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Learn the Powerful Ichimoku System for Stocks and Forex Trading
hello everyone this is Dahlia here hope you're well let's get into the action today right we are talking of the Ichimoku system okay this is a system that not many people will discuss in forex I guess because it's a bit complicated but today I want to help to dissect this system okay we will discuss the history of the system introduce it to you what are the components of each amaku we'll talk about the cloud we talk about support our assistance how we generate signals and then we'll bring it to conclusion my hope is that at the end of this presentation today you will be able to make use of it in cuckoo system Tomoko system in your trading you can proceed how it works on a child how you can generate reliable signals from its introduction so the cloud is service knows is known as a chemo cooking oil it's a very good indicator that we find support and resistance we also identified train directions kgs momentum and provide trading signals so a chemo cooking kyo translating to one look equilibrium chart with one look trader can identify the trend and look for potential signals within that trend what is the history so the history is that a guy called Gao Qi or Zoda created his system back in 1968 after more than 20 years of testing like this are the component of Ichimoku okay the first one is called the Tekken chain the combustion line as the English word for it the second one is the kingdom chain baseline does the English word for it the third one is the Kiku span or the lagging span we have the Shaku span a or we call it Lydian span a this is this line here the top line the shackles Bambi or the Lydians Bambi which is this line below here and in between the shackle span a haka span P we have the kuhmo the cloud okay so we are going to discuss each of this indicator one after the other okay see the importance of the role inside this grid system so taken chain art a condition is the closest indicator to the price I look at it as nine simple moving average although it is not a simple moving average it is calculated by having a high Plaza low / – over the last nine period okay hi plus no / – for the last nine period the angle is very crucial in to how we use it and it measure a short-term trend and we use it to generate signals the next one is the kingdom chain let me show you in the components so we have talked about taken Shang and now we are talking about kinyoun Shen okay the blue line the blue line changing Shen right so like his brother is also calculated by using high and low / – over the last 26 period remember the brother which is the Tekken chain is over nine period the Big Brother Kingdom is over twenty-six period also the use is used to measure our trend even though of over a longer period and we use it to generate signal the nest indicator is called Chi GU span let me show you where it is in the components this is the chiku span this indicator here is a jig expand tell you what it does she goes bang it calculated by taking the current close price shifted it backward 26-day backwards okay so it is the indicator that looks like this and is always lagging behind the price this is the current price here and this indicator is always 20 sister behind okay why do we need indicator that is 26 days behind or 26 period behind because it allows us to quickly see how to this price action compared to the price action of 26 periodic go so sometimes when you look at it immediately prices above chico span you know or we are in uptrend price is trading below Chico's plan yeah we are in downtrend it is very important the next indicator we'll look at is called the Chaka span a okay let me show you where it is in the component this is the shell goes Chaka span a up here we talked about that then we move to Chicago span build this line here and in between them is called the cloud the cloud is in between Chicago span a this is leading span a shell goes Bambi or the Lydians Bambi and between them is kuhmo the cloud so let's go and check them out so Shaq will span a as I said from the kuhmo along with Jacques Bambi so how do we calculate it we use Tekken Shane and kitten Shang we added two together divided by 2 and shifted forward into the next 26 period let's show what we mean okay how do we get this line this line is by taking the value of the red line Tekken Shane added to the value of the blue line King got conjunction and divided by 2 not only that we now project it 26 period forward into the future fantastic same thing here with the shadows Bambi we take we calculate the 52 period high and low of the last 52 period divided by 2 and we shift it forward into 26 people forward so this is the beauty of each moko system is just one of very few indicators or system that can tell you the gauge of trend in the future in the next 20 seas period okay so shanku span a which is this line here is shifted to an sis period as we said and the beauty of it is it allows us to quickly see at a glance where support and resistance from two days ago decide similarly circus Bambi we have looked at that as well it also allow us to see longer-term measurement of equilibrium ahead of price so how do we get that we use twenties 52 period high unload vera by two and we project it 26 period ahead of time okay actually it is the longest time view of the of equilibrium within this system reason you know we already have the first indicator which is the taking shine which uses nine period then we have the shingles chain which uses 26 period and now we have shampoos pan which use 52 period so is the longest indicator here with longest period okay the kuhmo the kuhmo is the main part of this system of the chicken chicken coup system so between the leaders plan a and B you have the kuhmo so up trade is when the prices are both kuhmo downtrend is when the price is trading below cumin and when the price is inside the cumin is a flat trend there's no trend okay because the kuhmo or the cloud is shifted 26th day forward it provides a glimpse of future support and resistance let's quickly look at it look this is the current price and this cloud is actually plotting in the future to the future 26 period to the future so it's providing us a glimpse of where support our system will be in the future okay cloud tick nice so cloudiness if the cloud is tick it it shows that it would be difficult to break through very easily and vice versa when in setting cloud it shows the resistance is not that strong so we talk of resistance and support level okay in an uptrend the cloud provides supports the first line which is the leading span a is the first line of support the leading span B is the second line of support in uptrend so prices come up bands of the the cloud comes down pants of the cloud in downtrend is the same scenario Kiko span Chico span a is now below the de-spawn B is now above so prices touch the cloud and banks bark touches the cloud and bounce back and this has become a resistance for this price so how do we analyze the cloud okay looking at here we see price penetrated cloud here breaks the cloud and trends up so remember this is the leading span a and below is leading zombie in between them is a kuhmo is a cloud cloud has now turned to supports so is supporting this this movement cloud is supporting this movement right and finally cloud is broken downwards and then we change direction to bearish