Mastering Ichimoku Clouds for Market Analysis

Mastering Ichimoku Clouds for Market Analysis

by Sherif Saad
Epub (Kobo), Epub (Adobe)
Publication Date: 23/06/2024

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Chapter 1: Introduction to Technical Analysis


Fundamental Assumptions in Technical Analysis


This principle suggests that all available information, including news, earnings reports, and other data, is already reflected in the price of a security.

According to this assumption, prices tend to move in observable trends, either upward, downward, or sideways.

This assumption is based on the idea that human behavior is consistent over time. As a result, historical price patterns tend to repeat, making it possible to predict future movements based on the past.


Chapter 2: Ichimoku Clouds


Origins of Ichimoku Clouds

Early Development

Components of the Ichimoku System

History and Evolution

Modern Usage


Chapter 3: Fundamental Concepts of Ichimoku Clouds


Components of the Ichimoku Cloud System


The Tenkan-sen is calculated by averaging the highest high and the lowest low over the past nine periods. It indicates short-term price momentum.

The Kijun-sen is calculated by averaging the highest high and the lowest low over the past 26 periods. It serves as an indicator of medium-term momentum and potential support/resistance levels.

This line is calculated by averaging the Tenkan-sen and Kijun-sen, plotted 26 periods ahead. It forms one boundary of the Kumo.

Calculated by averaging the highest high and lowest low over the past 52 periods and plotted 26 periods ahead, it forms the other boundary of the Kumo.

This is the current closing price plotted 26 periods back. It helps confirm trends when compared to past prices.

The area between Senkou Span A and B, representing support and resistance levels. The Kumo's thickness indicates market volatility.


Comprehensive Analysis of Ichimoku Clouds


Chapter 4: Setting Up Ichimoku Clouds


Chart Setup and Timeframe Selection Setting up Ichimoku Clouds involves selecting appropriate chart timeframes based on trading style (e.g., daily charts for long-term analysis, hourly charts for short-term trading) and ensuring all Ichimoku components are correctly plotted.


Chapter 5: Recap of the Ichimoku Clouds Principles


A concise review of the key principles and components of the Ichimoku system, emphasizing their interrelated functions and collective utility in market analysis.


Chapter 6: Combining Ichimoku with Other Indicators


Suggested Indicators to Combine with Ichimoku Clouds


Relative Strength Index (RSI): RSI helps confirm trend strength and identify overbought/oversold conditions.

Moving Average Convergence Divergence (MACD): MACD is used to confirm trend direction.

Stochastic Momentum Index (SMI): SMI refines momentum indicators to spot entry and exit points.

Bollinger Bands: Bollinger Bands help identify breakout points and gauge volatility.


Chapter 7: Advanced Strategies with Ichimoku Clouds


Multiple Timeframe Analysis

Trend Following Strategies

Reversal Strategies


Chapter 8: Common Mistakes and How to Avoid Them

Chapter 9: Practical Tips for TradersChapter 10: Conclusion


Key Points Summarized: Summarizes the importance of mastering Ichimoku Clouds for effective market analysis and the benefits of a comprehensive trading plan and risk management.

ISBN:
1230008045720
1230008045720
Category:
Commodities
Format:
Epub (Kobo), Epub (Adobe)
Publication Date:
23-06-2024
Language:
English
Publisher:
Sherif Saad

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