Forex Market Analysis (Ichimoku Trading Strategy) | July 4, 2018
Good morning, everybody, it is. 729. In the morning it, is the fourth of July and. Yeah. I. Hope. You guys those. Of you here in the States. Hope you guys are I have good plans or relaxing, plans or fun plans but regardless of your plans I hope you stay safe and that. You. Don't. Overly. Indulge. Because. We still have two. Trading days left in the week, I, know. For, me that. I, will. Be taking the rest of the day off. Which. Means I. Still. Trade, when I take my phone with me to monitor the positions. All. Right I. Wanted. To go over, just kind, of some, of the trades from yesterday. Pull. Up the whatsapp, here. Because. We had some fun movements, throughout the day and. All. Right there we are okay, so we. Had a long in gold. We. Wanted to go along at, 12:47. Or. 1250, through 1247, is where we. Shall. Look over here. So. 1247. Is where we want to go long yesterday that, was early in the morning at 6:46, and then we. Wanted. To go long again at. 12:53. 59, on the 1-hour ichi muku and that was worked out very. Nicely. The. Pound. We. Wanted to go long. At. Where. We adhered pound, long at 1:30 1:9 and. That. Is where we are sitting right now. Pretty. Nicely not. A whole crap ton of pips higher but higher, nonetheless, and. Then. We wanted to go short on the dollar yen at. 110, 84 that's worked out nicely in fact currently, we, are sitting in another, good. Condition, for a short, actually, but. The. Euro we, wanted to go long. At. Where. We had here 116. 65. Now. We did, get up there and we've kind of retraced a little bit again we're in the holiday, right now there's. There's, gonna be almost. No. Movement, throughout. The rest of the day after we, you know after. 8:00 in the morning Central, Time so, you. Know we're just not gonna see a lot of participation, for the rest of the day here. But. That trade is still, you. Know active, and when. We should look at so yeah. One. Probably. 161. 1673. Maybe is gonna be the better option right, now. Okay. And, then we have the pound. We. Wanted to go pow oh we did that one New Zealand dollar we, wanted to go long at. 6788. Which. We did not get to but. That is still the. Trade we're looking at so we're, really looking at. Legging. Span to break above and, then. We can take that trade. And. So really we're just looking at the. Same. Value area. The. Euro we. Did, you do the euro one yeah. We did. Sorry. I'm look I said I was, looking at the Aussie dollar and I said the euro Aussie. Dollar. We. Wanted to go long yesterday at 73. 97, that. That, did, hit, it went higher and now, we are just, sitting below, that, zone currently. So. Kind. Of a wide, chop, zone here but still the. Area. We're looking at if probably. One look at on a four-hour chart oops. Area. We're looking at is is, a. Good. Man, to be all the way up here but I'd say. Four. Hours not a very good entry there one. Hour. You. Know what actually let's use this as a good example. So. I. Was. Rereading. It's, a great. Book. Trading. With Ichimoku by, Karen. Ple. Pillow. Loli. I, can't. Remember if that's the. Correct. Way to pronounce, it but I'll put it in the portal, the. Name of the book and. The, author. I. Don't. Know if that's how you spell her name or not but. She. Has a fantastic. Take. And probably. One of the most Authority. Books. On the Ichimoku system. And, what's. What's great about that book is she goes over and I've mentioned these before, but she goes over. The. Three. Other kind of. Parts. Of the ecosystem that we never really talk about that's the the. There's. The the, wave theory, the timespan. Principle. And the. Price. Principle. And. Without, going into a lot of detail, there's. In. A nutshell the. Application. Of. Hoe. Sadhas'. Wave. Principle, in the h mu KU system and the, price.
