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Ichimokuforex

Bitcoin Downtrend: Potential Drop to $44K Support LevelBitcoin is currently in a downtrend, as clearly indicated by the Ichimoku Cloud tool. The price is trading below the Kumo (Cloud), which signals a confirmed bearish trend. Generally, when the price is below the Kumo, it suggests that the downtrend is likely to continue. From the chart, we can see that Bitcoin has dropped from the $70,000 range and is now hovering around $56,000. The red cloud ahead suggests strong resistance above the current price level, likely preventing a quick recovery to higher levels. Given the current conditions and previous analyses, a strong support zone is expected around the $44,000 level. This level aligns with both Fibonacci retracements and previous resistance/support areas. If the price reaches this level, we could anticipate a strong reaction from buyers. However, if this support level is broken, a further decline towards lower levels, such as $40,000, is possible.
BITSTAMP:BTCUSDShort
by G4ll4nt
GBPNZD Ichimoku Kinko Hyo AnalysisWeekly: Price in Kihon Suchi 33 based on Kyushu Ashi Daily: Tenkan-sen Kijun-sen almost cross Price broke the Kijun-sen Bearish Chiko 9 Kumo flat => Price can still range-down till 19 Sep 2023 H4: Kumo flat, small Kijun-sen flat Tenkan-sen flat Price below Tenkan-sen Price is at Kihon suchi in H4 => Sell when price broke the support (2.10937) and go to lower tf to find edge => If price broke the H4 Tenkan-sen, stay away (No buying and selling)
Short
by UnknownUnicorn30166852
XAUUSD Daily Levels with ICHIMOKU Using the Ichimoku indicator I identified the daily trading levels. If gold is expected to undergo a decline, its first significant support level will be at $1980. If market bears push gold lower, the following critical level will be $1960. If gold experiences an increase, its first significant resistance level will be at $2050, an important price point. This belief that the Federal Reserve is in the process of ending its tightening cycle has led to a decline in the yield of ten-year bonds, followed by a depreciation of the dollar and a strengthening of gold. Aside from that, increased concerns about the occurrence of another recession have led investors to pay more attention to gold, which is considered a safe-haven asset.
OANDA:XAUUSD
by TradingGate
1
Educational : Exploring the Ichimoku Cloud IndicatorIn this article, I have made a sincere effort to explain each and every concept of the Ichimoku Cloud indicator in a clear and concise manner. My aim was to keep the explanations as simple as possible, ensuring that traders of all levels can easily understand and apply this powerful tool in their trading strategies. I understand that technical analysis can sometimes be overwhelming with complex indicators and calculations. Therefore, I have taken great care to break down the components of the Ichimoku Cloud and explain their meanings in plain language. By doing so, I hope to make the indicator more accessible to traders who may be new to the concept or seeking a simplified explanation. Introduction: In the world of forex trading, there are numerous technical analysis tools available to help traders make informed decisions. One such tool is the Ichimoku Cloud, also known as Ichimoku Kinko Hyo. While it may seem complex at first, this indicator offers valuable insights into market trends, support and resistance levels, and potential trading opportunities. In this article, we will dive into the details of the Ichimoku Cloud, explaining its components, calculation methodology, trading strategies, combining it with other indicators, and ultimately demystifying its potential benefits. What is the Ichimoku Cloud? The Ichimoku Cloud is a comprehensive technical analysis tool developed by Japanese journalist Goichi Hosoda in the late 1960s. Its name, Ichimoku Kinko Hyo, translates to "one-glance equilibrium chart," reflecting its purpose of providing a holistic view of the market in a single indicator. Unlike many other indicators, the Ichimoku Cloud is known for its simplicity and ability to convey complex market information at a glance. Understanding the Ichimoku Cloud Indicator: The Ichimoku Cloud indicator consists of several components that work together to generate valuable trading insights. Let's explore each component: Tenkan-sen (Conversion Line): This line represents the midpoint of the highest high and lowest low over a specified period. It serves as a dynamic support or resistance level, indicating short-term market sentiment. Kijun-sen (Base Line): Similar to the Tenkan-sen, the Kijun-sen also represents a midpoint. However, it considers a more extended period and provides a broader perspective on the market sentiment. Senkou Span A (Leading Span A): This line is formed by averaging the Tenkan-sen and Kijun-sen values and then plotted forward by the number of periods used for the Tenkan-sen. It provides an insight into potential future support or resistance levels. Senkou Span B (Leading Span B): This line is calculated by averaging the highest high and lowest low over a more extended period and plotted forward. The area between Senkou Span A and Senkou Span B forms the Ichimoku Cloud (Kumo). The color of the cloud varies based on the relationship between Senkou Span A and Senkou Span B and indicates the prevailing market trend. Chikou Span (Lagging Span): The Chikou Span represents the current closing price, plotted backward by the number of periods used for the Tenkan-sen. It helps traders identify potential support or resistance levels based on historical price action. How is the Ichimoku Cloud Calculated? Calculating the Ichimoku Cloud requires specific formulas based on historical price data. Here is a simplified summary of the calculations: Tenkan-sen: It is calculated by summing the highest high and lowest low over a specified period (typically 9 periods) and then dividing the sum by two. Kijun-sen: Similarly, the Kijun-sen is calculated by summing the highest high and lowest low over a different period (typically 26 periods) and