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Table of Contents

1. Introduction
2. Two words about the trend
3. Ichimoku
4. What is Ichimoku?
5. The five lines of Ichimoku
6. Ichimoku indicator settings and time intervals.
7. Finding important supports and resistances.
8. Ichimoku indicator signals
9. When we come out of position.
10. Equilibrium.
11. Some examples from live trading.
12. Losses, how to deal with it?
13. Practice, practice, and practice again.
14. Summary after a month.
15. Ichimoku and other indicators.
16. Successive inputs, successive signals.
17. Recent operations.
18. Summary.
Dictionary

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2 FxIchimoku

1. Introduction

I would like to thank you for purchasing this eBook, I hope it will be a good investment.
In addition to the book, along with the purchase, you have access to analyzes that I will
carry out based on this strategy on the website:
www.b-trader.com
admittedly, these will not be regular reports, as I do not sell signals, but I assure you that
you will be able to polish your skills.
My main task in this book is to teach you Ichimoku's investment strategy. Knowing the
strategy or creating your own is a necessary element in the work of every trader.
This publication is addressed to people who have already encountered trading, I will use
many abbreviations such as SL or TP, buy, sell or pips, etc., terms that are worth getting
used to if you do not know them yet, the meaning of which can be found at the end of the
book. Most of the examples in this book are operations that were opened on a demo
account between May 17 and June 18, 2012. It was about showing the sequence of
correctly opened operations using only the signals generated by the Ichimoku strategy. All
these operations are described in the following e-book - also the lossy ones, and I invite
you to carefully analyze them using the "statement" that you will find in the attachments
and carefully read them.
The following e-book is a description of
Ichimoku's strategy by Goichi Hosoda. With the
right money management and the correct
interpretation of the signals, it is a profitable
strategy, but I cannot unconditionally guarantee you
constant profits and I do not take any
responsibility for any losses, and this study was
written for didactic purposes.

I apologize for any spelling, grammatical and stylistic errors in Polish, the book was written
in Italian and was translated into Polish, which unfortunately had a negative impact on the
quality of the text, leaving nothing to the substantive side of the description.

This publication is protected by copyright, copying and distribution of the content without
the consent of the author is prohibited.

(C) Copyright 2012 by b-Trader

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 FxIchimoku 3

2. Two words about the trend

Although the main goal of this publication is to familiarize you with Ichimoku's strategy, it
should be written a few words about the trend according to classic technical analysis,
because Ichimoku is a strategy from the so-called trend following, so it is worth finding out
what a trend is for me.
I found the shortest and probably the best definition of a trend in John Murphie's book
"Technical Analysis of Financial Markets":
"In general, a trend is simply a direction the market is headed."
We can talk about an uptrend:

Fig. 1.
Downward trend:

Fig. 2.

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4 FxIchimoku

and about a sideways or horizontal trend - that is, no trend.

Fig. 3.

Our task will be to recognize the trend and "buy when the market goes up, sell when it
goes down, and we will be out of the market in a horizontal trend" and Ichimoku will help
us make the right decisions.

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 FxIchimoku 5

3. Ichimoku
Ichimoku Kinko Hyo 一目均衡表 is an investment strategy created by the Japanese
journalist Goichi Hosoda, who signed his articles under the pseudonym Ichimoku Sanjin.
Hosoda developed this strategy before the Second World War and worked on improving
Ichimoku for over thirty years, only in 1969 he published a book describing its principles.
Below is one of the few photos of Hosoda available to the public:

If anyone is interested, I heartily recommend buying Hosoda's original books

and referring to the website:
http://www.ichimokukinkouhyou.jp/service/gencho.html
Unfortunately, I have not found translations into languages known to me yet, and I
have only been working on Japanese for two years, a bit too little for a meaningful
translation of this text.
This technique only became very popular with
Japanese traders after Hidenobu Sasaka published a
book called "Ichimoku Kinko Studies" in 1996. This book
was declared the best book for technical analysis for 9
years in a row.
Unfortunately, this item has not yet been
translated into the Western language.

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6 FxIchimoku

In Russian, one of the first items is the book from 2003

"Индикатор Ишимоку как основа торговой системы" which can
be translated "Ichimoku Indicator as the basis of an investment
strategy" by Andrei Yurievich Terechov.

As for the English language, information about Ichimoku appeared in

various discussion forums, usually in the form of a typical short description: "if
red the dash will cross the blue dash and the green zigzag ........”etc. etc.

Only in the first forum devoted entirely to this strategy:

http://www.kumotrader.com/forum/
we will find the first comprehensive descriptions. Of particular interest is IchiWiki, a sort
of Ichimoku encyclopedia, in which we find a synthetic description of the basic
techniques used in this strategy:

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 FxIchimoku 7

Another interesting item in English is the book by Ms

Nicole Elliott entitled: "Ichimoku Charts: An Introduction to
Ichimoku Kinko Clouds", unfortunately I have to admit that this
item stimulates further searches by giving them the right
direction, rather than presenting Ichimoku techniques,
therefore the title : "An Introduction .." is most apt.

I met Ichimoku for the first time in 2007. Thanks to a colleague from the forum
devoted to forex, I got the investor's password for a real account, on which a Russian with
the nickname "Sarmat" was engaged in trading based on this strategy. In a few months,
starting at $ 1,200, he made nearly $ 100,000. In the attachment you will find the
statement of this feat.I managed to establish direct contact with Sarmat and started my
adventure with one of the best investment strategies. Seeing the results, I eagerly started
looking for any information about Ichimoku, most of the material is discussion forums,
books and training videos in Russian and English about which I wrote earlier, hours days,
weeks of following the charts and today, in retrospect, I can say how far from perfect it
was Sarmatian, although I must admit that there was something to envy:

Fig. 4. Sarmatian feat in 2007.

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4. What is Ichimoku?
Ichimoku is an investment strategy, as I wrote before, from the so-called "trend
following", it allows us to say with high probability that we are in a trend (not a correction),
determine the exact entry point to the market and several techniques to exit operation.

It is certainly not a strategy that catches the highs and lows on the price chart, it is
not a strategy that will not give up a single pip. But in return, Ichimoku allows you to earn
steadily, giving you time to apply healthy capital management, relatively stress-free,
without sitting in front of the monitor all day.

The strategy described in this way may seem like a game, unfortunately it is not,
there are false signals, the price suddenly turns back and goes in the opposite direction, so
we will learn how to come out with a loss without ruining our capital. It is a real trading
strategy that takes into account all possibilities, but the most important thing is that
Ichimoku, which I am pleased to introduce to you, earns in the long run.

Ichimoku is very popular with Japanese traders, and although it works great on all
currency pairs, it is always worth considering such pairs as GBP / JPY EUR / JPY and
USD / JPY using the original settings. As Mrs. Elliott wrote in her book: when something
starts to happen on the market, I want to see what others see.

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5. The five lines of Ichimoku

The Ichimoku indicator consists of five lines, four averages and the fifth line is the price line
shifted back by 26 candles.

Tenkan Sen 転換線

Kijun Sen 基準線

Senkou Span A 先行スパン１

Senkou Span B 先行スパン2

Chikou Span 遅行スパン

Although I met the sixth line, the price line shifted by 26 candles forward, it was
presented at the conference of traders in Novosibirsk in 2004 by Andrei Yurievich
Terekhov, which I mentioned earlier, but frankly speaking it was of little use, I believe that
its effectiveness was completely accidental.
The whole strategy is based on a correct interpretation of how these lines stack up in
relation to each other and to the price line.

