GFI - thanks for the input; can you expand on "daily Kumo" - are you referring to cloud patterns? These cloud patterns are calculated via moving averages (between 9 - 26 - 52 days from what I've seen before???). Do you have any reference material on the "daily Kumo"?
Do you use gap trading at the heart of your system?
Kumo or Cloud is part of the Ichimoku system and as you state this is what I am integrating for my core rules.
Meaning passing a "cloud" in a plane is about the same here in trading to see some turbulence aka "Blind Flight".
You will find these daily charts with Kumo if you search within this thread for "big picture" or "bigger picture".
Of course there is a lot of material about Ichimoku and clouds - depends on what you are looking for - the
technical aspect or how to trade it. There is a book from Karin Roller (which I have not read though) and she
is giving out a interesting Dax forecast every second day: DAX Tageschart Ichimoku-Analyse | vtad in german.
See this technical page and find a video describing details: Investor/RT - Ichimoku Kinko Hyo
About the gaps you are asking - these are important points to decide "when" to start a trade. As I am not trading
the gaps itself in the system here they still influence the starting points as well as the direction. My entry is never
before 09:30. So the gap itself is not part of the trade.
You can see that I am not looking for a fixed point goal but a good result with high probability and stops outside noise.
If you are looking for guys trading the gap you will find for threads here too.
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There are many definitions for gaps in total.
MY definition is based on this:
- only looking at cash trading hours
- measuring the Hi/Lo of the previous day
If price is within the previous day range I see NO gap even
if opening price is gapping to the close of yesterday.
If price is outside the previous day range there is a gap.
Then there are occurences within the first 30 minutes of the opening
where I look if the price has come back to previous day's range or not.
A second part is to see if the opening price is outside of 100% of previous
All these tiny parts are important to see a highly probable direction for the
next 2 to 5 hours - as the "runner" should not be taken out too early.
Taking all things together to a "system" - we are only looking for patterns
under certain conditions.
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Interesting chart today. Lots of strength on both FTSE & DAX first part of the morning session especially after a big fall on the Japanese market (3.6% and 100 point drop after the bell). 10:45 am CET the drop begins., with a low of circa 9070. The direction then changes with a high at circa 4:00 pm CET 9166, then the market weakens as the DOW runs out of puff. After the bell the strength of the DOW pulls up the DAX.
Interesting point the close of Monday 3rd Feb 9186 was not closed missing by 20 points!
Well done to those that caught the long bus at 9070!