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Ichimoku Learning

The document discusses an Ichimoku trading pattern called the cloud bound zigzag pattern. It describes the pattern as involving a previous bullish trend, a range bound period, a weak Tenkan-Sen/Kijun-Sen crossover, a bearish Chikou Span supporting the crossover, price entering the Kumo cloud and forming a zigzag pattern inside the cloud, price breaking through the cloud support, and the Chikou Span providing further confirmation in that direction. The document also discusses using Chikou Span crossovers and Kijun-Sen breakouts as Ichimoku entry strategies.

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ecz1979
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451 views

Ichimoku Learning

The document discusses an Ichimoku trading pattern called the cloud bound zigzag pattern. It describes the pattern as involving a previous bullish trend, a range bound period, a weak Tenkan-Sen/Kijun-Sen crossover, a bearish Chikou Span supporting the crossover, price entering the Kumo cloud and forming a zigzag pattern inside the cloud, price breaking through the cloud support, and the Chikou Span providing further confirmation in that direction. The document also discusses using Chikou Span crossovers and Kijun-Sen breakouts as Ichimoku entry strategies.

Uploaded by

ecz1979
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Ichimoku Learning: Cloud bound Zigzag Pattern

I took a Scalping Trade last night (my night, since I’m in Australia, it should have been
your day if you’re based in US / EU) on NASDAQ Future Index and thought to post the
chart to explain more about the Ichimoku Patterns I’m studying / researching these
days.

I’ve posted this particular Pattern earlier as well and I’ve found this one to be highly
accurate and profitable. Basically what you’re looking for is:

1. Previous Trend which is Bullish in this scenario


2. Range Bound Flat Trading for a while
3. A Weak or Average Tenkan-Sen / Kijun-Sen Crossover
4. Chikou-Span supporting that Weak or Average Crossover (by turning Bearish in
this example)
5. Price enters into Kumo Cloud
6. Price forms a ZIGZAG pattern inside the Cloud (give allowance of few candles)
7. Price gives up against the Kumo Cloud and finally breaks the Support (the place
I’ve entered into a Short Trade)
8. Chikou-Span provides further confirmation in that direction

Hope you find it useful …


Ichimoku Learning: Trading Patterns
As I wrote earlier, I’ve been studying the Trading Patterns these days which just keeps
repeating themselves quite often when you work with Ichimoku System. This is one of
those Patterns which is highly profitable and the predictability rate is quite high for this
pattern which means less risk and a higher chance of profits.

Note that the pattern can appear on any symbol (and market) and timeframe, even on 1
minute chart

If you notice in these two charts the Kumo Cloud forms a typical shape and then the Price
(as well as Chikou-Span) breaks-through the Cloud … a perfect storm I call it
Ichimoku Learning: Trading with Chikou Span
Chikou-Span is essentially nothing but 1 period Simple Moving Average shifted 26
(as default settings, you can change it too if you want) periods back.

One of many Ichimoku Entry Strategies (yupps, its not just Tenkan-Sen / Kijun-Sen
Crossover that you should be looking for if trading with Ichimoku) is the Chikou-Span
crossover, look at the Red Circles I’ve highliighted on chart. These are areas you would
have entered into Short Trades if you were applying this simple trading strategy …

Can you count the Pips for your Profit/Loss from this chart ?

Ichimoku Learning: How to trade Kijun-Sen Breakouts


My first TP level for EURGBP was hit earlier at 0.8896. The reason I’ve posted this
chart is to share with you guys an example of trading on Kjinu-Sen Breakouts which
(more recently) I’ve found much more powerful and almost flawless (if proper rules are
followed), here are the rules I follow (for a Short Selling Positions, Long Positions will
have the rules reversed):

1. Price, Tenkan-Sen and Kijun-Sen are all below Kumo Cloud


2. Chikou-Span bearish

3. Price crossing Kijun-Sen from upward direction

4. Bearish (speacially Strong) TK/KS crossover is optional but once happens it will add
more power to the trade setup

5. Keep adding positions at the similar Kijun-Sen Breakouts during the trade

6. Once this whole setup is in place, you can even consider adding positions at Tenkan-
Sen Breakouts

7. Wait for the pair to reach Extreme Over-Sold status for Profit Booking

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