ICHIMOKU indicators for day trading ES MINI | Traders Hideout


futures.io - futures trading strategies, market news, trading charts and platforms


Traders Hideout


Discuss day trading practices and futures trading strategies on this forum for all markets. This forum is also for discussing and reviews for brokers, data feeds, and commercial or third party add-ons




 

ICHIMOKU indicators for day trading ES MINI

  #17 (permalink)

Market Wizard
Berlin, Europe
 
Trading Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
 
Fat Tails's Avatar
 
Posts: 9,798 since Mar 2010
Thanks: 4,236 given, 26,403 received

Tenkan-sen and Kijun-sen (blue and red line) are midlines of a Donchian channel and are used in a similar way as moving averages. The cloud is built from displaced Donchian midlines and represents the higher timeframe.

I am looking at the following filters:

(1) Price vs. Tenkan (price above or below a 9-period Donchian midline)
(2) Price vs. Kijun (price above or below a 26-period Donchian midline)
(3) Tenkan vs. Kijun (this is similar to a moving average cross)
(4) Price vs. Kumo (price sitting above, below or inside the cloud)
(5) Price vs. Kumo midline (price above or below the midline of the cloud)
(6) Senkou A vs. Senkou B (this information is not read for the current bar, but 26 bars ahead)
(7) Chikou span vs. price (this information is not read for the current bar, but 26 bars behind)
(8) Chikou span vs. Kumo ((this information is not read for the current bar, but 26 bars behind)

This makes up for 8 different trend filters, which may be combined to calculate a composite trend. It is difficult to incorporate visual elements - like the shape of the cloud - into this system.

I am not using all of the filters above, as they are redundant, but prefer to focus on 3 or four of them. The chart below shows signals based on

(1) Price vs. Kijun
(4) Price vs. Kumo
(6) Senkou cross

When all of the three trend filters are long, paintbars are green. When all of them are short, paint bars are red. When they are in contradiction, paint bars are gray. The first green or red paint bar generates an entry signal in the direction of the new trend. Double arrows denote a new trend after a reversal, single arrows show trend continuation after a sideways move. The screenshot shows a 60-min chart of 6E 09-18.

The Ichimoku system is a trend following system and will generate false signals in sideways markets. However, it works very well in trending markets.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


Last edited by Fat Tails; July 24th, 2018 at 03:04 AM.
Reply With Quote
The following 6 users say Thank You to Fat Tails for this post: