Thread: ASCTrend system
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Old 09-28-2006, 11:31 AM
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Ichimoku indicator. M15 timeframe
This indicator was described on this thread.

How to trade with Ichimoku is here.

To know the differences about indicator which are painting the past and not painting, and why we need the "painting-the-past indicators" please read this thread Channel trading system

Some people are using Cnahhel as exit and so on Channel trading system
Besides the other people are using level techniques with those channels (sorry can not find the level thread now).

How to trade with SHI_SilverTrendsig and Ichimoku (live trading posted) here, here and here.

Ichimoku indicator.

1. It was fully described on the links above. I amy repeat it shortly.
When white line is crossing the price (on historical data) it is the trading signal (white line is coming down - for sell). If this line is crossing the price in almost horizontal way - flat (under 90 degree - strong signal).

2. Cloud. If the price is in cloud - not trading area. If the cloud is thin - flat. If the cloud is wide enough - ranging market Forex Market Conditions, a graphic depiction

3. Borders of the cloud is support/resistance lines.

4. Future.
You may foresee the future possible price movement according to the cloud. As you see the cloud is drawing to the future. This "future drawing" may be changed all the time but anyway we may foresee the market direction or reversal. On D1 timeframe we may foresee the reversal of the price as + or - 1 day. On M15 timeframe it is much more difficult but it is possible. Just to look at the cloud when it changed the color. We have cloud in two color in your image (uptrend and downtrend). No any color is defined for uptrend or downtrend. Simple the color are interchanging with uptrend/downtrend.

5. Reliability. Ichimoku indicator was coded according to high/low so different brokers shoudl have different image of cloud (because of different data of high/low). There is FractalIchimoku indicator by Igorad: he coded FractalIchimoku to have more reliable signal (not for high/low).

6. Ichimoku indicator is havng it own flong-term filter (the same with I-XO indicator): if the price is below the cloud - downtrend, above is uptrend).
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