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Thursday 20 April 2017
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hi...pls explain ichimoku
ReplyDeleteIchimoku cloud –also known as ichimoku kinko hyo – indicator that identifies support and resistance, identifies trend direction, gauge momentum and give trade signals
DeleteDeveloped by Goichi Hosoda,1969
It is an one look equilibrium chart – means with just a look chartists can determine the trend and signals within it
Ichimoku Chart has five plots
1. Conversion line – (9 period high+ 9 period low)/2
2. Base line - (26 period high+ 26 period low)/2
3. Leading span A – (conversion line + base line)/2
4. Leading span B – (52 period high + 52 period low)/2
5. Lagging span – close plotted 26 days in past
Conversion line is faster and base line trials the conversion line.
CLOUD (kumo) - Leading span A and Leading span B form the cloud
Two ways to identify trend using cloud –
1. Trend is up when prices are above the cloud and trend is down when prices are below the cloud
2. Uptrend – leading span A rising above leading span B. Downtrend – Leading span A falling below Leading span B
Cloud can act as support and resistance
Bullish signals
Price moves above base line
Conversion line moves above base line
Bearish signals
Price moves below base line
Conversion line moves below base line
Conclusion
Chartists should look for overall trend using cloud
Once the trend is clear, signals can be determined by using the price plot, conversion line and base line cross overs
Can be used in conjunction with other indicators also
http://d.stockcharts.com/school/data/media/chart_school/technical_indicators_and_overlays/ichimoku_cloud/ichi-1-dowexam.png
Deletehttp://d.stockcharts.com/school/data/media/chart_school/technical_indicators_and_overlays/ichimoku_cloud/ichi-2-ibmcloud.png
Look at the chart for clear understanding of the concept...
Hope my answer helped you to gain some insights about ichimoku clouds
The Ichimoku Kinko Hyo or equilibrium chart isolates higher probability trades in the forex market. It is new to the mainstream, but has been rising in popularity among novice and experienced traders. More known for its applications in the futures and equities forums, the Ichimoku displays a clearer picture because it shows more data points, which provide a more reliable price action. The application offers multiple tests and combines three indicators into one chart, allowing the trader to make the most informed decision
ReplyDeletehow does the cloud part work...
DeleteMy question
ReplyDeleteWhat are the key things to look out for while reading the annual report of the company?
on the qualitative side first read about the companys products and services from the website e fore reading the annual report...it will put u upto to speed with what the company does..in the annual report read the MDA (management discussion and analysis)this will give u basic idea about the business the company is doing..how they have progressed in the last year and what is expected in the future. always atleast read last 3 years AR...then you will be able to gauge what the company has commented in the past and how have they delivered over the years...u will get fair idea if the management makes genuine comments about the business...on the quantitative side u can go through the financial statements and see the growth in revenue..margin picture...debt profile...free cash flow generation...
DeleteCan you name some important ratios to watch out for in financial statements
Deleterevenue growth, debt equity, ebitda margin, inventory turnover, cash conversion ccycle
Delete