Here's what ichimoku looks like in our Japanese colleagues:

Fig. 5.

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Tenkan Sen

This is the average we get by adding the highest high and the lowest low reached by the
price in a given period and divided by two. Pattern:
(HH + LL) / 2 for the last 9 periods.

Fig. 6.

Please note that the Tenkan line differs from the usual moving average, this will be quite
important to us when we determine which direction the price will move in. The Russians
call this the correction line. In the picture below you can see the difference, the tenkan is
facing up and the average is moving downwards:

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 FxIchimoku 11

Fig. 7.
So it is easy to guess that the direction of the tenkan line will be important for us when
opening a position. We never open a position in the opposite direction to the tenkan line.
As you can see, after the market opened, tenkan was right and our operation was closed
by TP:

Fig. 8.

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12 FxIchimoku

Kijun Sen

This is the average that we get according to the formula (HH + LL) / 2 for the last 26
periods, i.e. the highest maximum and the lowest minimum achieved by the price in the
last 26 periods

Fig. 9.

Fig. The 10th kijun itself is also a good trading instrument.

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 FxIchimoku 13

Chikou Span

It is a line chart that is set back 26 periods and is used to confirm the direction of the
trend.

Fig. 11.

Fig. 12. Chikou may seem of little use, but it is not.

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Senkou Span A

This is the average we get by adding Tenkan Sen to Kijun Sen and dividing by 2
and placing the result 26 periods ahead.(Tenkan Sen + Kijun Sen) / 2
This is another specificity of Ichimoku, the average we place on the chart 26
candles ahead and see how the price behaves relative to that average in the future.

Fig. 13.

Fig. 14. Senkou Span A

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Senkou Span B

The senkou Span B line is obtained by adding the highest maximum and the lowest
minimum from the last 52 periods (candles), divide the result by two and place by 26
periods (candles) ahead.
(HH + LL) / 2.

Fig. 15.

Hosoda considered this average very important. Senkou Span B, if it is horizontal for a
long period, that is, it does not rise or fall, attracts the price to itself.

Below, on the example of the AUDUSD pair, we can see perfectly how it works:

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16 FxIchimoku

Fig. 16.

The price pierces the downward cloud (Fig. 16), giving a signal of growth, but
equilibrium does not exist here, the cloud is downwards and senkou span b is a flat
horizontal line only "puncture" the channel, the average of which is senkou span b will
confirm the start of the trend:

Fig. 17.

As we can see in Figure 17, the price was "attracted" by the flat senkou span B and
our predictions marked with red arrows in Figure 16, have proven themselves 100%. What
happens next?

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 FxIchimoku 17

Fig. 18.

Flat senkou span b did not even allow the fall, although the signal for sale was very
bright, the price again moved away from the "flat" senkou span b and immediately returned
to it. With red arrows I marked senkou span B.

Only now that senkou span b has moved to create a growth cloud, we can invest
and open a "buy" position, but the attention of senkou span b is relegary, so soon we can
expect a cloud break and a possible decline:

Fig. 19.

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The space in the chart between Senkou span A and senkou Span B is called the
cloud "kumo". Kumo is the heart of the whole strategy, thanks to kumo we can see
immediately whether we are in an upward or downward trend. If Senkou Span A is above
Senkou Span B then we have a growth cloud, in our blue chart, if Senkou Span A is under
Senkou Span B then we have a downward cloud, on our green chart:

Fig. 20. Pack cloud and growth cloud

And this is how the whole thing looks like:

Fig. 21.

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In the attachments to the e-book you will find a template called "ichimokucolor", at
first it may seem a little too colorful, a matter of habit, but it is certainly very readable when
it comes to signals.

To impose a template on the price chart on the metatrader platform just copy a file
called Ichimokucolor to our metatrader in the templates folder:

Then press the right mouse key on the price schedule, choose the string template and
our template Ichimoku color.

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20 FxIchimoku

Or if someone prefers the original version proposed by metatrader:

Fig. 22.

At first glance, it is easy to see where you could enter the short position, but how to use
the whole system we will find out in the next chapters.

Fig. 23.

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 FxIchimoku 21

6. Ichimoku indicator settings and

time intervals.
In the previous chapter, describing what the ichimoku turkey consists of, I used the
original settings given by Hosoda, or 9,26,52. However, given that the system was created
to work on very large time frames (one-day candles), and for the needs of the Tokij Stock
Exchange, we can therefore often meet in discussion forums and literature with an attempt
to match, in fact, "fine-tune" the indicator to a specific forex market and to smaller time
frames. Of course, everything is allowed, and the search for optimal settings as much as
possible advisable. Ideally, the new settings have some logical explanation. For example,
standard settings on weekly candles give us a picture of a couple's situation from last year.
As we know, the year is 52 weeks, half a year is 26 weeks, etc. and so on.
To change the settings on metatrader platform, just find the list of turkeys by right-clicking
on the price chart:

We select a list of turkeys and our turkey appears to us:

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22 FxIchimoku

Click twice and open the window on the parameters tab:

Now we can change the turkey settings according to our needs.

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Fig. 24. Original settings on weekly candles

My first teacher of ichimoku strategy, he used very interesting settings:

8, 34, 144 on four-hour candles, as you can see in the report in the annex, these settings
did quite well, although it is difficult to find any logic here, but it immediately catches the
eye that these are Fibonacci numbers and it looks more like numerology than the logical
"embrace" of time ranges.

Fig. 25. Settings 8, 34 144

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24 FxIchimoku

Indeed, this too can be earned, although I believe that the delay of the kijun line is
too great if we wanted to use one of Hosoda's techniques and put on this line a movable
stop lose that earnings would be much smaller than expected.

Other interesting settings include:

2, 24, 120 on hourly candles

Fig. 26. Settings 2, 24, 120 on one-hour candles

Here it is easy to guess that the author tried to find trends on a scale of one day (24
hours) and one week (120 hours to 5 days), I tested and these settings, but the results
were not very encouraging.

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 FxIchimoku 25

A little better attempt at the same approach is the settings 24, 60, 120

Fig. 27. Settings 24, 60, 120

I, after many attempts and searches, remained with rather unusual settings, which
arose when testing the machine based on ichimoku strategy. It turned out that on four-hour
candles the best results are given by settings of 7,28,119. I've been working on these
settings for several years now, which has allowed me to observe new dependencies and
new input signals.

Fig. 28. Settings 7, 28, 119 to D1

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26 FxIchimoku

Fig. 29. Settings 7,28,119 on H4

As for the time intervals, I think the best to trade are four-hour and one-day
candles, watching couples on these TF quietly work peering into the computer or on a
mobile every four hours for 15 - 20 minutes. We will take into account that Ichimoku, as I
wrote this trend follower, that is, a system that assumes entering the market when on the
basis of our averages we find that we are in a trend, and leaving the position when we
have the first suspicions of the trend ends. It is known that defining any trend on one-
minute candles is a rather difficult task, Personally, I avoid TF smaller than 1h, although I
honestly admit that I met people who scalped very effectively using ichimoku for 2 TF: 1
minute and 5 minutes. Of course, if you work on candles 5 min on this TF look for both
signals to enter and output, there is nothing worse than opening a position on a small TF
with TP of the order of a few pips and SL found on 4H or 1D candles at a distance of
several hundred pips.

