Ichimoku Kinkou Hyou (Itchy Mushrooms)

[kennynah]

very crisp explanation....well done man !!!! makes me understand IKH much better when viewed from this angle...

[Cheng]

Correct then I put. Salah I dun put. Like that, I always gain points oni.

LOL gran, very nice YZJ clouds

[blid2def]

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[blid2def]

Update on Yangzijiang (YZJ) chart:

Price has started to make positive progress after initially being hampered by kumo resistance (see: viewtopic.php?f=16&t=728&st=0&sk=t&sd=a&start=100#p35253). Still have to watch and trade in line with overall market movements though.

[blid2def]

Noble Group chart: 50day SMA / EMA resistance, kumo resistance. Whipsaw upcoming perhaps?

[kennynah]

if this even makes sense....

look at the P/V for the last 2 weeks or so... the price has gone up but on decreasing volume... lesser and lesser buying interests...

classic text book concern....that price may not hold up

[iam802]

The resurrection of Ichimoku.

Why? The year end is less than 2 months away. And it is always good to review some trades.

Given that this is my first year trading using Ichimoku, I find that I am slower reacting to buy-sell signals. However, even with that, it still provide a fairly decent return (thanks in part to the March - July rally).

I am not going to kid myself that I pick the right stock. A lot of it can be attributed to US govt. pumping the money into the system.

So, this is an example of me following my trading system and getting it right.

There will be another day when I will talk about my lack of discipline and how it also create some losses.

====

Here’s a review of how I have traded PALM using Ichimoku.

I will provide 2 set of entry and exit prices. You should be able to identify a 3rd set of entry and exit (which will not result in much profit).

1. Entry 1 (Jan 8, 2009)

- PALM gap up on news of Elevation Partners investing in it.

- The chart shows the price and Tenkan sen, Kijun sen going above the kumo

- Let’s assume we got in at the high of the day at 6.58 (Day 1)

- Subsequent days did not go below the low of Day 1, so we are not stop out.


2. Exit 1 (Feb 27, 2009)

- Tenkan sen – Kijun sen has a bearish cross

- We assume we get out at the low of the day at 7.124

- Profit = (7.124 – 6.58) = 0.544 per share


3. Entry 2 (March 23, 2009)

- Tenkan sen – Kijun sen Bullish cross

- Price also rebound off kumo support

- Get in on March 24 after the price has cleared the resistance at around 8.69 , entry price is 8.75


4. Exit 2 (July 23, 2009)

- Tenkan sen – Kijun sen Bearish cross

- Get out at 13.71 (low of day)

- Profit = (13.71 – 8.75) = 4.96 per share

So, total profit from this 2 trades on PALM is $5.50 per share

[kennynah]

champion

i missed some mushrooms....

[iam802]

I can’t remember where I have gotten these Ichimoku notes.

It was in my little black book for trading. I will be glad to acknowledge the source if anyone can point me in the right direction.

Filing here for future reference.

1. If price traverse the Kijun sen, this gives the indication of a directional change.

2. If price travel too far from Kijun sen
- suggest overbought or oversold
- look for consolidation and/or correction

3. If the Chikou Span traverses price, this is an advance indication that direction may be changing
start looking for the key level

4. If price travel too far from Kijun sen on the chart
- look at the chart directly in front of it (chart of different timeframe)
- have a stop in place to take profit

5. A realistic stop is determined by placing the stop at a level where if traversed, it has neglected the prevailing sentiment.

[kennynah]

I can’t remember where I have gotten these Ichimoku notes.

It was in my little black book for trading. I will be glad to acknowledge the source if anyone can point me in the right direction.

IIRC, it could be Professor Shitake