One of the most often used, and robust systems for the Ichimoku Kinko Hyo is the Tenkan-Kijun Cross Setupor what I refer to as the TKx setup.

It is simple, efficient, and great at picking up trends and trend reversals. It is best for the traders interested in trading trends or momentum type moves. The Tenkan Line TL is also known as the conversion line or turning line.

Ichimoku Strategy

It is similar to a 9SMA but very different in reality. A simple moving average SMA flattens out all the data and makes it equal while the TL takes the highest high and the lowest low over the last 9 periods.

Hosada inventor of the Ichimoku Kinko Hyo regarded price action and its extremes as more important than the smoothing data given by 9SMA. This is because price action will mark the key highs and lows, but also turning points where they put a lot of money on the line, or essentially key points where traders entered and exited the market.

The chart below shows clearly how the Tenkan Line is quite different from the 9SMA. Since the TL uses price instead of an averaging or closing prices, it is able to mirror price better and represents it further.

This is clearly exhibited when the TL smoothens if small portions to move with price and its moments of ranging.

Additionally, we have the angle of the Tenkan Line which can show subtle differences in comparison to moving averages. The sharper the angle, the stronger the trend while the flatter the Tenkan line, the slower the momentum of the move.

However, the Tenkan line is preferred for gauging the momentum of the move as opposed forex risk aversion definition gauging the trend.

But, it can be the first line of defense in a trend; a breaking of the TL in the reverse direction of the move often indicates the weakening of the trend. The Kijun Line, also known as the datum line or trend line, is intended to show the overall trend for the instrument.

The only difference is in the periods since the Kijuin Line does it over the last 26 periods. In essence, the Kijun Line was designed to measure the highest high and the lowest low for the last month of price action.

If the Kijun is climbing sharply, then the price has been gaining ground for the last month while if it is flat, then it is the midpoint of the range of price price equilibrium for the last month. Similarly, the angle of the Kijun mirrors the general trend for the instrument. Moreover, since it uses open market currency rates in pakistan today live longer period of time to gauge price action, it is a more reliable technique for defining the direction of the trend than the TL.

And since the price is akin ichimoku trading strategies setups this line during a strong trend, it can act as a stop loss for traders already in the correct direction of the trend. Hence, the trend ends when the price breaks or closes below it by a substantial quantity. The Ichimoku Cloud uses the TKx the same way a MACD trade gold otc options a cross of its two lines.

One of the key indicators for Ichimoku traders offered by the TKx is when a trend is about to begin. This occurs via forming a cross where.

Ichimoku Kinko Hyo Indicator Explained | rehojuvuyequ.web.fc2.com - Trading School, Brokers and Offers

A generic upward cross can be used as a generic bullish signal and a generic downward cross can be used as a generic bearish signal.

Goichi Hosada went even further to give another definition of the cross based upon its position in relationship to the cloud. It is considered a weak signal if the cross is below the Kumo; since the cross is below resistance. The strongest signal is when the cross occurs above the Kumo for a bullish cross, or a bearish cross below the Kumo. This is because the cross is occurring after the price action has cleared the support or resistance — that being the Kumo.

In the example below, the AUDUSD gives a nice upward cross in an uptrend already in progress.

To learn more about how to trade the Tenkan-Kijun cross in a high probability fashion, make sure to visit the Advanced Ichimoku Course page to get access to proprietary quantitative data, and learn how to trade the Ichimoku using rule based systems discussing daily trade setups.

You must be logged in to post a comment. Skip to content Ichimoku Strategy. Ichimoku Strategies — The Tenkan-Kijun Cross Setup One of the most often used, and robust systems for the Ichimoku Kinko Hyo is the Tenkan-Kijun Cross Setupor what I refer to as the TKx setup. What are the Tenkan and Kijun Lines?

This occurs via forming a cross where; -an upward cross means a possible upward trend while a downward cross implies a possible downtrend.

Video Results - Worden Brothers, Inc.

The vice versa is true for the bearish signals. Leave a Reply Cancel reply You must be logged in to post a comment. Ichimoku Strategy Proudly powered by WordPress.