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My takeaways from the book "Trading with Ichimoku" by Karen Peloille: https://twitter.com/finallynitin/status/1307000135617044481
Contrary to other trading techniques, Ichimoku will make you enter the market later but with a greater likelihood of success.
The Tenkan primarily indicates the strength of the short-term trend through the degree of its slope.
When prices are close to the final target and break the Tenkan, this indicates that the market’s move is over and that it is wise to close the trade.
When prices are close to the final target and break the Tenkan, this indicates that the market’s move is over and that it is wise to close the trade.
Traders should also take great value of price behaviour when the market comes into contact with the Kijun. Prices will either bounce off the Kijun or they will break it, thereby making two different signals traders should watch for.
The interaction between the Tenkan and the Kijun is of little importance to the overall analysis markets, crossovers of these two lines not being very significant.
The price must rise above both Tenkan & Kijun in order for a bullish movement to really take shape in the market.
The price must rise above both Tenkan & Kijun in order for a bullish movement to really take shape in the market.
Senkou Span B (SSB) often acts as a very strong support or resistance.
The convergence of Kijun in line with SSB on the same level always represents strong support/resistance.
The convergence of Kijun in line with SSB on the same level always represents strong support/resistance.
Trend lines are the only additional worth considering with Ichimoku because they’re the only tool that provides useful information to the indicator.
Many breakouts would be invalidated by the Lagging Span unable to cross the same trend line later on. This is another filter.
Many breakouts would be invalidated by the Lagging Span unable to cross the same trend line later on. This is another filter.
If you want to keep with your current charting method, consider also looking at the Ichimoku chart of the same market to act as a verification of the key levels and strategy.
The last section is a wonderful read on trading psychology. Here's the best part:
Overall, the book is quite good. However, the author only trades currency pairs. I was also hoping for a better coverage on trend-following, but most examples were based on trend-reversal. The book is also relatively costly as compared to its peers.
Thread dedicated to @sanstocktrader, who first introduced me to Ichimoku.
