Trading with Ichimoku Clouds: The Essential Guide to Ichimoku Kinko Hyo Technical Analysis / Edition 1

by Manesh Patel

Overview

The essential guide to today's hottest technical indicator-the Ichimoku Kinko Hyo cloud chart

Ichimoku Kinko Hyo is a technical system that illustrates support and resistance values in a simplified form and is considered an extension of the very popular candlestick charting system. In fact, the system was built on the idea that at "one glance" you should be able to determine whether an instrument is in equilibrium (consolidation) or out of equilibrium (trending).

Written in a straightforward and accessible style, Trading with Ichimoku Clouds offers a solid foundation in this discipline as well as its technical strategies. It shows you how to create and implement a trading plan based on this approach that can easily be tailored to your trading style.

• First available U.S. publication on this hot trading trend
• Reveals how Ichimoku Clouds work in both bullish and bearish markets
• Highlights how these strategies can easily be adopted for stocks, futures, bonds, and other vehicles
• Works with all timeframes and all tradable instruments

Filled with in-depth insights and expert advice, Trading with Ichimoku Clouds will help you implement a proven strategy designed to capture trends that maximize profits and minimize losses. Furthermore, the user will be taken step by step through the entire decision-making process of trading an instrument for two years (back test).

Product Details

ISBN-13:	9780470609934
Publisher:	Wiley
Publication date:	06/28/2010
Series:	Wiley Trading , #473
Pages:	240
Product dimensions:	6.10(w) x 9.10(h) x 1.00(d)

About the Author

MANESH PATEL, CTA, is the President of EII Capital Group, a financial company that offers a variety of services, including money management, consulting, and trading. He is a technical trader whose technical foundation is built around a Japanese trend trading system called Ichimoku Kinko Hyo. With Ichimoku Kinko Hyo, Patel trades the following instruments: currencies, futures, options, stocks, and commodities. He is actively involved in Ichimoku trading and runs www.ichimoku.net and www.kumotrader.com, which has 125,000 subscribers and is ranked 260 among active Forex Web sites. Patel is a member of the National Futures Association (NFA) and received his master's in engineering from Georgia Institute of Technology.

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Table of Contents

Introduction ix

Background ix

Components of a Trading System xv

Chapter 1 Ichimoku Components 1

Tenkan Sen 4

Kijun Sen 10

Chikou Span 19

Kumo Cloud Components 25

Senkou Span A 27

Senkou Span B 28

Kumo Cloud 30

Chapter 2 Ichimoku Trading Plan 41

Components 41

Strategy Description 42

Chapter 3 Ichimoku Backtesting 45

Backtesting 45

EURUSD—A Two-Year Backtest 46

Summary—Two Years of Backtesting 134

Chapter 4 Post-Analysis 137

Examining the Backtest Results 137

Optimize Trading Plan 144

Chapter 5 Ichimoku Strategies 149

Ideal Ichimoku Strategy 150

Chapter 6 Ichimoku Time Elements 161

Ichimoku Time Elements 161

Chapter 7 Applied Trader Psychology/ Doug Laughlin 171

Is It as Easy as Just Being Taught a New System? 172

The Problem We Have with Getting in Our Own Way 172

Is There a Conspiracy Against the Small Trader? 173

Traders Myth—Smart People Make the Best Traders 174

Losing Trades Are Acceptable 175

A Successful System Will Fortify Your Convictions 176

Self-Sabotage and How It Applies to Your Trading 178

In Summary—Trader Psychology Overall 179

Chapter 8 Day Trading with Ichimoku 181

Consequences of Trading without a Trading Plan 184

Trading Plan 185

Backtesting 186

Conclusion 192

Chapter 9 Conclusion 193

Ichimoku Analysis Sheet 195

Bibliography 199

About the Author 201

Index 203