{"id":4014,"date":"2020-04-09T18:14:55","date_gmt":"2020-04-09T18:14:55","guid":{"rendered":"https:\/\/trade-malaysia-option.com\/best-ichimoku-strategy-for-quick-profits\/"},"modified":"2023-02-08T18:25:54","modified_gmt":"2023-02-08T18:25:54","slug":"best-ichimoku-strategy-for-quick-profits","status":"publish","type":"post","link":"https:\/\/trade-malaysia-option.com\/en\/best-ichimoku-strategy-for-quick-profits\/","title":{"rendered":"Best Ichimoku Strategy for Quick Profits"},"content":{"rendered":"

The Best Ichimoku Strategy for Quick Profits<\/span><\/span><\/h2>\n

The best Ichimoku strategy is a system of technical indicators used to evaluate the market.\u00a0This unique strategy provides trading signals of different quality.\u00a0Forex trading involves the risk of large losses.\u00a0Although, with Ichimoku cloud trading, those losses are contained and kept small.<\/span><\/p>\n

The Ichimoku system is a Japanese charting and technical analysis method.\u00a0Our team at Trading Strategy Traders mastered the method over a long period of time.<\/span><\/p>\n

The Ichimoku indicator was published in 1969 by a journalist, Ichimoku Kinkou Hyo, in Japan.\u00a0This candlestick trading technique has stood the test of time.<\/span><\/p>\n

The name Ichimoku tells a lot about the trading system, or at least it gives an idea of \u200b\u200bthe system.<\/span><\/p>\n

Ichimoku = \u201cOne look, look\u201d.<\/span><\/p>\n

Kinkou = \u201cBalance, balance\u201d.<\/span><\/p>\n

Hyo = \u201cChart, Graph\u201d.<\/span><\/p>\n

The Ichimoku cloud experiment attempts to identify possible price directions.\u00a0It helps traders determine the most appropriate time to enter and exit the market by providing you with the direction of the trend.\u00a0It gives you reliable support and resistance levels and the strength of these market signals.<\/span><\/p>\n

Before we delve further into the Ichimoku Cloud strategy, let’s look at the indicators needed to successfully trade the strategy.<\/span><\/p>\n

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The most popular Forex trading platform uses the Ichimoku Cloud indicator.\u00a0The Ichimoku indicator paints all the necessary components to help better visualize price action.\u00a0Ichimoku cloud is one of the most comprehensive technical indicators in modern use.\u00a0Unsurprisingly, it quickly became the \u201cgo-to\u201d indicator for forex traders around the world.<\/span><\/p>\n

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In the Ichimoku cloud section, we will give you an in-depth overview of the Ichimoku components.<\/span><\/p>\n

So, before moving forward, let’s describe all the components of Cloud Ichimoku.\u00a0We will examine how to interpret the trading signals produced by this technical indicator.<\/span><\/p>\n

Ichimoku Cloud Explained<\/span><\/h2>\n

Ichimoku Hinko Hyo is a momentum indicator used to identify the direction of the trend.\u00a0It can also determine the exact support and resistance levels.\u00a0The Ichimoku Cloud indicator consists of five main components that provide you with reliable trading signals:<\/span><\/p>\n

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  1. The Tenkan-Sen bar, also known as the Conversion Line, represents the midpoint of the last 9 candlesticks.\u00a0It is calculated with the following Ichimoku formula: [(9-period high + 9-period low) \/ 2].<\/span><\/li>\n
  2. The Kijun-Sen line, also known as the Base Line, represents the midpoint of the last 26 candlesticks.\u00a0It is calculated with the following formula: [(26-period high + 26-period low) \/ 2].<\/span><\/li>\n
  3. Chiou Span , also known as Lagging Span, lags behind in price (as the name suggests).\u00a0The Lagging Span has drawn up 26 return periods.<\/span><\/li>\n
  4. Senkou Span A , also known as the Leading Span, represents one of the two Cloud boundaries and the midpoint between the Conversion Line and the Base Line: [(Conversion Line + Base Line) \/ 2].\u00a0This value has been drafted 26 periods into the future and it is the limit of the Cloud faster.<\/span><\/li>\n
  5. Senkou Span B , or Span Span B, represents the boundary of the second Cloud and the midpoint of the last 52 price bars: [(52-period high + 52 period low) \/ 2].\u00a0This value is projected 52 periods into the future and it is the slower Cloud boundary.<\/span><\/li>\n
  6. Chikou Span , represents the closing price and is plotted 26 days away.<\/span><\/li>\n<\/ol>\n

    Although the Ichimoku Cloud indicator involves several (five) different lines, reading the graph is actually very easy.\u00a0Using the aforementioned trend lines, you need to determine whether Span A or Span Lead is currently higher.<\/span><\/p>\n

    Once Span A and the Leading Span have been identified, the “cloud” component of this graphic will be shaded.\u00a0When Span B is leading above Span A, this indicates to the trader that price momentum is increasing.\u00a0When this happens, the graph will be green.<\/span><\/p>\n

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    Conversely, when Span A is below Main Span B, the underlying asset may move in a negative direction.\u00a0When this happens, the cloud will be red.\u00a0Despite the graphic complications, just looking at the color of the clouds can help you determine the direction of the market.<\/span><\/p>\n

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    Here are some basic interpretations of the Ichimoku chart:<\/span><\/p>\n