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 FxIchimoku 27

6.Finding important support and

resistance.
It is very important in trading to find and mark strong support and resistance and
from this we will just start. I often did not open an operation, although all the conditions
for opening were met, because the price was too close to some strong
support/resistance. In such a situation, I wait for the price to break such a line and only
then do I know that the trend is so bright that I can confidently invest.
This is the situation of 15 April 2012, where on a pair of gbpusd all the
conditions for the sell entry were met (in Figure 24 a candle marked with an arrow),
however, the presence of important support nearby told us that the operation is too
risky, only a possible puncture of this support would be a signal to open the sell
position.

Fig. 30. Important support that allowed me to avoid loss

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28 FxIchimoku

To determine the support and resistance we use chikou span line, we start with a chart
with monthly candles and look for reboards of this line, which are near the current price:

Fig. 31. Support and resistance marked on monthly candles with the help of chikou.

With red arrows I marked the collapse of the chikou span line, see how important
support the line at the level is of 1.26604, on monthly candles served us as support from
which the price bounced as much as three times.

Fig. 32. After a few months we can see the line at the level of 1.26604 has become resistance.

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We use the same procedure in the chart with weekly candles:

Fig. 33. Support and resistance on weekly candles.

With the arrows I marked the collapse of the chikou span, which is closest to the
price, I also changed the color of the line, depending on the time interval on which they
were created, so as to easily dissolute the validity of such support or resistance.

The same is done on the daily chart, in the story I'm looking for the kinks of the
chikou span line near the current price, as you can see in the figure perfectly suitable for
this purpose the collapse of the chikou span line from November-December 2011:

Fig. 34. Support and resistance on daylight.

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30 FxIchimoku

And this is what our work looks like in a four-hour chart, please note how the support lines
worked, especially the support line marked on the monthly candles:

Fig. 35.

Once drawn support and resistance will be very useful to us in trading, over time
you will learn to catch the most important ones, which were confirmed at least twice by the
chikou span line.

Fig. 36. Support lines become resistance after a month, I do not open the operation until the
resistance is pierced.

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6 Ichimoku indicator signals.

Ichimoku indicator signals can be divided into three groups:

i. Signals that arise from ichimoku line behavior:

1. cut the kijun line through the tenkan line
2. the intersection of the senkou span B line through the senkou span line A,
3. three lines.

ii. Signals that arise from price behavior relative to ichimoku line:
1. price bounce from any ichimoku line,
2. through the price of any ichimoku line.

iii. Signals that arise from Chikou Span:

1. puncture of the price line undone by 28 periods by the Chikou Span line,
2. 28 periods of price by the Chikou Span line.

Group 1 and group 2 signals can be strong, weak, and neutral. So let's see what it looks like in
practice:

Gupa first

1. The Cross of Tenkan and Kijun, that is, when the red line pierces the blue line, is
probably the most famous signal in ichimoku. This signal is obtained when the tenkan
dream (red line) crosses the sleep stick (blue line). If the kijun is cut from the bottom up
we have a signal to buy (increase), Hosoda called this signal a golden cross.
If the dream kijun is cut by tenkan from top to bottom we are dealing with a signal for sale
(fall), Hosoda called this signal a dead cross, or a cross of death.

We are dealing with a strong signal when a golden cross (growth) is formed above
the cloud (kumo), and a dead cross (probate) is formed under the cloud:

strong growth signal, golden cross over the cloud:

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Fig. 37. Golden cross over the cloud – a strong signal for buying.

Strong downward signal, dead cross under the cloud:

Fig. 38. Dead cross or cross of death under the cloud – a strong signal for sale

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 FxIchimoku 33

Weak downward signal, dead cross over the cloud:

Fig. 39. Dead cross over the cloud - a weak signal for sales.

Weak growth signal, golden cross under the cloud:

Fig. 40. Golden cross under the cloud - weak signal to buy.

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34 FxIchimoku

The signal is neutral, that is, the signal is not there when the price is in the cloud, or the
signal is created in the cloud:

Fig. 41. 4 false signals

As you can see, we saved ourselves 4 false entries, only the fifth signal was real and
allowed to earn beautifully.

Hosoda also drew attention to the angle at which these two lines intersect, the larger the inner
angle, the stronger the signal.

1. The intersection of the senkou span B line through the senkou span line A, this
is a good signal for longer time intervals, at least for day candles D1. This signal is
created when senkou span A crosses the span Senkou B

As I wrote earlier the space between senkou span A and senkou span B we call the
cloud (kumo), our cloud forms 28 candles in front, which gives us a very clear picture of
what we can expect in the future. If senkou span A crosses the line senkou span B from
top to bottom we have a signal for the sell input (drop) and the cloud in our chart that
begins to form is a green cloud or a downward cloud:

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Fig. 42. Senkou span B cut through Senkou Span A announcing the fall.

In this case, we also have a price under the cloud which strengthens the signal strength (strong
signal).

When the senkou span line A pierces the senkou span B line from bottom to top, we have
a buy signal and the cloud that is formed on our chart is blue or rising:

Fig. 43. Senkou span B cut by Senkou Span A announcing the increase.

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36 FxIchimoku

Below (Fig. 44) you can see how the situation developed, the growth signal was very
strong because the price was above the cloud:

Fig. 44. Result of senkou span B line intersection signal through senkou span line A

I use this signal to add flights to an existing position, just when it is created, other signals
have already allowed me to open operations in this direction.

1. The last signal in the first group, that is, the signal that is formed from the ichimoku
line is the three-line signal. This signal occurs when the three Ichimoku lines are in this
order, counting from the top:

a. growth signal: tenkan, kijun, senkou span A

b) downward signal: senkou span A, kijun, tenkan

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growth signal:

Fig. 45. The growth signal of the three lines.

As you can see we have the arrangement of three lines in order from the top: Tenkn,
Kijun and Senkou Span A, this gives us such a result:

Fig. 46. The result of the three-line signal.

Ważne by linie znalazły się w takiej własnie kolejnosci, poniżej widzimy:

Number one is tenkan
Number two kijun sen
Number three senkou span a, with growth signal

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In the image below (Fig. 47.) I marked with the letter x senkou span a, which is
under senkou span b so as an increase signal is invalid, and indeed the price has just
dropped, while the number three senkou span a, which is above the line senkou span b
confirms the increases:

Fig. 47. Compare the absence of a three-line signal with a real signal.

Group Two

In the second group of signals, the main character is the price, the signals arise when:
1. Price bounces off any line ichimoku:

Several times the reflection from the spanB

senkou line:

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 FxIchimoku 39

Fig. 48. Price bounce from senkou span B.

Reflection from senkou span line A:

Fig. 49. Price bounce from senkou span A.

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Reflection from the kijun line (in green circle) and tenkan marked with arrows:

Fig. 50. Price bounce first from kijun line and then several times rebound from tenkan line.

I use reflection from the cloud to take a position, while the reflection from the tenkan line is
used to add flights to an already open position, here's an example:

Fig. 51. Repeated reflection from the tenkan line.

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When I see that the price "tires" with the tankan line, that is, closes the candles near
this line, I am ready to add flights to the position previously opened, in the picture above
we had five such situations. I open a position when the candle next to the candle that
bounced off the tenkan line exceeds its maximum:

Fig. 52. Buy on the bounce from the tenkan line.

