING TAUGHT A NEW SYSTEM?
    2. 7.2. THE PROBLEM WE HAVE WITH GETTING IN OUR OWN WAY
    3. 7.3. IS THERE A CONSPIRACY AGAINST THE SMALL TRADER?
    4. 7.4. TRADERS MYTH—SMART PEOPLE MAKE THE BEST TRADERS
    5. 7.5. LOSING TRADES ARE ACCEPTABLE
    6. 7.6. A SUCCESSFUL SYSTEM WILL FORTIFY YOUR CONVICTIONS
    7. 7.7. SELF-SABOTAGE AND HOW IT APPLIES TO YOUR TRADING
    8. 7.8. IN SUMMARY—TRADER PSYCHOLOGY OVERALL
  10. 8. Day Trading with Ichimoku
    1. 8.1. CONSEQUENCES OF TRADING WITHOUT A TRADING PLAN
    2. 8.2. TRADING PLAN
    3. 8.3. BACKTESTING
    4. 8.4. CONCLUSION
  11. 9. Conclusion
  12. A. Ichimoku Analysis Sheet
  13. Bibliography
    1. Charts
    2. Useful References
  14. About the Author