Source
r/Forex•
tyronwind

Problems with Ichimoku

Hey, guys.

I've been playing around with Ichimoku Kinko Hyo in a demo account and it has been quite the headache to use it in intraday timeframes (Hourly for signals, 4 hours for trend confirmation and identifying support & resistance). My money management has been keeping damages to the account balance to a minimum, but results so far are lacking. I'm using the standard values for the indicator (9/26/52) taking trades as the Chikou Span breaks the cloud, with the Kijun as a trailing stop (future cloud showing favourable scenario). I do confess I'm having a hard time understanding the applications of other concepts that are supposed to be used in conjunction such as "wave theory".

Any tips? Book suggestions are welcome as well.

Posted Jan 16, 2019, 3:43 AM UTC

117
Harry-PostreTechnical Trader•

Ichimoku was designed to be used on the daily/monthly/weekly time frame, not smaller.

4
tyronwindOP•

I see. Any better suggestions? Intraday I only saw decent results from price action, which is more challenging to automate.

1
Harry-PostreTechnical Trader•

Hi! i dont like price action, anyways u can find AE that print on the chart the canddles patterns, its not automated but u can coded from there.

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tyronwindOP•

well, that's a first! Never seen any trader that rejects Price Action. I used some candle patterns in the past (hammer, engulfing and doji), but never used it alone. I might automate it and backtest them to see the results. Thanks for the suggestion.

1
kimjongun772•

You can use it using tow timeframe 2 minutes and 10 minutes to do daytrade. There is a Very good training to use ichimoku but it's in portuguese language it's call "ichimoku traders" the teacher is Eduardo Matesura one of the best trades of price action in Brazil.

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tyronwindOP•

By the way, by "better" I mean better than Ichimoku for Intraday trading.

1
quasireality•

Seems you have the basic understanding, however Chaos Trader strips down the component parts and builds up, from the very bottom. Giving awesome trade setup examples etc

Crazy long video (1 hour +) but I found it very helpful.

Nowadays he uses the CCI oscillator, which he uses in conjunction to the Kumo cloud breakout

https://youtu.be/p-eeW4SzWCA

Hope it helps 😊

3
tyronwindOP•

I've seen a few of his videos, but I'll take a closer look.

I agree I still haven't fully understood all aspects of Ichimoku, so any info is very welcome.

Thank you very for the help any many profits to you, friend.

2
ginrei-kojaku•

Just started learning the Ichimoku indicator, even if I don’t implement it I find it interesting at first glance. Thanks for the video, been looking for one.

1
RabbitZoombie•

When this line does the 'wiggle wiggle', you buy. When that line does the 'sweepidity swoop', you sell. 😂😂😂In ask seriousness, run, don't walk, away from indicators.

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tyronwindOP•

hahahah for manual operations, I 100% agree. But for algotrading, indicators give a wide array of possibilities for further analysis (hence my interest).

I appreciate the input anyways. Cheers!

1
extamzy•

I personally have little experience with ichi. From what i gather ichi is amazing when a Trend is in progress but suffers greatly when in a range. I would recommend identifying the trend on the current time frame. It's good to go to higher time frames to see the over all trend, This should help with your expectations of how long to ride the current trend. However The higher TF trends doesn't represent the CURRENT trend on the time frame you are on. So on 4h/daily it's clearly an uptrend. On the 1h it's Ranging,You would be best with ichi wait for the range to break into a trend. Even if the range breaks into a downtrend it would still be fine to trade with the ichi just keep in mind the overall trend is up so i would keep my tp REASONABLE and not expect 100+ pip move. Ichi is suppose to let one capture up to 80% of the trade or something like that. If it works it works, if not move on and keep moving on until something clicks with you.

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luaudesignLive Trader•

From what i gather ichi is amazing when a Trend is in progress but suffers greatly when in a range.

Which means it's amazing about 30% of the time.

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tyronwindOP•

Well, that reduces my expectations hahahahah

Thanks for the help, from both of you.

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extamzy•

30% of the time across many pairs should give plenty of trades no?

2
tyronwindOP•

It depends what he meant. If he means you won't get the signals 70% of times then I agree, 30% is great. If it means you have 30% success rate then I hope you're operating on a 3:1 risk-reward ratio or stronger =P

1