Or when the price trumps the minimum of the previous candle, which bounced off
the tenkan,

Fig. 53. Sales on the bounce from the tenkan line.

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42 FxIchimoku

Of course, you should always use common sense, and consider well how
much we can lose from what we have already earned if the price goes the other
way.

Now practicing: On historical data, find three major trends and at least
three reflections from the tenkan line, calculate how much you would
earn by opening one position only, and calculate how much you would
earn by buying on reflections.

Remember to buy ONLY when the previously opened position is on the plus side.
It's the trader's biggest sin, buying without any signal in loss positions with the hope that he
can bounce back now and close both positions to zero in a moment. Unfortunately, the
account closes to zero.

a) Price breaks through any ichimoku line:

The strongest signal in this group is the cloud break through the price signal:

Fig. 54. Cloud break signal by price.

Above (Fig. 54)we see three such signals when the price pierces the cloud from the
bottom up we have a signal to buy (increase), if it pierces from top to bottom then we have
a signal for sale.
If the price pierces the line senkou span A coming out of the cloud we have a strong
signal if senkou span B signal weak.

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A strong downward signal or price output down from the downward cloud:

Fig. 55. Strong downward signal, the price breaks down the downward cloud (green).

A strong upward signal, i.e. price output up from the growth cloud:

Fig. 56. Strong growth signal, price trumps up-to-top growth cloud.

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Price breakthrough tenkan line:

Breaking the tenkan line by the price for me matters only when the price returns to the
trend, i.e. after a small decline in an uptrend, the price is below the tenkan line (A), returns
and closes again above this line (B) I can open a position again buy, sometimes when the
price moves far away from the cloud, the closing of the candle below the tenkan line may
mean for me a partial closing of profit (A):

Fig. 57. Puncture the tenkan line by the price.

Piercing the kijun line by the price:

Crossing the kijun line by the price usually means closing the position for me, because I
often use the kijun line as a Stop Loss, in the picture 59 we can see the correct entry for
the buy and the closing of the position after the price crosses the kijun line:

Fig. 58.Puncture the kijun line by price.

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 FxIchimoku 45

Fig. 59.Puncture the kijun line by price.

I also noticed another interesting dependence, if the price crosses the kijun line in
the opposite direction to the trend, then often in a relatively short time comes to the cloud
which allows us to have a short operation, below we see a candle marked in a circle that
closes below the kijun line, a signal to open a short position. In this case (Fig. 60.) safe TP
is the senkou span line A, marked with a circle:

Fig. 60. Puncture the stick line by the price and get to the line senkou span A

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46 FxIchimoku

Fig. 61. Puncture the stick line by price and get to the line senkou span A at a loss.

As you can see in picture 61, this is a rather risky ass.

Third group

The last group of signals are chikou span signals.

The Chikou span line is usually used as a confirmation, if I have any signal to open the
position then I am always looking for confirmation in this line. If the chinkou span is
above the price from 28 periods ago then I can buy if it is under the price from 28
periods ago then I can sell.
Here are some examples:
Below (Fig. 62) we see a situation where we have a very strong signal for sale, that is,
exiting the green cloud (puncture by the price of senkou span B), but we do not use the
signal and do not open the position, because we do not have confirmation in the chinkou
span line, which is located above the price line from 28 periods ago:

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 FxIchimoku 47

Fig. 62.
As you can see below, it is good that we did not open the sell position, while the signal
slightly weaker for the purchase, that is, the price output from the green cloud to the top, is
confirmed by chinkou span, because this line is located above the price line from 28
periods ago:

Fig. 63.

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48 FxIchimoku

Fig. 64.

Although the author of the system in chikou was interested only in cutting or
rebounding from the price line from 28 periods ago, we can see that it works great and
reacts with other ichimoku lines from 28 periods ago which gives us additional signals:
The reflection of the chikou span from the cloud, although it may have seemed to us with
the maximum marked red arrow that the price will jump out of the cloud, the chikou line
bounced perfectly from senkou span B and senkou span A, (Fig. 65):

Fig. 65.
I do not use this signal as absolutely binding, even if Chikou is on the opposite side
of the price from 28 periods ago it does not mean that I can not open a position, only I am
very cornered when Chikou approaches the price line, as we will see later often bounces
off this line and from other averages. If it crosses the price or any average then we have
another signal to add flights to the previously opened position. Conversely, if we have
Chikou on our side, we go boldly more flights.

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9. When we leave the position.

We have several techniques for getting out of position using ichimoku.
The first is to set sl on more support or support, if the price moved immediately in the
opposite direction from the direction we assumed we must be prepared for a decisive exit
at a loss. Of course, it would be good for everyone to develop optimal capital
management. I met traders who have never risked more than 2% deposit for the operation,
never opened a position if the ratio of expected profit to possible stray was less than 4:1 ie
if I earn it I earn 4 if I lose it I lose it
1. TP and SL were determined rigidly by support and resistance lines.
Below is an example of such an operation, where support and resistance were designated
on weekly candles, the entrance sell in a green circle:

Fig. 66.

As you can see above, the ratio of possible earnings to losses is very good, so I
can confidently invest.

Personally, I often use the kijun line as SL, if the price closes under this average
and has been rising so far or over this rope if it was downwards it means that we can
prepare for a larger correction or even a change in the trend, in this situation it is better to
close the operation. Of course, I use this technique only if the price was "discharged" by
the remaining lines ichimoku:

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Fig. 67.
In the image above we see the perfect entrance marked with a green circle, three
perfect reflections from the kijun line, the price is "drained" by all ichimoku lines down and I
leave only after the candle closes over the kijun line. The operation took a long time but
the earnings were front.

Another way to exit the operation is a long flat Senkou Span B, if I have such a situation
and the operation was opened correctly then I should already have a nice profit, close
operations because I approach HH or LL, which can act as support or resistance:

Fig. 68.

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I would like to mention another important aspect of patience, we work at high

intervals, so sometimes we have to wait a very long time for the expected effect. When the
trend starts, we jump in and go out only when we have a very clear signal to go out.
Sarmat suffered from impatience, so I allowed myself to write about him "how far he was
still from perfection". Getting out of surgery too early.

In the image below you can see the sell input after the price bounces off the cloud
and exits when you encounter the first support (this operation will later be described in
detail). I earned 1200 pips here (A), but if I held on to the rules and closed the operation
only after cutting and closing the candle above the stick line now the situation would be
much better, my SL would be 800 pips lower than the closure of the operation (B) not to
mention that I would be on a plus equal to 4000 pips (C), where the price would certainly
still fall, it would be enough to put sl also kijun line and the earnings would be much higher
:

Fig. 69.

Recently, I listened to the excellent training of Dr. Dariusz Swierek, he introduced

the term High Quality Tradethere, that is, the execution of trejd from start to finish
according to the assumptions of the strategy. The price turned around and I was already
on a wonderful profit? It's hard, I've done my job properly, if I stick to it consistently, I'll earn
money in the long run, if not then I risk cutting profits and letting losses grow.

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And this is how the exit from this operation should look like:

Fig. 70.

Only after closing the candle above the stick line do I close the operation, the result
would be almost 4 times better!!!

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10. Equilibrium.
In some texts you will find the name "Equilibrium chart at a glance", that is, let's call
it "balance on the chart at a glance". Unfortunately, no one explains it. For a long time I
could not understand what was going on with this balance, only a picture like the one
below helped me understand it, and the rest I read on the Russian forum dedicated to this
strategy:

Fig. 71.

