{"id":7212,"date":"2013-08-06T08:18:38","date_gmt":"2013-08-06T15:18:38","guid":{"rendered":"http:\/\/www.tradingheroes.com\/?p=7212"},"modified":"2024-03-29T21:45:36","modified_gmt":"2024-03-30T04:45:36","slug":"the-beginners-guide-to-ichimoku-trading","status":"publish","type":"post","link":"https:\/\/www.tradingheroes.com\/the-beginners-guide-to-ichimoku-trading\/","title":{"rendered":"Beginner’s Guide to Ichimoku Trading"},"content":{"rendered":"

I have never had any interest in Ichimoku Trading in the past.\u00a0 I don't really have much interest in trading it now.\u00a0 However, I am curious as to what it is all about.\u00a0 Apparently, I'm not the only one, as I got a comment from Adam on Facebook asking about it<\/a>.<\/p>\n

\"ichimoku-clouds\"<\/a><\/p>\n

If I don't want to trade it, then you might be wondering why I'm going through so much trouble to research the topic. Well, I strongly feel that knowing more trading strategies will make me a better trader because I may be able to use a concept that I learn to improve my trading.<\/p>\n

Sometimes, it just takes one good idea to turn a system from untradeable, into a solid system.\u00a0 A good case in point is the combination of the pivot system, that I learned a long time ago, and the Trade Up method.<\/p>\n

So in this post, I will show you what I learned about Ichimoku Trading and where you can get more information if you want to learn more. Nothing in this post is revolutionary, but hopefully I have explained it a way that is easier to understand than on other sites.<\/p>\n

I probably still won't be interested in trading Ichimoku after this, but I'll let you know at the end.\u00a0 However, at the end of this post, both of us will<\/em> know much more about trading this odd Japanese indicator and hopefully be able to take away some knowledge that we can use to improve our trading.<\/p>\n

History<\/h2>\n

Let's take it back…way back.\u00a0 The full name of the indicator is Ichimoku Kinko Hyo<\/strong> and was invented in the 1930's by a Japanese newspaper reporter named Goichi Hosada.\u00a0 He wanted to create the ultimate trading indicator (sound familiar?) and supposedly took 30 years to develop Ichimoku before publishing it.<\/p>\n

I also found that not many US traders knew about the trading strategy until the 1990's.\u00a0 Since then there has been quite a bit of interest in the method, but there still do not to be too many people outside of Asia who use it as their main trading method.\u00a0 At least from what I could find.<\/p>\n

In my research, I was also not able to find out if Goichi was actually able to use it to profit, but ever since he published the book, it has been a popular trading method in Asian trading rooms.\u00a0 Because of this, the Yen pairs supposedly respect Ichimoku levels and watching this indicator might be a good way to gauge where these pairs are going.<\/p>\n

The components of the name are as follows:<\/p>\n

    \n
  • Ichimoku:<\/strong> Once glance<\/li>\n
  • Kinko:<\/strong> Balance<\/li>\n
  • Hyo:<\/strong> Chart<\/li>\n<\/ul>\n

    So Ichimoku Kinko Hyo was designed to be a chart in which you can see the balance of the market, at a glance.\u00a0 It is a trend following indicator, with a built-in support a resistance measurement.\u00a0 That's great in theory, but what is involved in all this Ichimoku-ness?\u00a0 Here are the components that actually go into it…you can check out the video or read the text below.<\/p>\n