Projection. And the. Time. It's. Very, very very very. Similar. To Western. Technical. Analysis. You. What. What, I think is kind of cool is I've I've. Used the Ichimoku system, before I started using Gann forever. In a day ago and. Well. I should. Say well. No that's not sure but I started. Utilizing the, Ichimoku system, along with Gann. Just. Because for whatever reason they. Seem to complement each other very well and so, I came to that conclusion on, my own but it wasn't until I started reading more literature that this. Is act I was kind of on to something and I didn't know it even, though people. Knew this for. I've known this for a while I just didn't know that but. The. Ichimoku. System, is kind of like an amalgamation. Of. Gann. And Elliott, in. Its. In its approach. The. Difference, is is that. Really. Relies with the wave theory in. The. HM Lucas system, really. Just, kind of focuses something moving in threes. Threes. Or. Fives. No. That's not. Yeah. Yeah that's right so. Elliott. Wave, requires. You to do things in fives, like. Things have to move in a 5-way pattern that is that I mean Elliott. Is very, very. Dogmatic. Well, no I I think. Elliott. Titian, 'he's have become, very. Strict. With the application, of Elliott's theory. And. That. Is as, a result that's kind of been what has happened as people have gotten a little strict. With the application, of Elliott don't break any of the rules. Whereas. The. Ichimoku. Systems, Wave Principle there's, a lot of leeway. And. She. Talks a lot about in that book about the difference between the traders and Japanese, markets, and. The. Traders and US markets. Or. The only thing they have in common is, that they do not change the default settings, created, by Deutsche. Asada and. Other. Than that the. Western. Analysis, is a. Lot, more rigid. Than. Japanese. Analysis. So. There. Are pros and cons to that but. Implementing. The. Ichimoku with. Gann has, worked. Marvelously, for, me. It's. Definitely, easier, to learn. And apply. It. You Mucca Mucca, system, to your trading. That. Is, but. But hands down I mean. I'm. Gonna say this over. And over that, the. Ichimoku system. Is. Really. One, of the best. Systems. Ever. And. I, think it's one. Of the best ways to learn how to trade. And. I'm just kind of setting this up here so let's. Go, ahead and, look. At you. Know I want to make sure that this isn't like. Oops. Okay. One. Of the best ways I think to. Trade the Ichimoku system. You. Know what let me just get rid of. Let's. Look at the euro. And. You'll. Notice that what I have here is I have three different time frames you remember that itchy mukou system means at a glance so we're looking at what what the market is doing. Just. At a, glance and. I, will put these lines back here just for. These. Purposes. Okay. So. All. Right so. Right, here I have in, the top left I have the daily, chart and. Then. I have the. Don't. Want the weekly. 4-hour, chart. And. Then. I have. The. I. Have. The. One-hour. Chart, all right so. How. You can get this on trading view is. You. Click. Here and, you. Can pull up three or you can pull up four. Sometimes. I like that for because I like to have the weekly as well. But. Otherwise, you. Know just like three. And. So what I'm looking for, is to, kind of give myself an idea of what's happening because you. Know longer-term. Charts. Are going to tell you a more, honest representation of, what a trend is doing, but. At the same time. Changes. And trends happen, on faster, timeframes, first okay. So. Knowing, that. We've. Already done a lot of analysis, using Gann and looking, at the day counts and the seasonality issues. Then. We just need to really like. Form, the, proper entries. All. Right so. If I'm looking at the daily chart I. Can. See that I have. Some interesting conditions, being met and so, I'm. Above. The. Baseline. That's. The kind of signal line and then, or, the conversion line then here's the baseline that's acting is a pretty flat. Area of resistance here so, what. I really need to do is I need to get above that so. I'm really looking at that 16. 16. 82. 1683. Is where I'm, looking, at a long entry on the daily. All. Right. We're. Gonna deviate, a little bit here, because. The. Old rules, that. Were the rules that I use, we. Can amend those. For. Using. MTF. It's muku multiple time frame each muku. So. On the daily I already know that we, have some conditions, met for looking at a long, trade. However. I. Do. Want to take a note that we are up against a resistant, zone and. We. Have. Not. A lot of. Room. To go higher on the stochastic RSI also. The, volume. Look. At the volume over. The last few days it's a holiday week there's not, a lot of volume. Now. I want to look at the 4-hour chart. 4-hour. Chart is telling. Me that this is getting. To be a fairly, bullish. Sign. Here we have this. Bounce. Off of the, cinco's. Ban a and, B, and. We are above the baseline.