Imagine that the price has been blocked, all candles are one point, which is both the
opening of the candle, the closure, the maximum and the minimum, any average such
candles would be horizontal lines and we would have to deal with equilibrium in the sense
of Hosoda.

We see something similar in Figure 71, on a pair of EURCHF

Every time the price strikes out and moves away from the averages, the balance is
shaken. If it moves away gently, all average ichimoku is a trend. If one candle strikes the
opposite direction from the color of the cloud, leaving all the averages behind, the balance
is shaken and certainly the price through correction will return to the averages. Below (Fig.
72) we see this situation:

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54 FxIchimoku

Fig. 72.

Fig. 73.

And this is the whole secret ichimoku I see immediately if I'm in a trend and I can
earn something on it or it is some temporary anomaly and with trading better to refrain.

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11.A few examples from trading on

Live streaming.
From the absence of equilibrium, I will start showing and commenting on the
operation "live", in a specially opened account for the need of this guide.
At first glance on the AUDUSD pair, on May 23 on D1 candles we can see a beautiful
downward trend:

Fig. 74.

Observing the bare price, we have no reason to think that the price should stop, or
make a small adjustment.
Only when I put the indicator ichimoku I see that this couple very jumped from all mediums
and that it will have to stop. Either wait until the averages reach the price to re-enter the
balance, or the price will bounce up slightly to make a small correction and fall down again.

Immediately we see that something is wrong, that the price has distanced too much from
the other lines ichimoku:

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56 FxIchimoku

Fig. 75.

In the image below (Fig. 76) we can see how we can help ourselves to determine how
far we are from equilibrium:

Fig. 76.

If we look at historical data, we can easily notice that the price rarely so far
distanced from the average ichimoku, of course, each pair has its "ability"

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or the "range" of moving away from equilibrium, for example, you cannot compare eurgbp
pairs with gbpjpa in pips.

It will be your homework to trace the maximum deviations of the

price from the average ichimoku on the historical data for each pair
individually, in the future it will be very valuable information for you.

Usually for me it is time to close open positions, you already know the rules for
opening positions, so you can easily determine where it was necessary to take a short
position in the image above, I wrote earlier it is not a system that catches peaks and lows,
but a system that with great probability determines that from point A to point B you will
earn on the fall.
At this point, it would be a good point to close at least most of the perk operations.

As I have a declining position, I risk a buy position, knowing that I should earn a
few pips.

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Fig. 77.

In this case, I have previously specified support and resistance on monthly and
weekly candles, i open the position using two TF D1 and H4.
My TP became a kijun dream line on a 4 hour chart, which perfectly coincides with the
tenkan line on chart D1, you could take a chance and wait until it hit the cloud, but in this
case I preferred to close a little earlier, a very large green downside cloud can repay us a
prank, better not risk it:

Fig. 78.

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The operation was closed by a modest TP and on H4 now looks like the following:

Fig. 79.
On schedule 79 we now have the ideal position to enter short, the price has a high
probability of rebounding from the cloud – in the image you see the arrow number 1
(signal 2a),chikou is still below the priceand can also bounce: arrow number 2 (signal 3b).
So we have double resistance at the same level, of course, we sell as soon as the candles
begin to wonder what to do next and show that they respect our lines:

Fig. 80.

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Here's a sequence of how the market behaved:

Fig. 81.

Fig. 82.

Above (Fig. 82) we see the price perfectly "flowing" on the outer edge of the cloud, which
gives us more and more reassuch that our ichimoku lines are as respected as possible.

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We also see that in the meantime chikou was on the other side of the price, for me it
means that the price can again slightly recon up and fly up or partially close operations:

Fig. 83.
Below (Fig. 84.) we see the situation with the situation in the account, I show it so
that you can see where the positions were closed with a profit and where I opened the next
positions to sell.
As you can see below, it may happen that the capital in open positions is much larger than
the balance:

Fig. 84.

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62 FxIchimoku

In such a situation, I close two operations and leave the third to profit to increase, in
the worst case I will close it to zero. Now when we start moving away from the cloud there
are new signals, usually it is a reflection from the previously selected support / resistances,
I go again, and it will continue to sell.
The first operation still open, currently on a big plus, allows me to risk a little more and
open more flights:

Fig. 85.
Note this is very important:
the price falls, I specify the first TP or more support, there I close 2/3 of the operation, the
price falls further, Waiting for the price to turn back, support will become resistance and
again sell by setting precisely SL:

Fig. 86.

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The same situation on the daily chart, the perfect reflection from the resistance line
allowed us to perfectly enter into operations:

Fig. 87. The opru line marked with arrow on which I opened the next sell operations

And this is what all operations closed on the steam audusd look like:

Fig. 88.

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64 FxIchimoku

At the same time we had a very nice signal on the gbpusd currency pair:

Fig. 89.
We have a very clear way out of the cloud, but we behave very carefully because:
we have strong support set at higher time intervals, the cloud is increasing and senkou
span B is increasing.

Below the support and resistance on the weekly candles, pay attention to the
horizontal line that coincides with the long senkou span B

Fig. 90.

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 FxIchimoku 65

The daily chart shows how the price respects our support lines:

Fig. 91.

In this situation, my SL will be closing out the price after breaking the tenkan line and not
kijun as usual.
Below (Fig. 92.) the same situation on daylight, here we can already notice that the
support unfortunately worked and the price bounced wandering up, I hope that senkou
span b will not be defended and will not let the price into the cloud:

Fig. 92.

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WOOOW see how the price accurately bounced off the line senkou span B, pierces the
previously specified support and follows in the direction specified by us:

Fig. 93.
Further support that will make us a little sick:

Fig. 94.

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Finally, we achieve our first targets:

Fig. 95.

W takiej sytuacji na większych przedziałach czasowych szukam następnych

wsparć, które staną się moim następnym targetem:

Fig. 96.

And as with the audusd pair, part of the position I close and open new ones after the price
bounces off the resistances that work for me:

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Fig. 97.
In the image below (Fig. 98) we can see that the targets specified in the
weekly chart have been reached, unfortunately I made a mistake:

Fig. 98.

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I did not set tp, I could not in any way check what is happening in the market, and instead of
duuuuu very profitable i ended the operations with profit (only):

Fig. 99.

If you mark the lines of support and resistance well, you will see how great they
will perform in the future.

Friday afternoon, operations closed, profit is satisfactory enough I don't have to risk
leaving operations open for the weekend and now on this nagging side: losses.

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11. Losses, how to deal with it?

The main thing is to know when to leave in case of loss!!! When opening an
operation, we need to know exactly where our entry signal ceases to exist. Fortunately, I'm
looking forward to a fairly large period of time to be able to calculate any profits or losses.
Here is the sequence of input reckless to the end and worse complete lack of discipline at
the exit.

FOR EUR USD:

After leaving the cloud (green – that is, a weak growth signal) and cutting the tenkan
line, I open the first operation, after closing the candle, buys, because the candle
confirmed the desire to grow.

Fig. 100.

I did not take into account the falling senkou span b, which will even for a moment attract
the price.

