Ichimoku Kinko Hyo

The purpose of this educational series is to introduce to traders one of the most famous indicators available for the regular retail trader, and this one is Ichimoku Kinko Hyo. Now, the name may seem fancy, but as you probably already noticed this is a Japanese approach that grew extraordinary in popularity and that is the reason I want to share with you the beauty of it.

This kind of indicator is extremely useful and a lot of strategies can be developed based on its elements. It is not easy to understand, especially specific parts of it, but nevertheless you will see the usefulness regardless what you are trading: binary options, currency market, stocks, etc.

In our case here I will try to present different strategies to trade binary options using Ichimoku and the strategies are being based on the different elements the indicator has: Kinjun, Tenkan, Senkou A and B, the Cloud, and the all important Chinkou.

Ichimoku Kinko Hyo was invented by a Japanese journalist and the name came from the pseudonym he used: Ichimoku Sanjin. I will not get into more biographical things regarding the author as they can be easily found over the Internet, but I will insist on describing the typical indicator and how each element is being used in trading.

During this project I will take a look at each and every part of Ichimoku, with clear description and how to make the most of the elements. Moreover, we will look at specific strategies, how to use cycles combined with the Ichimoku elements, will take a look at the Metatrader and Jforex platforms for our examples with the Ichimoku, and more important, we’ll have clear examples on how to use the elements that form this indicator when trading binary options and we will go from the five minutes chart up to the monthly chart. Yes, that high a time frame, as Ichimoky elements offer a great deal of support and resistance the higher the time frame is.

Ichimoku Kinko Hyo is one of the most complex indicators out there and it is available to the retail trader. This is important as, if having knowledge about how to deal with the elements and how to interpret them in your advantage, then trading would look clearer. And this is what I hope to achieve by the end of this educational series. Any questions to be addressed at the email below. Enjoy.

Mircea Vasiu
September 2013

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