Trading with Ichimoku clouds: the essential guide to Ichimoku Kinko Hyo technical analysis

237 Pages·2010·10.21 MB·English

by  Patel, Manesh

Tradinwgi th
Ichimoku
Clouds
,
Foundedi n1 807J,o hnW iley& SOiliSs t heo ldesitn dependepnutb lish­
ingc ompanyi nU leU niteSdt ateWsi.U lo fficesi nN orthA mericaE,u rope,
AustralainadA siaW,i ley gilso balcloym mittetdod evelopianngdm arket­
ingp rinatn de lectronpirco ductasn d servifcoeros u rc ustomerpsr'o fes­
sionaaln dp ersonkanlo wledgaen du nderstanding.
TheW ileTyr adnigs eriefse aturbeoso ksb ytr adersw ho haves urvived
them arket'esv erc hangintge mperamenatn dh avep rospered-sobmye
reinventing systems,b y goetthteirnbsga ck tboa sicWsh.e thear novice
tradeprr,o fessioonras lo mewherien -betwetheens, eb ooksw ilplr ovide
thea dvicaen ds trategnieeesd etdo prostpoedra ayn dw eliln ttoh ef uture.
Fora l isotfava ilabltei tlveiss,io tu rW eb sitaet w ww.WileyiFnance.com.
n
Tradinwgi th
Ichimoku
Clouds
TheE ssentiGauli det oI chimoku
KinkoH yo Technical Analysis
ltlANESH PA'I'EL
ffi
WILEY
John WileSyo nsI,n c.
&
1II
2010
Copyright by CapitianieT.h er ighotfM anesPha telt ob ei dentifieads t hea uthor
<0 E,!.!.
1988.
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PublisbhycJ do hnW ileyS onsI,n cH.o,b okenN,e wJ crsey.
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ore xtendbeyds alerse pre!:>entaotrwi rviet!:>t !:>eanl em!:>a teriaTbh.ea dvicaen ds trategies
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LibraorfyC olIgCraetsas/ ogillg-iDfcll-tPau;b Uccltioll
PateMla,n esh.
Tradiwnigt Ihc himockluo u:d tshee ssentgiuaildt eo I chimoKkiun kHoy ot echnical
analysMiasn eshP atel.
I
p.c m.- (Wiletyr adisnegr ies)
Includbeisb liograprheifcearle nacnedsi ndex.
978-4M70-OO99J-4
ISBN (cloth)
J.h westment.analy2s.Sit so.c ks-Prices-dCihaagrrtasme,st ,c .L Title.
HG4529.2P03180
332.fl3'2042-dc22
2009052168
Printientd h eU niteSdt atoefsA merica.
10 9 8 6 5 4 3 2
7
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Ia md e'idcagtl 'hiinbso otkom y la.leJalher
Ra,manll.a Pal-dafa,lher wehnoc ouramgeet do
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bet hbee sItc an anfdol ltomowy d ta'e.ms.
If weln'eo tofl'h 'imI,' wounlodbt e w hoI a m today.
'it
A portioonf tphreo ceedfrso m thibso okw ilble g ivetno v arioucsh arities
arounthde worldi nh isn ame.
v
Vl
Contents
Introduction Ix
Background IX
Componentosf a TradinSgy stem xv
1
�IIAI·'I'I�K. IchlmokuC omponents
Tenkan Sen 4
KijuSne n
10
ChikouS pan 19
Kumo CloudC omponents 25
SenkouS panA 27
SenkouS panB 28
Kumo Cloud
30
t;IIAI·'2:r I�IKc hlmokuT radingP lan 41
Components 41
StrategDye scription 42
45
t::IIAI·'I'.I�cKh lmoku8 ackl,esting
3
Backtesting 45
EURUSD-AT wo-YeaBra cklest 46
Summary-TwoY earso fB acktesting
134
137
Examinintgh eB acklesRte sults 137
OptimizTer adinPgl an
144
vII
"ill
CONTENTS
149
IdeallchimokSut rategy
150
(;II;\I"6I 'IIc:hHl moku' I'tmEel ements llil