The right place to close will be the kijun line, that is, if the price closes under this line
we have a high likeness that it will fall all the way to the outer part of the cloud. If I opened
the position with fewer flights, I could take a chance and wait until it pierces the soup blue
cloud (Senkou Span B) and only then close.
Since I want to multiply profits quickly, I open a position with big flights and I have to be
punished for it:

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 FxIchimoku 71

Fig. 101.
As you can see in the image above, I had a few warnings to get out of this operation,
only the threat to the capital forced me to close the operation at a loss.

Today, the next operations, the interesting situation on the EURUSD pair allowed us to
open the operation. First, waiting for how the price will behave relative to the kijun line:

Fig. 102.

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52 minutes before the closing of the four-hour candle (Fig. 102.) each scenario was
possible, the price can bounce off the stick line and fall down or cut this line and close
above it which will be a signal to buy.

Fig. 103.

The position was opened, the four-hour candle closed over the kijun, tenkan indicates an
increase, unfortunately not immediately the price goes our way:

Fig. 104.

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Closing the price under the kijun line would certainly be a signal to close the position
fortunately it was not necessary the price bounced off the blue line and soared upwards:

Fig. 105.

Closing the next candle gives us the next signal from series 1a or cutting the kijun line
through the tenkan line, the so-called golden cross, unfortunately weak because it is under
a large green cloud, for a few pips we risk and open the next buy.

Fig. 106.

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As you can see below (Fig. 107.) the price went up which allowed us to earn again,
attention is a good place to get out of the operation because chikou can bounce off the
price (the situation marked in the green circle in the image below), being also close to a
large green cloud I have a high probability that the price will jump down before the cloud
touches:

Fig. 107.
Another important reason why we should just now get out of surgery is quite serious
resistance at the price of 1.25388 on weekly candles. The price has already reached the
level of 1.25413 and has turned back:

Fig. 108.

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If anyone is curious, they may notice that the same resistance already worked
(always on weekly candles) in February 2005 and May 1996.

And this is the completion of the operation on eurusd at the H4 interval, you could
still boldly risk entering the reflection from the kijun line. Currently, the price we have in the
cloud so we are waiting for a possible exit from the cloud to tradować further:

Fig. 109.

Unfortunately, practicing real-time charts on four-hour candles is a slow process to

achieve mastery in ichimoku interpretation, you have to practice a lot. Over time, we will be
able to draw more and more information from our price chart.

Below I will analyze ichimoku inputs using historical data, the idea is to:
practice, practice and exercise once.

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12.Practice, practice and practice

once exercise.
The best way to learn a strategy is to practice on historical data, MetaTrader makes
it easier to function as a tester, inflate throw some test machine, put my favorite template
"ichimokucolor" and practice. I start with my favorite EURJPY pair, in early December 2011
I had a great signal to sell on this pair. Below you can see the signal 2b,that is, the
intersection by the price of the ichimoku line. In this case, we are dealing with a strong
signal because the price comes out of the green cloud down (1), the tenkan line is
definitely downward (2) and the chikou span is on the appropriate side of the price, that is,
below (3)

Fig. 110.

As I conduct exercises on the tester, I will analyze the signals in a very simplified
way, as a novice trader would do. I do not have access to higher TF, so I also can not use
a very important and helpful technique of support and resistance. I don't see what's going
on in chart D1, I'll only use input and output signals.

Below (Fig. 111.) we can observe that the operation from the first days of December
allowed me to earn and only on December 19, I have a signal to exit the operation or cut
through the price of the kijun line and close the candle above this line:

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Fig. 111.

Below (Fig. 112.) we can see that for the holiday period the price has rested, waited
for ichimoku lines, which brought us closer to the "equilibrium", after which the next signal
for sale appears:

Fig. 112.

Again, we are dealing with a signal 2b or puncture by the price of any line ichimoku
(1), the signal is strong because we come out of the green cloud (downward) down.
Chikou is below the price (2), the tenkan line may be a little disconsolate though generally
downward (3), but the kijun line definitely indicates us a decrease (4).

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As before, our signal for the exit will be to cut through the price of the kijun line
and close the siwiecy above it:

Fig. 113.
The point "a" is the entry point of the starting point "b", as you can see the earnings
was great. After closing the candle we have a signal to buy 1a, unfortunatelythe signal is
very weak because we are very close to a large green cloud and the chikou line is close to
the price, our TP in this case would be anexternal line of clouds, rather not worth the risk.
Below (Fig. 114.) you can see with what precision the price bounced off the cloud,
crossing the tenkan and kijun line, giving us another signal for sale:

Fig. 114.

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Above (Fig. 114) we see a tenkan line that indicates to us that we can still expect a
decrease (1), chikou span is on the appropriate price side (2). Although the intersection of
the kijun line through the tenkan line in this case is difficult to call a cross, but we are
satisfied because there was a signal 1c or signal three lines.

And here's how the situation unfolded:

Fig. 115.

Cena odbiła się od poziomu 97.010, i podskoczyła do góry, zamykając się ponad
linią kijun i to w dodatku w chmurze, zmusiło to nas do wyjścia z operacji ze stratą. Na
szczęście w porównaniu z poprzednimi zarobkami strata była niewielka. Zawsze
wychodzimy z operacji gdy mamy jasny sygnał, nie czekamy aż stanie się cud i cena
zawróci. Nie istnieją systemy które dają nam 100% zyskownych wejść, dobry system to
taki, który zarabia dużo więcej niż traci, reagując natychmiast na sygnał zamknięcia
obcinamy straty. Doskonały przykład widzieliśmy na parze EURAUD, pomimo kilku
jasnych sygnałów na wyjście miałem nadzieję że cena zawróci, aż zostałem zmuszony by
wyjść z operacji z ogromną stratą.

Cóż zobaczmy jak dalej rozwninęła się sytuacja, poniżej widzimy że miałem kilka
dni odpoczynku, gdy cena jest w chmurze NIE HANDLUJEMY. Dopiero wyjście ceny po
drugiej stronie chmury mówi nam że najprawdopodobniej nie jest to już tylko zwykła
korekta, znajdujemy się teraz w trendzie wzrostowym a wyjście do góry z zielonej chmury
jest pierwszym słabym sygnałem do kupna:

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Fig. 116.

Since the signal is weak and the kijun line (my SL) very far, we enter with little
capital, only when the price comes out of the cloud a second time, in the distance we see a
blue cloud we can enter with a little more capital. As usual, the signal for the output will be
to cut the kijun line by the price.

Fig. 117.

In this case, not only come out of the operation "buy" but also we can open
modestly "sell" because we have a weak signal for the sale of 1a or puncture the kijun line
through the tenkan line.

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Our TP will be an external line of clouds or senkou span A:

Fig. 118.

Above (Fig. 118.) we can see that the operation was closed by TP and how well the
senkou span B line was defended, no candle closed below this line, so there was no signal
for sale. Signals take place only after the candle closes, often the price bounces, we need
to show great patience.

Only after a few days of wandering in the cloud we have another very strong "buy" signal:

Fig. 119.

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The price comes out of the growth cloud (1), chikou is on the appropriate price side
(2), tenkan shows the increase (3), kijun also shows the increase (4). Senkou span A (a) is
above senkou span B (b) and also stacks up to rise (blue arrow), i.e. possibly following the
price.

Fig. 120.

