Trading with Ichimoku Clouds , Liên hệ zalo 0898424904 để hỗ trợ tải nhanh nhất Founded in 1807, John Wiley & SOilS is the oldest independent publish ing company in Ule United States. WiUl offices in North America, Europe, Australia and Asia, Wiley is globally committed to developing and market ing print and electronic products and services for our customers' profes sional and personal knowledge and understanding. The Wiley Trading series features books by traders who have survived the market's ever changing temperament and have prospered-some by reinventing systems, others by getting back to basics. Whether a novice trader, professional or somewhere in-between, these books will provide the advice and strategies needed to prosper today and well into the future.
For a list of available titles, visit our Web site at www. Liên hệ zalo 0898424904 để hỗ trợ tải nhanh nhất n Trading with Ichimoku Clouds The Essential Guide to Ichimoku Kinko Hyo Technical Analysis ltlANESH PA'I'EL ffi WILEY John Wiley & Sons, Inc. Liên hệ zalo 0898424904 để hỗ trợ tải nhanh nhất 1II Copyright <0 2010 by E,!. The right of Manesh Patel to be identified as the author has been assel1ed in accordance with the Copyright, Designs and Patents Act 1988.
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Library ofColIgress Cata/ogillg-ifl-PubUccltioll Dclta; Patel, Manesh. Trading with Ichimoku clouds: the essential guide to Ichimoku Kinko Hyo technical analysis I Manesh Patel. - (Wiley trading series) Includes bibliographical references and index. Stocks-Prices-Charts, diagrams, etc.fl3'2042-dc22 2009052168 Printed in the United States of America.
10 9 8 7 6 5 4 3 2 ,v Liên hệ zalo 0898424904 để hỗ trợ tải nhanh nhất I am ded'icat'ing lhis book to my la.leJalher Ra,manlal. Pald-afa,lher who encouraged me to be the best I can and to follow my dt'ea. If 'it wel'e notfol' h'im, I 'would not be who I am today. A portion of the proceeds from this book will be given to various charities around the world in his name.
v Vl Contents Introduction Ix Background IX Components of a Trading System xv �IIAI·'I'I�K. Ichlmoku Components 1 Tenkan Sen 4 Kijun Sen 10 Chikou Span 19 Kumo Cloud Components 25 Senkou Span A 27 Senkou Span B 28 Kumo Cloud 30 t;IIAI·'rI�K 2: Ichlmoku Trading Plan 41 Components 41 Strategy Description 42 t::IIAI·'I'.�K3 Ichlmoku 8ackl,esting 45 Backtesting 45 EURUSD-A Two-Year Backlest 46 Summary-Two Years of Backtesting 134 137 Examining the Backlest Results 137 Optimize Trading Plan 144 vII "ill CONTENTS 149 Ideallchimoku Strategy 150 (;II;\I"I'I:H 6 Ichlmoku 'I'tme Elements llil Ichimoku Time Elements 161 (;II;\I"I'I<:H 7 Applied 'l'l 'uder I'sychoht�yl Doug Laughlin 171 Is It as Easy as Just Being Taught a New System? 172 The Problem We Have with Getting in Our Own Way 172 Is There a Conspiracy Against the Small Trader? 173 Traders Myth-Smart People Make the Best Traders 17. Losing Trades Are Acceptable 175 A Successful System Will Fortify Your Convictions 176 Self-Sabotage and How It Applies to Your Trading 178 In Summary-Trader Psychology Overall 179 Cllf\I"I'EH 8 D.ldlng "'lth It:hlmoku 181 Consequences of Trading without a Trading Plan 18' Trading Plan 185 Backtesting 186 Conclusion 192 J I"I'EH 9 CII\ Conclushtn 193 Ichlmoku Anulysls Sheet 195 Blbllogl'aph�' 199 About the Authol' �1I1 Index �03 Introduction Rf\CKGROUND �Japanese Candles" is a phrase that is well known among the trading cam mWlity. If the phrase is searched on the Internet, 3,810,000 searches are available in the Google search engine today.
In comparison, if �Ichimoku" is searched, 141,000 searches appear, which is quite a difference. Steve Nison brought Japanese Candlesticks to the Western world and did a great job illustrating how it can be used to become a successful trader. He left a huge mark on the trading community, and today institutions down to the average retail trader use Japanese Candlesticks in some form or fashion in their technical analysis. This book brings Ule next phrase of Japanese technical analysis to the Western world, �Ichimoku Kinko Hyo." Ichimoku Kinko Ryo is a system Umt has been used successfully throughout Japan for years but never has progressed fOr\vard in the Western world.
