Trading with Ichimoku Clouds E-Book

Manesh Patel

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Wiley Trading Series
• Sprache: Englisch

Seitenzahl: 209

Veröffentlichungsjahr: 2010

Beschreibung

The essential guide to today's hottest technical indicator-the Ichimoku Kinko Hyo cloud chart Ichimoku Kinko Hyo is a technical system that illustrates support and resistance values in a simplified form and is considered an extension of the very popular candlestick charting system. In fact, the system was built on the idea that at "one glance" you should be able to determine whether an instrument is in equilibrium (consolidation) or out of equilibrium (trending). Written in a straightforward and accessible style, Trading with Ichimoku Clouds offers a solid foundation in this discipline as well as its technical strategies. It shows you how to create and implement a trading plan based on this approach that can easily be tailored to your trading style. * First available U.S. publication on this hot trading trend * Reveals how Ichimoku Clouds work in both bullish and bearish markets * Highlights how these strategies can easily be adopted for stocks, futures, bonds, and other vehicles * Works with all timeframes and all tradable instruments Filled with in-depth insights and expert advice, Trading with Ichimoku Clouds will help you implement a proven strategy designed to capture trends that maximize profits and minimize losses. Furthermore, the user will be taken step by step through the entire decision-making process of trading an instrument for two years (back test).

Leseprobe

Table of Contents

Title Page

Copyright Page

Dedication

Introduction

BACKGROUND

COMPONENTS OF A TRADING SYSTEM

CHAPTER 1 - Ichimoku Components

TENKAN SEN

KIJUN SEN

CHIKOU SPAN

KUMO CLOUD COMPONENTS

SENKOU SPAN A

SENKOU SPAN B

KUMO CLOUD

CHAPTER 2 - Ichimoku Trading Plan

COMPONENTS

STRATEGY DESCRIPTION

CHAPTER 3 - lchimoku Backtesting

BACKTESTING

EURUSD-A TWO-YEAR BACKTEST

SUMMARY—TWO YEARS OF BACKTESTING

CHAPTER 4 - Post-Analysis

EXAMINIXG THE BACKTEST RESULTS

OPTIMIZE TRADING PLAN

CHAPTER 5 - Ichimohu Strategies

IDEAL ICHIMOKU STRATEGY

CHAPTER 6 - Ichimoku Time Elements

ICHIMOKU TIME ELEMENTS

CHAPTER 7 - Applied Trader Psychology

IS IT AS EASY AS JUST BEING TAUGHT A NEW SYSTEM?

THE PROBLEM WE HAVE WITH GETTING IN OUR OWN WAY

IS THERE A CONSPIRACY AGAINST THE SMALL TRADER?

TRADERS MYTH-SMART PEOPLE MAKE THE BEST TRADERS

LOSING TRADES ARE ACCEPTABLE

A SUCCESSFUL SYSTEM WILL FORTIFY YOUR CONVICTIONS

SELF-SABOTAGE AND HOW IT APPLIES TO YOUR TRADING

IN SUMMARY—TRADER PSYCHOLOGY OVERALL

CHAPTER 8 - Day Trading with Ichimoku

CONSEQUENCES OF TRADING WITHOUT A TRADING PLAN

TRADING PLAN

BACKTESTING

CONCLUSION

CHAPTER 9 - Conclusion

Ichimoku Analysis Sheet

Bibliography

About the Author

Index

Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional 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.WileyFinance.com.

Copyright © 2010 by E.I.I. Capital Inc. The right of Manesh Patel to be identified as the author has been asserted in accordance with the Copyright, Designs and Patents Act 1988.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada.

Charts used with permission of TradeStation, Inc.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, [phone], fax [phone], or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Library of Congress Cataloging-in-Publication Data:

Patel, Manesh.

Trading with Ichimoku clouds: the essential guide to Ichimoku Kinko Hyo technical analysis / Manesh Patel. p. cm.—(Wiley trading series)

Includes bibliographical references and index.

ISBN 978-0-470-60993-4 (cloth)

1. Investment analysis. 2. Stocks-Prices-Charts, diagrams, etc. I. Title.

HG4529.P38 2010

332.63’2042-dc22

2009052168

I am dedicating this book to my late fatherRamanlal K. Patel—a father who encouraged me tobe the best I can and to follow my dreams.If it were not for him, 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.

Introduction

BACKGROUND

“Japanese Candles” is a phrase that is well known among the trading community. 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 the next phrase of Japanese technical analysis to the Western world, “Ichimoku Kinko Hyo.” Ichimoku Kinko Hyo is a system that has been used successfully throughout Japan for years but never has progressed forward in the Western world. If a trader combines Japanese Candles with Ichimoku Kinko Hyo, 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 information regarding this topic is available 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 (VIX) (), which averaged a value of 10 to 12 for a number of years in the middle of this decade, and exceeded 50 for the first time during the collapse of the global financial markets. Why is this market different from any other historical period?