The signal is confirmed not only by a nice earnings, but also by the signal
1c,that is, the signal of three lines, which arelaid in such a order:

1. tenkan
2. kijun
3. senkou span A

Even if we jumped very high up in a very short time, we can confidently buy on the
basis of this signal, as usual, our signal for the output will be the intersection and closing of
the candle under the stick line:

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Fig. 121.
The situation repeats itself, closing the candle under the kijun line means not only
closing the "buy" operation, but it can also mean opening a sell operation. In this case, I
would not risk, we are still in a strong upward trend, and the sky cloud following the price
tells us that the decisive declines are still a long way off.

Fig. 122.

In the image above (Fig. 122.) we can see with what precision the price bounced
from the cloud (1), chikou is on the right side of the price (2), also tenkan line seems
determined to bounce off the line kijun and not cut, so go ahead so we buy, and here's
how the situation developed:

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Fig. 123.

As we see above, the situation has developed after our thought, the price crosses
the kijun but does not close under it, of course, even the candle formation indicates to us
that the main movement of the upward trend is over and we are waiting at least for some
correction, or change of trend, so we can safely exit the operation:

Fig. 124. Buy input at point a and output at point b.

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Again, we have a few days of rest because the price is in the cloud, only
leaving the cloud will be a signal for us to re-enter:

Fig. 125. Signal for buy input.

The Kijun line is not SL in itself, the price often reflects on this line followed by followed by the
trend. The signal to exit for me is to close the candle on the other side of the Kijun line, which in
some cases prevents too early exit from the operation:

Fig. 126. Reflection from the line kijun.

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In others, it takes us a huge profit closing on a small plus:

Fig. 127. Signal for buy input (a) and output from operation (b).

Well, we're going to keep going, even though I've escaped with a very nice profit.

Below we see how the price bounces off the cloud, crosses the tenkan and kijun line and we
can buy again:

Fig. 128. Buy input signal at point a.

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And again, if we have not taken candlestick formations seriously (and we should)
we close on a small minus:

Fig. 129. Entry at point a and output at point b.

The price again bounces off the cloud (Fig. 130.) and creates a strong signal to buy
that is a golden cross over the growth cloud (signal 1a cut the kijun line through the
tenkan line), this time I do not go into the operation gyż earlier price behavior allows me to
draw a resistance line, only if the price exceeds this line we will have a clear signal to buy
if not, we are waiting for the next signals:

Fig. 130. The price encounters resistance, only closing the candle above resistance will allow us to open
a buy position.

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As you can see below (Fig. 131.) the price could not break the resistance and fell
sharply down piercing all ichimoku lines, the first signal for sale (a) may be a confirmation
that we are no longer in correction and in a new downward trend:

Fig. 131. Sell input at point a.

Even if the price returned to the senkou span B line, it never closed on the opposite
side of the line, the reflection from the cloud is therefore the next confirmation of the "sell"
and the closure above the stick line will be our signal to exit the operation (b):

Fig. 132. Sell input at point a and output at point b.

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In the image below (Fig. 133.) we see that we have a few days off again and here comes a very
strong signal:
exit from the green cloud down, signal 2b. Chikou is on our side, tenkan line and kijun line
indicate drop:

Fig. 133. Sell input at point a.

As you can see below (Fig. 134.) this signal was very profitable, the price several times
perfectly bounced off the stick line, I close only when the first candle closes above this line.

Fig. 134. Sll input at point a and output at point b.

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The price briefly bounced up, creating even a weak "buy" signal, that is, the
intersection of the kijun line through the tenkan line from the bottom up, but did not reach
the outer line of the cloud, turned down again giving a signal for sale (a1):

Fig. 135. Sell input at point a1 and output at point b1.

In this case, even if we did not take into account the candlestick formations
and automatically closed over the kijun line (b1) we would still earn.

And as before, the price escapes to the cloud so that we can relax a little:

Fig. 136.

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Please note that the examples cited above are not taken out of context, this is a
series of eurjpy steam operations from December 2011 to today 09.06.2012. based on
how the pair behaved. As I wrote above practicing on data from the tester I lose a lot of
valuable information such as support and resistance or the possibility of interpreting
ichimoku lines at larger or smaller time intervals.

While I was analyzing historical data on the market, new signals appeared,
unfortunately I was not able to track every 4 hours of developments, so there are few
operations.

On the currency pair AUDUSD on TF 4H appeared a golden cross, which perfectly

cooperated with the change of the cloud, from the downward (green) to the upward (blue),
chikou is on the right side of the price or a beautiful signal to buy:

Fig. 137.

As you can see above, I was tempted to a quick long just after leaving the cloud,
and for good ness this operation I could leave open using as SL kijun line.

Returning to our entrance on the basis of the golden cross, let's see how the situation
developed:

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92 FxIchimoku

Fig. 138.

The price is closer to the recent highs, which are exactly at the round price, if we
manage to beat this resistance, the price should jump again:

Fig. 139.

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How do you see the price broke the resistance and jumped up and at the first wai
roll I close – why? We have a Friday 15 June today, I don't like to leave operations for the
weekend if I don't have to, and if it's a weekend where you're going to discuss Greece's
future in Europe the risk is too great, it's really hard to predict how the market will open on
Sunday night. The situation is therefore as follows:

Fig. 140.

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14.Summary after a month.

Of course, it is not my goal in this tutorial to show you what kind of trader I am, but
to show that using this strategy at large time intervals can earn. After a month of work (not
using money management techniques – which I sincerely advise against if it is not a demo
account) starting from 5000$ on 17.05.2012

I earned 52000$ by 19.06.2012, using only ichimoku technique, statement with details can
be found in the attachments to the eBook. Of course, as I wrote before I did not use money
management techniques, and someone can accuse me that in the demo account opening
positions with large flights it is easy to achieve such results, etc. etc. but even if I opened
positions ten times the number of flights, that is, instead of 1 lot it would be 0.10 lots it
would still earn more than 100% in a month.

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Now about errors:

Two operations on the USDJPY currency pair were opened on the basis of a signal on
weekly candles, which is definitely a big mistake. And if we consider that chikou has not
yet crossed the price line, if I close these operations at zero or a small loss I will have a lot
of money (which is also important in trading):

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96 FxIchimoku

Fig. 141.

As you can see below, the entrance was quite unfortunate, especially since closing the
operation on our classic SL or after cutting the Kijun line would mean a loss of 2000 pips!!!!
Of course, at a broker with three digits after a comma on a pair of usdjpy, but it's still too
much.

Fig. 142.

After closing these operations, I will certainly return to TF 4H and 1D, leaving monthly
and weekly candles only to set support and resistance.

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13.Ichimoku and other indicators.

Personally, I think that Ichimoku with the right interpretation of the candle formations is a
complete system that does not need additional indicators. Nevertheless, I met with traders who
added indicators to make this system "supplement".
The first was my teacher who, apart from IchiMoku, used the CCI indicator with the interval.
34. Commodity Channel Index, which is used to search for price points by setting levels of
purchase / sale on the market. In the assumptions of Sarmata If the value of the indicator was
over 80, he did not even buy if the signal for buying was clear and left "Buy" if he had an open
surgery. Reverse if the indicator below -80 did not sell even if he had signals or closed the
operation if he had an open "Sell" operation. Thanks to this, he could save themselves like this
unpleasant surprise:

Fig. 143.

As you can see the price "she jumped" from the cloud, Senkou is on our side so: we sell! Sarmat
in this case would wait with the opening of the position because the CCI indicates the sale and
how I see it would not make a mistake. I, in turn, think that if we determine the support and
resistance, the expected profit or expected loss, we can get a little bold without this indicator.
What's more, I think that often Sarmat came out early from the operation through this indicator.

