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

by Patel, Manesh

• ISBN13: 9780470609934
• ISBN10: 0470609931
• Edition: 1st
• Format: Hardcover
• Copyright: 2010-06-28
• Publisher: Wiley

Summary

The essential guide to today's hottest technical indicator-the Ichimoku Kinko Hyo cloud chartIchimoku 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 instrumentsFilled 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).

Author Biography

Manesh Patel, CTA, is the President of EII Capital Group, a financial company that offers a variety of services, including money management, consulting, and trading. He is a technical trader whose technical foundation is built around a Japanese trend trading system called Ichimoku Kinko Hyo. With Ichimoku Kinko Hyo, Patel trades the following instruments: currencies, futures, options, stocks, and commodities. He is actively involved in Ichimoku trading and runs www.ichimoku.net and www.kumotrader.com, which has 125,000 subscribers and is ranked 260 among active Forex Web sites. Patel is a member of the National Futures Association (NFA) and received his master's in engineering from Georgia Institute of Technology.

Table of Contents

Introduction	p. ix
Background	p. ix
Components of a Trading System	p. xv
Ichimoku Components	p. 1
Tenkan Sen	p. 4
Kijun Sen	p. 10
Chikou Span	p. 19
Kumo Cloud Components	p. 25
Senkou Span A	p. 27
Senkou Span B	p. 28
Kumo Cloud	p. 30
Ichimoku Trading Plan	p. 41
Components	p. 41
Strategy Description	p. 42
Ichimoku Backtesting	p. 45
Backtesting	p. 45
EURUSD-A Two-Year Backtest	p. 46
Summary-Two Years of Backtesting	p. 134
Post-Analysis	p. 137
Examining the Backtest Results	p. 137
Optimize Trading Plan	p. 144
Ichimoku Strategies	p. 149
Ideal Ichimoku Strategy	p. 150
Ichimoku Time Elements	p. 161
Ichimoku Time Elements	p. 161
Applied Trader Psychology/Doug Laughlin	p. 171
Is It as Easy as Just Being Taught a New System?	p. 172
The Problem We Have with Getting in Our Own Way	p. 172
Is There a Conspiracy Against the Small Trader?	p. 173
Traders Myth-Smart People Make the Best Traders	p. 174
Losing Trades Are Acceptable	p. 175
A Successful System Will Fortify Your Convictions	p. 176
Self-Sabotage and How It Applies to Your Trading	p. 178
In Summary-Trader Psychology Overall	p. 179
Day Trading with Ichimoku	p. 181
Consequences of Trading without a Trading Plan	p. 184
Trading Plan	p. 185
Backtesting	p. 186
Conclusion	p. 192
Conclusion	p. 193
Ichimoku Analysis Sheet	p. 195
Bibliography	p. 199
About the Author	p. 201
Index	p. 203
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