you see it is now red here so when we are off trend we are looking for buyers bullish signals when we are down trend we are looking for sell signals similarly here this is a downtrend scenario we broke the cloud downwards I will see that the cloud as now turn to resistance here is helping us to protect the price falling also here it protects protected price from falling down we see that the leading span a and B are swap position now leading span is below the dense one b is above finally the cloud is broken here which signified changing trend so we are now uptrend and hence we have our cloud grain and this cloud is into the future 26 period into the future is giving us idea of where support will be for example if this guys move up and try to calm down it will MIDI support if it cannot break the support is likely going to trade upper trade up but if you if you break this support downward then our direction has changed trend will change to bearish now we are looking to how we generate signals so we have two methods of generative signals one is two lines crossing each other the tension and the key Junction and the second one is price crossing one line with conjunction line the technician is a red line the conjunction is the blue line so when red crosses over the blue is a by when red crosses over the below the red is a cell okay now let's look at I work okay so when we talk about signal there are three types of signals the strong the Nutri and the weak okay the strong signal is when the bullish signal happens above the cloud strong bullish signal when bearish signal happens below the cloud strong bearish okay when signals happen inside the cloud we say it is neutral okay and when signals happen in the wrong direction of the cloud we say it is a weak signal example bullish signal happens below the cloud is a weak signal bearish signal happens above the cloud is a weak signal here are the examples okay this cross of red above the blue happens below the cloud it happens below the cloud so we say it is a it is a weak signal here it happens above the cloud we say it's a by strong buy signal and here it happens inside the cloud we say it's a nutri buy signal okay let's look at the downtrend it happened the cross of the technician downwards with the conjunction the red cross downwards on the blue is a sell signal inside the cloud is nutri below the cloud is strong below the cloud is strong above the cloud is weak sell signal below the cloud is strong finally below the crowd are the como is strong okay now let's look at typical by examples so this is strong tie the technician crosses above the kin-yuen chain above the cloud that is bye-bye-bye-bye above the cloud see what happened is the como the cloud is now turned to support for us so prices are touching the cloud and keep balancing up and finally cloud block prices now is trading below the cloud and we are now down trend so the great thing about a komoku is that it keeps you disciplined it discipline you into your trading so along all this while you never look for bar sell because you are above the cloud and from here onward your perspective about prices change now you are looking for sell signals as we see here so under the cloud you are only selling ok so you sell in on the de cloud strong seller the Red Cross is below the blue this is a nutri sell because it happened in the cloud strong seller strong sell and bank we broke the cloud suddenly we change trend to option from here onward so we have discussed how two lines crosses each other that is the red and the blue line now we want to discuss the second method of generating signals this time it is not true two lines crossing each other it is actually a price crossing a line and which of the lines the blue lines the base line also we have three types of signal for this type of these three types of signal for this type of crossing we have the strong the Nutri and the weak as usual when we have a bullish crossover above the kuhmo we say it is strong when we have half the bearish signal below the cloud we say it is strong when the crossing happened in the cloud we say it is a nutri and when the crossing happened in the wrong direction of the cloud will say it is weak okay now let's see some examples so now remember it is not lines crossing each other now it is price crossing the blue line so price touch this blue line and fall back sell signal price crosses this blue line and go back off that's a buy signal okay also another another example price touches the blue line here and fall down again as a sell signal price touches the blue line which is the kin-yuen chain as a that's a sell signal prices touches the blue line changing chain and fall back as a sell signal and here is a buy signal price touches Kingdom Kingdom chain and goes up as a buy signal okay guys now signal summaries so we have seen four different types of signals okay the big trend is when price move above the cloud in a bullish bullish signal you see price break through the cloud you say yeah the trend has changed to polish secondly when cloud on from red to green it means trend is changing the momentum is going to us bullish okay when you see price move above the baseline that's a bullish signal when you see the conversion line move above the baseline that's a bullish signal okay for a bearish signal price move below the cloud does it trend cloud turn from green to red that's also telling us that we are bearish price move below baseline is a very signal and the combustion line move below the baseline is also a bearish signal so in conclusion guys the Qi moku cloud is a comprehensive indicator designed to produce clear signal it is one of those indicators that keep traders very disciplined you only look for trade by opportunity above the cloud sell opportunities below the cloud so once you establish the trend then you go along the trend the strongest signal is when conversion line that is the technician crosses the conjunction the conversion line crosses the baseline that is the strongest signal and when the when the crossing of the red and the blue happen above the cloud when it crosses up that is a very strong signal and the same thing very strong sell signal when it crosses down the cloud okay so it is very important to trade in the direction of the bigger trend so guys this is the Chi McCool system you can practice it with conjunction with any other indicators there is no harm in it it is well developed and it's well adjusted to different market conditions you can use it in for X you can use it for stocks in fact it is designed for stocks but it has been imported into forex trading so guys I hope I am able to explain to you what you see kimijima cool system how we generate signals from ichiraku and I hope you'll be able to open up a chart put a sim opponent and then you can see great signals that you can find using this system okay guys remember to subscribe to the channel so that we can have more quality videos outs and thanks so much for all of you that you have subscribe already I've read most of your great comment in fact this video was a product of one of your comments one Rises can I explain can you explain to us how a chemical cloud work so I try to do this so if you have any burning question or topic in your mind shoot it out you know you might not even be aware that we can do a video for it okay guys once more thank you so much and I look forward to the next video signing off now is dari
