I am using ICHIMOKU for trading in timeframes of 350 ticks, 1 min, 5 min mainly for EURUSD, ES. For analyzing and long term trades you can use time - as usual - from 15 min and above up to daily charts for all instruments.
Since Ichimoku follows its own philosophy it is paramount to understand what this indicator is telling and how to use it for own trading.
Below is the formulas of Ichimoku Kinko Hyo without deviating from the original tenet by Goichi Hosoda unveiled in 1936.
Tenkan-Sen - (Highest high over the past 9 periods counting from the current candle + lowest low over the past 9 peirods counting from the current candle) / 2.
Kijun-Sen - (Highest high over the past 26 periods counting from the current candle + lowest low over the past 26 peirods counting from the current candle) / 2.
Chikou Span - The current closing price plotted 26 periods behind counting from the current candle.
Senkou Span A - (Tenkan-Sen + Kijun-Sen) / 2, plotted 26 periods ahead counting from the current candle.
Senkou Span B - (Highest high + lowest low) / 2, calculated over the past 52 periods counting from the current candle. Plot 26 periods ahead counting from the current candle.
(Please note that as I exaggerated, 'counting from the current candle' is the trick when calculating/displaying each value, which has been overlooked (I don't know why) by most of the trading literature out of Japan.)
May I ask BM forum members if the ichimoku.cs modified by tarantino can properly plot the 5 lines just by altering the parameters into 8, 25, 51 respectively? Otherwise, would it need any tweaking of the existing code to make it happen?
Any valuable comments are highly appreciated.
Last edited by Cazique; February 21st, 2011 at 08:20 AM.
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The standard version of the Ichimoku uses High and Low values for all calculations except the Chikou Span. I don't know whether this is intentional or not, but your version of the indicator uses Close (the default input for MAX and MIN) for everything. Thus all plots except the Chikou Span are slightly off.
Here's a version using the H and L values.
Last edited by futuretrader; June 26th, 2011 at 06:37 AM.
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I'd like to see you guys start a Ichimoku thread, not specific to any one platform - just a thread in Traders Hideout discussing Ichimoku trading techniques.
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
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Favorite Futures: Still not sure what is my favourite instrument.
Posts: 155 since Jul 2009
Thanks: 464 given,
I have been purely an Ichimoku Trader since about a year now. Ever since I have used Ichimoku, I have seen an improvement in my trading and understanding the market.
@ Mike: I have been wanting to start a thread on Ichimoku and share my path with other Ichimoku followers. In fact I was very tempted to start a thread during the IPad contest ...... BUT .... I did not start it only for the reason that I did not want the IPad to be the reason for my thread. I wanted to do it for sharing my experience with fellow traders in futures.io (formerly BMT) as I personally have gained a lot from here.
I will take the initiative of starting this thread and request every one to be a participant in this.
Be like a JAGUAR. Crouching, perfectly still, waiting for the set up to come to you, then pouncing without hesitation or thought. You only need one to feed the family
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The IPad contest is just a trigger, as you will start the thread, and I will look forward it, you will discover that it helps other members, but most of, it will help yourself and that is much more worthy than an electronic device.
The following user says Thank You to redratsal for this post:
I encourage you to start the Ichimoku thread and promise my regular contributions. I am using Ichimoku for my currency trades for more than three years and will gladly share my systems. I am using Updata's ProTrader for my Ichimoku analysis. David Linton (Updata CEO) wrote a good book on Ichimoku, I believe it is available on Amazon in case someone is interested.
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