TradeCharting’s Ichimoku background:
I use the Ichimoku Kinko Hyo on my charts in the following way. I only use the ‘Cloud’ and the two, essentially, moving average lines that are referred to as the ‘Tenkan-sen’ and ‘Kijun-sen’ lines. I am certainly no expert on this indicator and if you want to learn more detail I suggest you carry out a search using your preferred search engine. I simply started off using the basic tenet that many traders use with this indicator and that is: to go ‘LONG’ when price is above the ‘cloud’ and to go ‘SHORT’ when price is below the ‘cloud’.
Applying Ichimoku to TradeCharting:
I have been looking at the Ichimoku on the 4 hr and daily charts for both indices, the USDX and EURX. I am finding that this indicator is of most value when applied to the daily charts though. I have been monitoring this indicator on the daily indices charts for about four months now and feel that I am able to draw some valid conclusions. I have been looking to see if there is any parallel between my trend trading TC signal performance and any particular phenomena on the Ichimoku charts. I looked at the daily Ichimoku charts of both the EURX and USDX and, then, I correlated theses against the success of my TC signals during the same time frame over recent months. This is when a couple of things jumped out at me! I’ve noted these findings on the EURX and USDX charts below. Now, I would like you to click on the charts below to enlarge the image and, then, see if you can predict what my actual ‘Epiphany’ was!