Ichimoku Kinko Hyo (or Huo)

I have pretty good indicators and have looked at this one a few times.

I am taking another look ... but deeper.

Anyone have any suggested resource material that thoroughly goes over this indicator?

Anyone use this regularly?

What I can see is that it works well for frames 1 hour or greater and
provides solid indication of forming reversals in those greater frames.

It seems to capture time and volume and price differently than western thought indicators.

 

It can look as ugly as sin...I don't care...

Use it for my portfolio, but modified parameters....it has proven to be very consistent...currently long 1 short 8 as at Jan 22.


NiN

 

A lot of info out there, but this pretty well covers the basics:

http://www.kumotrader.com/ichimoku_wiki/index.php?title=Introduction#Quick_Description

 

It works well on all timeframes, but each of them (and I guess each instrument)
has to have its own optimized settings. 9,26,52 will not work everywhere.

I do use it even on 5sec charts, and it is accurate.
Ichimoku settings have to be optimized to express cycles.
Look into the wavelength of your timeframe and instrument, and you will find it.
Try it together with CCI (also optimized to the wavelength of your TF)

 

I think I read somewhere that the whole Ichimoku setup was backtested and it wasn't profitable.

Of course, supporters will have their excuses.

It may be worth studying however. You might learn something from it.

 

I agree, if you trade every signal mechanically, it will never be profitable.

It is just a visual aid to dicretionary trading.
One can use it, or not, or use another indicator, or trade naked.
It depends on the individual, what is helpful for him in seeing and interpreting PA and
momentum in a meaningful way.

Profitability does not depend on Ichimoku, or any other indicator for that matter.
But it depends on the trader.
And, of course, on money management, risk management and psychology.

 

Just recently put this indicator on my existing setup on MAs (I trade only forex). It does give a clear indication of trend, trend change. But each market/instruments have their own busy/lull hours and if u can catch in the busy hours it works well. kumotrader site has some good video.