Ichimoko Kinko Hyo- A Unique Trend Trading Indicator
Ichimoko Kinko Hyo is a unique trend trading charting system. The name may sound intimidating to those unfamiliar with Japanese and a quick glance at the formula makes it appear far more complex than it really is. Trading trend is what makes a fortune. This indicator is a very versatile indicator that can help you trade trends in both the forex as well as the stock market. It tells you almost everything about the trend in a visual manner.
Ichimoko Kinko Hyo Indicator can help you filter out high probability trade setups from low probability trade setups. It uses multiple data points to give you a complete visual picture of where the market is heading.
Ichimoko Kinko Hyo Indicator will give you a much better understanding of how the market truly functions with support and resistance as not just points or lines on the charts but rather as areas that expand and contract depending on the market dynamics.
You can use the Ichimoko Kinko Hyo Indicator for measuring momentum, support and resistance, identify the direction of the trend as well as know when to enter and exit the trend.
Ichimoko Kinko Hyo Indicator core is the Ichimoko Cloud that consists of five plots;
1. Tenkan-sen also known as the Conversion Line
2. Kijun-sen which can also be called the Baseline
3. Leading Span A. This is also known as the Senkou Span A in Japanese.
4. Leading Span B also known as the Senkou Span B
5. Chikou Span which is the Lagging Span.
The most important plots are the Leading Span A and the Leading Span B. When prices move above the baseline or the Conversion Line moves above the baseline, it is taken as a bullish signal. Similarly when the prices or the conversion line moves below the baseline, it is a bearish signal. This indicator works best on the daily and weekly charts. You can use this indicator on your MT4 Platform.
Article Source: FxTradingStock.com
About the Author
Mr. Ahmad Hassam has done Masters from Harvard University. Get these Forex Scalping Cheatsheets plus the 10X Scalping System FREE. Download this award winning Forex Trading System that made 1,306.50% in one month FREE and watch the banned system video.
by: Ahmad Hassam
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Word Count: 341
Date: Fri, 12 Nov 2010
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