Ichimoku Kinko: How to use ichimoku Kinko indicator to trade the market

By QuintoTrader | Quinto Trader | 23 Aug 2019


ichimoku kinko is a versatile indicator that defines support and resistance,identifies trend direction,gauges momentum and provides trading signal.

 

Periods

The ichimoku cloud was created on  the basis of 3 periods,that is;9period,26period and 52periods.These periods can either be in terms of seconds,minutes,hours,days and months.It will be based on the time frame that one will choose to use.In most trading platform,these periods are on default thus one has the right to adjust them when they want to use them.

bearish and bullish market

The ichimoku cloud has got two pairs of colour,that is; red/black and green/white.The red/black indicates the bearing market while the green/white indicates the bullish market.The red/black cloud normally moves above the graph while the green/white clouds normally moves below the graph.When the red/black clouds are moving above the graph,that is an indication that the market will be moving downwards thus one should enter a sell position while if the white/green clouds are moving below the graph,then that will be an indication that the market will be moving upwards thus one should enter a buy position.

Ichimoku Sectors

The ichimoku kinko constitute of 3 sectors.that is;Kumo(cloud),Tenkan sen(line),kijun sen(line),chikou(span),senkouspan(A) and senkou span(B). The kumo(cloud) is located inside the senkou span(A) and senkou span(B).The kumo(cloud) is the one that moves above or below the graph thus enabling one to know when to enter a buy or a sell position.The chikou span acts as a trade filter such that when there is a bearish market then it will show downward trend while when there is bullish market,it will show upward trend.During the bullish market,the kumo(cloud) will be below the graph thus the senkou span(A) will be above the kumo(cloud) while the senkou span(B) will be below the kumo(cloud).During the bearish market,the kumo(cloud) will be above the graph thus the senkou span(A) will be below the kumo(cloud) while the senkou span(B) will be above the kumo cloud.This is indacated as below;

 

MetaTrader%2BWeb%2BTerminal%2B%25282%2529.png

 

From the figure above,all the sectors of the ichimoku cloud are being indicated by the arrow.The kumo(cloud) is the shaded cloud located inside the senkou span A and senkou span B .Kijun sen is the blue line while tenken sen is the red line.The chikou span is the green line

The kumo(cloud) are moving below the candle stick thus an indicator of a buy position.This gives the trader the signal of entering a buy position.For the downward trend signal,here is how the kumo(cloud) looks like;

MetaTrader%2BWeb%2BTerminal%2B%25283%2529.png

 

From the figure above,all the sectors of ichimoku cloud are being indicated by the arrow.The kumo(cloud) is the shaded cloud located inside the senkou span A and senkou span B.Kijun sen is the blue line while tenken sen is the red line.The chikou span is the green line.

The kumo(cloud) are moving above the candle stick thus an indicator of a sell position.This gives the trader the signal of entering a sell position

 

Recommendation:If you are a day trader,use 1minute time frame,5minute time frame,15min time frame and 30 minute time frame if you want the ichimoku cloud to work for you while if you are a swing trader just use 1hour time frame and so on if you want the ichimoku cloud tool to work for you

 

Recommendation 2:Use common sense while trading with ichimoku kinko tool

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QuintoTrader
QuintoTrader

Trader, Blockchain Technologist and Contentpreneur. Also founder and CEO @ Quinto Trader


Quinto Trader
Quinto Trader

Teacher forex school provides individual with training regarding to forex trading and cryptocurrency trading. We also share trading ideas online for both crypto and forex market

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