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The price wandered a little, but still found itself where it should be:

Fig. 144.

I also met in some studies with an attempt to integrate IchiMoku with ADX indicator or Average
Directional Index, which was created to show us the strength of the trend, regardless of whether
it is an upward or downward trend. Considering from Ichimoku, it shows us the direction of the
trend, these two indicators as a couple can give us very good results even on smaller time
intervals, eg H1. ADX consists of Di + and Di- or Directional Indicator Positive and Directional
Negative Indicator.

There are two basic interpretations of this indicator: first when two lines intersect, if the line di-
splits di + from below, we can say that the downward trend begins and if the line di + releases
the line di- bottom up we can expect Growth trend begins.
The second interpretation is if the DI- or DI + line is above level 20, we are dealing with a strong
trend, while when it reaches level 40 and starts to fall, the strength of the trend ends. I will not
enter the details of the interpretation of this indicator because this is not a book ago dedicated,
but browsing historical data can be noticed from ADX gives good signals to leave the operation:

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 FxIchimoku 99

Fig. 145.

Arrow number 1 shows us the correct output from the short operation according to
the ADX indicator, arrow number two shows us where we should go according to ichimoku
strategy. As you can see, the ADX indicator has allowed us to save a lot of pips.

I also think Ichimoku is a great filter for operations on smaller TF. A friend of mine
traduje only on TF 5 min using medium, his strategy was on average, practically what he
earned in 5 – 6 operations lost in 1 operation. I tossed him Ichimoku I told him to enter only
and only with the trend. While we are in a downward trend it is supposed to ignore all the
"buy" signals generated by its strategy, although the number of operations has decreased,
but earnings have increased significantly.

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14.Subsequent entries. Subsequent

signals.
The first entry is EURJPY, the price bounced off the blue cloud (A), "jumped" the line kijun
and tenkan (B), then bounced off the line kijun sen (blue arrow), the chikou line is on our
side:

Fig. 146.
As we can see in the daily chart (Fig. 147.) the price has gone in our direction and our
account continues to rise:

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 FxIchimoku 10

Fig. 147

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The next pair is GBPJPY, a classic exit from the cloud, I open only one operation
because we come out of the green cloud, chikou is on our side, tenkan eminently upward:

Fig. 148.

The situation has not fully developed after our thought, but we can be calm,
because the cloud has worked well as a support:

Fig. 149.

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 FxIchimoku 10

So I open the next position because the direction is confirmed:

Fig. 150.

I leave the operation when on a one-day candle (Fig. 151.) the price touches with
incredible precision cloud, which this time is resistance:

Fig. 151.

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104 FxIchimoku

Another pair is EURAUD, in the first part of my course gave us a little burn, but I do
not offend the pair, if there is a signal then you have to earn and basta.
We are in a downward trend, the third candle from the end bounced off the
kijun, chikou is on our side so sell:

Fig. 152.

The situation develops as much as possible after our thought:

Fig. 153.

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 FxIchimoku 10

I close the items because there is a support line on the weekly chart:

Fig. 154.

Here's what support looks like on the weekly chart:

Fig. 155.

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106 FxIchimoku

And so in the end the price has been preserved while respecting the previously painted support:

Fig. 156.

The price comes to the cloud sideways, that is, we have a small correction, if the
price bounces off the cloud it will be an excellent signal for the sell input, if it enters the
cloud again we will have a few days off:

Fig. 157.

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 FxIchimoku 10

As you can see in the chart below (Fig. 158.) no candle closed in the cloud, the line
senkou span A acted as resistance, I also have another confirmation that the price will fall
further that is the cross of death and chikou crosses the price line down:

Fig. 158.

Are we on the support, punctures or not pierces? Pierced so I close the positions on a nice
plus:

Fig. 159.

Actually, the operation should not be closed, I should only move the SL, but on such
a solid signal I risked a lot of flights, and the long flat senkou Span B somewhat bothers
me, as I wrote earlier such a flat line senkou span B often acts as a magnet.

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15.Recent operations.
Well it's high time to end this brief description of Ichimoku's strategy, the last operation that
I will describe will be a eurusd steam operation, the price goes down from the growth
cloud, senkou span B once pierced acted like resistance, confirms our desire to fall, chikou
is on our side so we open the first sell operation:

Fig. 160.

In the chart below (Fig. 161.) I see how the operation moved down nicely, a little
"not playing" with the blue cloud, so I leave only one operation open waiting for the
situation to develop:

Fig. 161.

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 FxIchimoku 10

The price has returned to the cloud, but the senkou span B line is doing well as a drag:

Fig. 162.

On the chart below (Fig. 163.) I marked possible exits, but I am calm, if kijun sleep is
falling then the price should drop a little:

Fig. 163.

As usual, we need to "suffer" a little, but more and more signals are on my side,
senkou span B perfectly defended:

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110 FxIchimoku

Fig. 164.

The end result is very edifying:

Fig. 165.

Even if I have 5 operations open on the minus at this point, then the final result anyway is
very good:

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 FxIchimoku 11

Once again, I stress the importance of good money management, I allowed myself
to trade acrobatic for demonstration purposes, but as I wrote earlier, even if I opened all
operations ten times fewer lots, the result would still be very satisfactory.

16.Summary.
All the important elements of ichimoku strategy described above, I hope that this will
be the beginning of a long and profitable road in the forex market for you, of course I
invite you to my website www.b-trader.com where I will continue to present entries
on the basis of this strategy. Remember that in addition to a good strategy in the
work of the trader is very important money management and your psyche, only
creating a complete trader containing all these elements will guarantee you profits,
and the book you have just read with certainty is the first, very important step in this
direction.

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112 FxIchimoku

dictionary
Ask – The price at which a currency or other financial instrument is offered.

Bid – the price offered by the buyer of currencies or other financial instruments.
Broker – a company that organizes trading certain instruments, charging
commissions on concluded transactions. The broker does not occupy a position in the
market.

Demo – a demo account, usually a free trading account on the broker's trading platform
that allows you to trade only on virtual funds. Long position – buying financial
instruments

High – the maximum price level of the instrument reached in a given period of time.

Short position – sale of financial instruments.

Long – a long position, a transaction consisting in the purchase of the base currency.
Lot – the standard transaction size. One lot of 100,000 units of the base currency.
Low – the minimum level reached by the price over a given period of time.

Margin – cash accumulated in an investor's account required by the broker as

collateral for trades. Margin call - Call for replenishment.

Pip - The minimum value by which the currency price may change for most
currencies is the fourth decimal place and is 1/100 percent

Rollover - extension of the maturity of the contract for another two working
days combined with an update of its value calculated on the basis of
differences in the interest rate on currencies from the pair (according to swap
points)

Short sale - Sale of a certain amount of currencies, shares, goods, owned by the
seller. Short selling is used by investors expecting prices to fall.
Spread - (Price spreads) - the difference between bid and ask prices
Stop-Loss order (SL) - (Stop loss order) – an order aimed at closing a loss-making
position at a certain price.

Take profit (TP) – the intended price level set by the investor, after which the open
(profitable) position is automatically closed. Realization of profit. Time Frame (TF) –
The time interval for displaying the chart.
Trend – the direction in which the price of an instrument (upward, downward,
horizontal) is following.

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