A Unique Trend Trading System

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Ichimoko Kinko Hyo is a unique trend trading charting system. The name may sound intimidating to those unfamiliar with Japanese and a quick glance at the formula makes it appear far more complex than it really is. Trading trend is what makes a fortune. This indicator is a very versatile indicator that can help you trade trends in both the forex as well as the stock market. It tells you almost everything about the trend in a visual manner.

Ichimoko Kumo Hyo Indicator is surprisingly not a well known indicator. However, it is considered to be a very good trend trading indicator by PRO traders who have used it in their trading. The primary strength of the Ichimoko Kinko Hyo System is that it uses multiple data points to give the trader a deeper and comprehensive picture of the price action.

Ichimoko Kinko Hyo Indicator will give you a much better understanding of how the market truly functions with support and resistance as not just points or lines on the charts but rather as areas that expand and contract depending on the market dynamics.

In other words, with this one indicator alone you can define support and resistance, identify trend direction, measure momentum and get trading signals. Can you do all these things using any other indicator? No! This one indicator will tell you about the momentum of the trend, the direction of the trend, support and resistance as well as let you know when is the best time to enter and exit a trade.

Ichimoko Cloud is the core of the Ichimoko Kinko Hyo Indicator and consists of the following five plots;

1. Tenkan-sen also known as the Conversion Line

2. The Baseline also known as Kijun-sen

3. Senkou Span A which is Leading Span A

4. Leading Span B also known as the Senkou Span B

5. Lagging Span also known as Chikou Span

This is how these five plots are calculated;

Conversion Line= (9-Period High+9-Period Low)/2

Baseline = (26-Period High+26-Period Low)/2

Leading Span A=(Conversion Line+Baseline)/2

Leading Span B=(52-Period High+52-Period Low)/2

Lagging Span =Close Plotted 26 days in the past.

Leading Span A and the Leading Span B are the two most important plots on the Ichimoko Kinko Hyo Indicator. This indicator can be easily used on the MT4 Platform. It works best on the daily and the weekly charts.


About the Author:
Mr. Ahmad Hassam has done Masters from Harvard University. Get these
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