And. We. Have price. Above the cloud we're waiting for the leggings band across up so that is telling us that's that 1684. Level this is this, is really the same level, that we would need to enter on the 4-hour chart it's the same level, answer on the one-hour chart. All. Right then, I'm looking at the hourly, and I. See you. Know we are kind of slightly above the cloud or below the base in the conversion and. Which is lagging spans below the cloud but to, get to the conditions, where I need to go long. I could. Go long, at that 12, at that 1673. And that. Is where that entry, is and that, would provide I, believe. Sufficient. Enough. Of an entry, to get some early pip gains and. To. Get the momentum moving higher. All. Right, so. Multiple. Time frame. Analysis. With. The. Ichimoku system, like this is. A very very. Convenient. And easy way, to trade, and. Definitely. The. Lagging, span is. What. You want to pay the most attention to, well. The legging span in the cloud. Whatever. The leggings band breaks above, or below that cloud that is a thing, you want to pay attention to, I mean. Just look at this on that daily for example. Look. At how often. We. Find. The. Lagging, span. Let's. When. The leggings fan finally does break, out. Of the cloud. How. Powerful, are those moves when that happens. They're. Pretty powerful, this. Would be something to be a to, be a watchful. Of as that when you see the legging span although cloud was sitting inside pressure. Was inside the cloud at this time. But. When it finally does break, the cloud long with price we see some pretty responsive. Rallying, also. I want to point this out is that. The. Legging. Span. Reacts. To previous, price action as a source. Of resistance and support so, let's. Go to the market replay. Go. Right here. And. We'll see this play out. Okay. Now we get. It's. Moving below, the cloud prices stuck inside the cloud. There's, our entry right there. 16:39. Right. Here right here right here. Notice. How, the. Lagging span. Responded. To the. Top of these candlesticks, as a support, level. And. Notice. How authentic. That is in. Past, price action. Okay. That. Is a, awesome. Awesome tool, and I, I. Think. I've talked about that before maybe I haven't but yeah. That lagging span acts. As a strong. Support. Or resistance zone. For. Price action. So. If you let this play out here. We. Can also, tell. When. To probably exit, a trade. And so. We would probably be looking at. Exiting. Now. We. Would take profit. At. That level. Excuse. Me I. Lost. My voice a little bit. And. We see price action playing out here this is the daily chart of the euro this is on the market replay okay. And. We. Are watching for conditions. To be met with the legging span to take a trade. When. The legging span is inside price it's, just like price being inside the cloud it's just, telling us that we're experiencing. Something happening okay there was our short, entry it was right there, and. Now we see prices falling. They're. Continuing, to fall. Still. Falling. We're, getting up to our current price action. Cuz. On a daily chart and we see prices, they, are. Moving. Flatter, whence we see the leggings pants start to enter inside, of. Price. Here like it is that. Is. Usually. A, heads-up. Warning, sign, that there's, something happening, that there. May be a change. Okay. And. So. You. Know we see these. Instances. Repeat themselves over and over where. You. Have this move you. Get the legging span inside. The candlesticks, price, inside the cloud that. Becomes a, consolidation. Zone for the next breakout all. Right. Just looking at the other broader. Market. Here, you, know not, looking, at a lot of trade opportunities. Just. Because it is a holiday and. You. Know we just don't, get a lot of activity. We. Should. Notice. That, let's. Take, a peek at Kryptos real quick. Let's. Look at the Bitcoin, market. So. Bitcoin. We. Had a little bit of selling, yesterday. But. It wasn't on the huge amount of volume and now it looks like we've found some support again.
We. See. On the daily, that we are. Over. Done here, but. Then if we look at the four hour. We. Bounced, look at that we. Bounced right off the baseline, and the legging span it bounced, off of this, top. Of this candlestick here. So. That's a pretty, that's, a pretty strong case that we're gonna move higher here that. Was in the 4-hour chart. And. If we look at the hourly chart we can see well we're inside the cloud. But. We don't, have. To wait very long to, take, a long trade because. If. We do break out above the cloud and price and lagging strand breaks out above the cloud as well we're looking at that. 6624. Zone it's probably gonna be the area that we see price, rally, higher. But. Again on the daily it is showing us to be in a a. Difficult. Area. To trade. Above. Okay. The. Otherwise rest of these markets we've had some pretty good. Rallies. And card on oh that's, my favourite cryptos to trade. We. Have. Here. It is very. Similar chart to bitcoins. Expansion. Set up here. Looking. Forward to this so, we. Could see some moves in kryptos as well going into the weekend but otherwise, you. Know those are markets, and. We'll. Just trade. Trade, carefully, on holidays. Or don't don't trade it at all. And. That is it for me I'm gonna go enjoy my my. Holiday. And I, wish, the best of you a good, rest of your trading day if your trading and if you are celebrating the holiday have, a safe holiday and I see you all tomorrow, Oh buddy.