If a trader combines Japanese Candles with Ichimoku Kinko Byo, a powerful system is available to him or her. In fact, it increases the probability of trading drastically and can be evidenced by trading in a "paper" account after reading this book Japanese Candlesticks will not be discussed further in this book and any additional infomlation regarding this topic is avaiJable through Steve Nison's books and training seminars. By the time this book is published, the market will be one that has not been experienced previously; not even historical traders can predict what the future holds. There are no historical references to the current market models.
We have seen the volatility index (VlX) (Figure 1.1), which aver aged a value of \0 to 12 for a number of years in the middle of this decade, and exceeded 50 for the flrst time during the collapse of the global flnancial markets. Why is this market different from any other historical period? One of the biggest reasons that the market is so different is technology. With the advent of the Internet, infonnation can be received globa1f.y in a matter of milliseconds. During the crash of 1929, no computers were avail able and television was in its early stages.
The first televised live broad cast from a plane had just occurred. Two years earlier, the biggest news INTRODUCTION ,.1 TradeStation Monthly Chart of SVIX.X Volatility Index worldwide was: "In 1927, the president of the American Telephone and Telegraph Company in New York talked by phone to Herbert Hoover in Washington, more Ulan 200 miles away. The president of tile telephone company was able to see clearly the face of Mr. Hoover as he talked.
This proved to the world that electricity could be used to carry sight as well as sound. " During tile mid-1980s, computers were still in their early stages. It was the beginning of the personal computer era-Microsoft was introducing the operation system MS-DOS 3.2, Apple was introducing the Mac Plus, IBM was launching the first laptop computer, and so forth. Technology be gan to advance drastically in a short period.
The size of a microchip was getting smaller and smaller and the computing power within the microchip was exponentially i.ng in a short amount of time. What normally took a room full of technological resources to do was now available in the size of a desktop computer. A perfect example of the rapid change in technology is mainframes. Back in the 1970s, IBM dominated the mainframe "space." Mainframes were perfomling the computing power needed by various industry groups.
It would normally take an entire room size of more than 1,000 square feet just to be able to store this technology. Not only that, the room needed the ability to store all the cabling and also required tile support of a Introduction xl high-powered cooling system. The expense associated with mainframes was in the magnitude of more than $100,000. Only big corporations and uni versities could afford such "luxuries." Small companies had to perform cal culations by hand or they had to hire some of these larger corporations to perform the task they needed.
With the introduction of personal computers in the mid-1980s, small companies and private individuals were now able to directly participate in the computer era. Prices dropped from a six-figure number to a magnitude of $3,000 to $5,000. My personal experience back in the 1980s was with the Apple IJE and then progressed forward with the IBM XT machines witll Microsoft DOS. These were the days where there really was no graphical interface and everything was in the form of pure text.
In the 1990s, technology introduced the concept of the Tntemet and the World Wide Web. A drastic event in a small town in India now can be heard and seen throughout the world in a matter of seconds. lnfomlation trav eled the world in microseconds compared to days/weeks/montlls as it did in earlier decades. III regard to the financial markets, one event in a partic ular market caused an instant �chain reaction" across all financial markets globally within a short amount of time.
Not only can the events occur in stantly but they can also affect everyone, that is, lower, middle, and upper classes worldwide. By the late 1990s, almost every individual around the world had some sort of investment in some financial market, either tluough an online real-time brokerage account, money market account, CD, retire ment account (401(k)), and so fOrtJl. Control was now in the hands of an emotional retail customer compared to a professional trader. In this book, you learn tlle key aspects of becoming a professional trader.
I walk you through the complete process of trading with Ichimoku Kinko Hyo. After you read the book, various resources are available to you to make sure that your joumey into the "Ichimoku world" is successful.'ading In order to trade, two key questions always need to be addressed: Question I: When and what price should we enter the trade? Question 2: When and what price should we exit a trade? There are two analytical models-Technical Analysis and Fundamen tal Analysis-that help the trader get the answers to these questions. Tech nical analysis consists of looking at price and time action for a particular instrument. Today, online brokerage accounts along with other finns of fer a retail customer htuldreds of indicators for price and time analysis.
The indicators are sometimes called "studies" and they are mathematical xii INTRODUCTION formulas that represent price and time action in a certain way. With a cer tain rule set, Ule graphical indicator tells a trader key information on what has been happening with price over a certain time period. Examples of some indicators are Moving Averages, Average True Range (ATR), Stochas tic, Pivot points, and so forth. Hundreds of different strategies can be found with iJlese indicators.
Strategies take the various indicators and come up with a certain set of rules that the trader can follow to trade.