iCharts Discussions

[rameshraja]

There are innumerable strategies that we can make use for trading. Amongst all, I personally prefer to Swing trade by Ichimoku trading strategy.

I always look at price and its action. I simplified this system to my comfortable tolerance level in trading with following rules.

1. I trade only with clouds of Ichimoku , and don’t look at any other indicators of the System

2. My timeframe setting is 60 Minutes

3. I will Buy only when Price Bar closes above Cloud and low of the price bar should be above cloud.

4. Next important condition being, the high of that bar should be takenout for Technical Validation.

5. Trail the trade till the Price Bar closes below the cloud and that bar low is takenout for technical validation to ensure that previous trend has changed.

6. I will book partial profit even when the price test the cloud.

7. Early warning of trend change, when price test the cloud after substantial gap between Cloud and Price.

For Swing Short: Its vice versa.

1. Short when price closes below the Cloud and high of the bar should be lower than cloud. Next condition, subsequent bars should takeout the low of that Price bar for technical validation.

2. Trail the trade till the Price bar closes above cloud and completes validation by takingout its high. Then Exit the short trade completely.

3. Early warning of trend change, when price test the cloud after substantial gap between Cloud and Price.

If your want to learn more about Ichimoku Trading system, read the book title given below:

Trading with Ichimoku Clouds ..

The Essential Guide to Ichimoku Kinko Hyo by Manesh Patel, CTA

[svkum]

IS THIS ICHIMOKU CLOUD SYSTEM AVAILABLE IN PLATINUM CHARTS?

[sonila]

Is this chart avlbl in ichart ?

[kamal.icharts]

The IChimoku indicator is available in Platinum.

Regards

Kamal

[mayurnsk]

Rameshraja Sir Hello & Goodmorning !!

Nice system!! Yet another simple system.

And now we have that Ichimoku Indicator here in icharts in platinum... hence it can be used.... I like larger timeframes hence it suits me



Regards
mayurnsk

[rameshraja]

Mr Mayur

GM. higher the time frame it works efficiently as the system is based on Moving Average.

Best wishes

[SAKLECHA]

DEAR KAMALJI,

IT IS ASKING FOR USERID AND PASSWORD.........I AM INTRADAY CHART PREMIUM SUBSCRIBER, CAN I LOGIN USING THE SAME ID.

THANKS

[kamal.icharts]

Dear Member,

Please email to support@icharts.in and they will provide you the username and password to access the Platinum charts.

Regards

Kamal

[traderindian]

Hello Ramesh sir, nice strategy on Ichimoku kumo clouds..A few months back i thought to trade based on ichimoku clouds only..(cloud to cloud) but i had some doubts and wanted to clear it from someone who is actually trading on this.. Thanks for the initiative..Can you please answer the following queries:

a) is there any way to avoid whipsaws (price frequently going above and below cloud) or minimize the losses during sideways market in this strategy or we just follow the system signal to signal as nicely explained by you?

b) how do we tackle gap up or gap downs in this strategy. for ex. if during a short trade , market gaps up above the cloud or vice-versa ?

c) how do we tackle the situations where initial stoploss is too large i.e.diff between price and cloud is large at the time of breakout

d) are you trading on this strategy regularly and since how long ?

e) do you trade this strategy only on indices (nifty and bank nifty) or stocks also

Thanks in advance. Will really appreciate your comments on above queries.

[rameshraja]

Mcdowell is trending down

[vishyvaranasi]

[rameshraja]

Hello vishy

Formulas for ichimoku

Tenkan Line: (highest high + lowest low)/2 calculated over last 9 periods.

Kijun Line: (highest high + lowest low)/2 calculated over last 26 periods.

Chikou Span: (most current closing price plotted 26 time periods back.

Senkou Span A: (Tenkan line + Kijun Line)/2 plotted 26 time periods ahead

Senkou Span B: (highest high + lowest low)/2 calculated over past 52 time periods, sent 26 periods ahead.

Therefore, obviously you need large datas for indicator to be used.. Atleast a minimum of 150 to 200 Price bars to get to know about the trend.

[rameshraja]

Hello Trader Indian

Sorry for late replying to your querry.

To avoid whipsaws or to minimize the losses in sideways market, use Higher Time Frame like 60M / Daily and weekly.

Try using the rules which I have mentioned in the thread, as these were fine tuned to have high probable trades.

Initial Stops on breakout will tend to be large and if my conditions for takingup trade is fulfilled, and if you are averse to taking big risk, then wait for price to come closer to cloud to initiate trade.

I am using this method for more than couple of years and I don’t use this as standalone methodology to initiate swing trade, as I rely more on my proprietory trading system along with Gann to have self fulfilling prophecy in search of edge for trading.

As a matter of fact, I don’t use any single methodology for my Day / Swing trading and use combination of tools to ensure that I am not at the wrongside of market.. despite that I loose heavily at times when I have loose Stops in place.

Trade Well and follow the Trend !!

Best Wishes

[vinay28]

.. despite that I loose heavily at times when I have loose Stops in place.

Great Rameshraja! How many experts have the courage and the humility to admit this? Salute! Only this quality separates a few from the rest.

[som09]

hello ramesh raja sir,
will you clarify tht how to apply this indicator in platinum with parameter
please.

regards,
sachin