IchimokTui meE lements
161
(;II;\I"I7' I<:AHp plied' l'u'dler I'sychoht�yl
Doug Laughlin 171
IsI ta sE asya sJ ustB eingT aught a NSeyws tem? 172
TheP robleWme Havew ithG ettinignO ur Own Way 172
IsT herea Conspiracy AgatihneSs mta lTlr ader? 173
TraderMsy th-SmarPte oplMea ket heB estT raders 17.
LosinTgr adesA reA cceptable
175
A SuccessfSuyls temW ilFlo rtifYyo ur Convictions 176
Self-SabotaangdeH ow ItA pplies to TYroaudri ng 178
InS ummary-TradePrs ychologOyv erall 179
Cllf\I"I'E8H D.I�'' l''.lIdlng" 'lthI t:hlmoku 181
ConsequencoefsT radinwgi thouat T radinPgl an
18'
TradinPgl an
185
Backtesting
186
Conclusion 192
CII\JI"I'EH9 Conclushtn 193
IchlmokuA nulyslsS heet 195
Blbllogl'aph�'
199
About the Authol' �1I1
Index
�03
Introduction
Rf\CKGROUND
�JapaneCsaen dleiss"a p hrasteh aist welkln owna mongt het radicnagm ­
mWlityIf. t hep hrasies s earchoend th e Interne3t,,8 10,0s0e0ar cheasr e
availaibnlt eh eG oogle search teondgaiyIn.nce o mparisiofn� ,I chimoku"
iss earche1d4,1 ,0s0e0a rchaepsp eawrh,i chi sq uitae d ifferenSctee.v e
Nisobnr oughJtap aneCsaen dlestitcotk hseW esternw orladn dd ida great
jobi llustrahtoiwn igt c an beu sed to beac soumcec esstfruald eHre.l efat
hugem arko n thet radicnogm munitayn,d t odaiyn stitutionst oth deo wn
averargeet atirla duers eJ apanesCea ndlesticiknss o mef ormo rf ashiionn
theitre chniacnaall ysis.
Thibs ookb ringUsl en expt hrasoefJ apanetseec hniacnaall ystiots h e
Westernw orld�,I chimoku KHiynok.oI" c himokKui nko Riysoa system
Umt has been used successfully throughout Japan for years but never has
progressfeOdr \varidnt heW esterwno rldI.fa tradecro mbineJsa panese
Candlewsi thI chimokKui nkoB yo,a powerful syissat veami latbol eh im
orh erI.n f acti,ti ncreastehsep robabiolfitt rya didnrga sticaanldl yc baen
evidencedt rbayd iinnga "papearc"c ounatf terre ading btohoikJs a panese
Candlesticknso tb e discufsusrethde irn t hibso oka nd any additional
will
infomlatrieogna rditnhgit so piicsa vaiJatbhlreo ugSht evNei sonb'oso ks
and traisneimnign ars.
Byt het imet hibso oki sp ublishtehdem, a rket wbieol nle t hahta sn ot
beene xperienpcreedv iounsloyte; v enh istoritcraalde crasn p rediwchta t
thef uturheo ldsT.h erea ren oh istorirceafle rentcoet sh ec urremnatr ket
modelsW.e haves eent hev olatiilnidtey(x V lX()F igu1r.e1 w)h,i cha ver­
ageda valuoef \ 0t o1 2f ora n umbero fy earisn t hem iddloef t hidse cade,
ande xceed5e0df ort hefl rstti me durincgo ltlhaepo sfte h eg lobfalln ancial
marketWsh.y ist himsa rkedti fferfernotm aontyh ehri storical period?
Oneo fth e biggerseta sonthsa thte markeitss od ifferiestn etc hnology.
Witht hea dvenotf t heI nternet, infonnabteir oenc eciavgnel do ba1f.iyn a
matteorf milliseconds. cDruarsiohnf 1g 9 2t9nh,oe c omputewresr ea vail­
ablea ndt eleviswiaosnin itesa rlsyt ageTsh.e f irst telleivvibesr eoda d­
casftr oma planhea dj usotc curreTdw.o yearesa rlitehreb, i ggensetw s