The NT Wave, Ichimoku's forgotten cousinDuring back testing and studying I come across these types of situations from time to time.
In Ichimoku NT price projections don't come up all the time but when they do it's nice to have seen them coming as they're short targets and once established (in my cases) I want to capture the profit I've made especially on the daily time frame. Like the example it's a four month turn-a-round to realize your limited profit/s.
Most the NT targets I get i'll have 1:1.5RR on average (not something I'd want to wait four months for) that's not taking into account we had a nice equilibrium range of 79.620 - 77.768 before hitting NT target we could of taken advantage of, but I digress.
The point of this post is to show a NT price projection and the importance of Time (theory) when trading.
In the chart example from 'A' point i'll explain; (I won't be going into everything on Ichimoku just Price and Time Theory)
Wave/price theory Points
A=75.406
B=78.668 = NT C + (C-A) = 80.130 (Now I have a way to spot NT projections from the start but It's something I've learnt from my own study, I want to show this from a unknown example)
C=77.768
So this is a our first and shortest target (we do get a 'V' Price project of 79.568 but straight away we know this isn't a 'V' set-up if we stay in line with Ichimoku study)
On the 30/Jun we are in a complete return to the Bullish market (according to Ichimoku) now that's the lines are out the way we will focus on time. Without adding every time element to the chart I focused on "Equivalent Values" and one complex/compound value "76" being one loop or three periods.
Time will determine if this way of thinking (referring to the NT projection is correct) now taking our past time history (equivalent values), we will project them forward, these will be our Equilibrium Points (hengi points) which is the important day of charge according to ichimoku.
From the point of entry to our first target the market moves with-in a equilibrium range but doesn't break wave structure (March - Apr we get a weak three wave down but they are noted and smoothed as one 'I' wave)
On the 15/Apr we hit our first target 80.130 (NT projection), Equivalent value '72' our Hengi Point, this is where I would be taking my profits and on the 17/Apr selling pressure returned to the market and on the 18/Apr price dropped, being one off complex value 76, one loop, according to Ichimoku is a reverse of trend number and one to be aware of when price reacts around this value.
Very simple, haha but joking apart it is, once you start to understand how Ichimoku can be used the door of opportunity is huge.
Hopefully this helps in some way with those struggling with Ichimoku, or get a NT Price Value. If others who study Ichimoku have another take I'm happy with the discussion to continue below or a msg to me in private is welcomed, always willing to learn more when it comes to Ichimoku.