dividing the sum by two. Senkou Span A: This line is formed by averaging the values of the Tenkan-sen and Kijun-sen and then plotting it forward by the number of periods used for the Tenkan-sen. Senkou Span B: It is calculated by summing the highest high and lowest low over an extended period (typically 52 periods) and then dividing the sum by two. Like Senkou Span A, it is plotted forward. Chikou Span: The Chikou Span represents the current closing price, plotted backward by the number of periods used for the Tenkan-sen. Applying the Ichimoku Cloud Trading Strategy: The Ichimoku Cloud can be used to develop various trading strategies. One popular approach is trend following. Here's a simple example: Bullish Trend: If the price is above the cloud, and the cloud is green (Senkou Span A is above Senkou Span B), it suggests a bullish trend. Traders may look for long positions when the Tenkan-sen crosses above the Kijun-sen within the cloud. Bearish Trend: Conversely, if the price is below the cloud, and the cloud is red (Senkou Span A is below Senkou Span B), it indicates a bearish trend. Traders may consider short positions when the Tenkan-sen crosses below the Kijun-sen within the cloud. It's crucial to note that additional analysis and risk management techniques should accompany any trading strategy. Backtesting and practicing the strategy in a demo environment are recommended before using it in live trading. Combining the Ichimoku Cloud with Other Indicators: While the Ichimoku Cloud can be used as a standalone tool, combining it with other indicators can enhance trading decisions. Here are a couple of examples: Moving Averages: Traders often combine the Ichimoku Cloud with other moving averages to confirm trends and potential crossover signals. For instance, the 200-day Simple Moving Average (SMA) can be used as a long-term trend filter. Oscillators: Oscillators, such as the Relative Strength Index (RSI) or the Stochastic Oscillator, can complement the Ichimoku Cloud by identifying overbought or oversold conditions. Divergences between the oscillator and price may signal potential reversals or trend continuation opportunities. Conclusion: The Ichimoku Cloud is a powerful technical analysis tool that offers a holistic view of the forex market. By integrating multiple components into a single indicator, it helps traders identify trends, support and resistance levels, and potential trading opportunities. While it requires practice and understanding, the Ichimoku Cloud can provide valuable insights to both novice and experienced traders. However, it's important to note that no indicator guarantees accurate predictions, and trading always carries risks. Traders should exercise caution, conduct thorough research, and combine the Ichimoku Cloud with other analysis techniques, risk management strategies, and prudent decision-making. In conclusion, the Ichimoku Cloud stands as a unique and comprehensive tool in the forex market, empowering traders with a deep understanding of market trends and potential trading setups. With its ability to simplify complex market information into a single indicator, the Ichimoku Cloud has gained popularity among traders worldwide.
Education
by AhsanTufail
USDJPY The news has no impact, we continue to rise!According to the Smart Money strategy, we are currently in an Order block, but still confident that the price will rise! According to Smart Money, we should wait for confirmation because opening a position now is risky, but if we look at it from the Ichimoku Cloud perspective, we have currently broken the Cloud and successfully tested it, which coincides with 50% Fibonacci retracement. Currently, the Lagging Span is also above the price, confirming that a new uptrend has begun. Open a risky position at 132.501 Placing a stop loss below the cloud at 131.584. Expecting the first take profit at 135.830. Second take profit at 137.953, which corresponds to 2.272 of Fibonacci. With love from Ukraine.
Long
by Scythe_
AUDCAD Ichimoku Kinko Hyo AnalysisMonthly: Range Weekly: Kumo flat Tenkan-sen down; Kijun-sen flat Chiko above candles Bearish Kyushu Ashi Note: Price will be likely sideway-down until around 24 April 2023 Daily: Kumo down Kijun-sen down Tenkan-sen flat => equalibrium in short-term Chiko below candles Bearish Kyushu Ashi => can still continue till 27 March 2023 Conclusion: Buy signal: not recommend to buy because price can be volatile Sell signal: when price in Daily break the support (equalibrium in short term is broken) (0.90454) => Tenkan down
Short
by UnknownUnicorn30166852
Tips to identify potential trendsTo identify potential trends with ichimoku you need to look at 5 lines: -Tenkan sen:Tenkan sen is higher than kijun sen in an uptrend and vice versa -Kijun sen :Kijun sen is higher than kumo clouds in an uptrend and vice versa, if the price is lower than kijun sen, the market is no longer a potential trend. -Kumo:The kumo shape is very important, it shows the long term momentum of the market, if the kumo is thin and small then the trend is easy to retrace, if the kumo is wide and long it is a stable trend. -Chiko span:It is one of the most important lines but everyone ignores it, it shows the current momentum of the market, if the chiko span crosses with the candle then the market is in range because the momentum is at zero. Example with Xauusd: -Chiko span on candle -Price above kijun sen -Kumo is wide and thick ->So now Xauusd is trending up potential !
FX:XAUUSDEducation
by tapham2403
EURUSD: I'm looking for short trades today.EURUSD regarding the Long-term factors is still bearish and it's around a good discount! Considering mid-term factors we are still bullish but a powerful bearish momentum could be observed. In shorter term a bearish channel is formed and the linear regression channel is almost perfect. Short the pair around the red zone or in reverse to green zone after breaking the zone down. NOTE: Consider German CPI news and don't trade against news in the early hours after announcement. Cancel the trade if you see a big surprise in CPI today.
Short
by AliSignals
2