How To Trade Weeklys Using The Ichimoku Cloud by Andrew Keene
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Because it considers the past, present, and future, the Ichimoku cloud is a highly significant technical indicator. It is also free and available on most trading platforms. If you’re unfamiliar with the Ichimoku cloud, here are the fundamentals:
At first appearance, the phrase Ichimoku appears to indicate. Is a stock bearish, bullish, or neutral at first glance? Where is a decent place to enter and exit? Let us examine the elements that comprise the Ichimoku cloud:
Let’s start with the tenken-sen (red) line. This line depicts the short-term trend and is computed as follows:
Tenken-sen line = highest high + lowest low divided by 2 for the past 9 periods.
This formula incorporates a Fibonacci retracement into its computation. It is a useful indicator since it outperforms basic moving averages.
The longer-term trend is represented by the Kinjun-sen line (green). This line’s computations are as follows:
Kinjun-sen line = maximum high + lowest low for the previous 26 periods divided by 2.
As a result, the tenken-sen and kinjun-sen lines illustrate the current short-term and long-term tendencies of a market.
The file size is 290MB.
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