5 Principles of Ichimoku

I can’t remember where I have gotten these Ichimoku notes.

It was in my little black book for trading. I will be glad to acknowledge the source if anyone can point me in the right direction.

1. If price traverse the Kijun sen, this gives the indication of a directional change.

Notes:

Kijun sen is the trendline in Ichimoku. A price that cuts through the trendline will indicate a possible change in trend.

 

2. If price travel too far from Kijun sen

- suggest overbought or oversold

- look for consolidation and/or correction

 

3. If the Chikou Span traverses price, this is an advance indication that direction may be changing

- start looking for the key level

Notes:

Chikou Span ‘slamming’ into the price levels suggest resistance or support.

Observe the price action to get a feel if it will break.

 

4. If price travel too far from Kijun sen on the chart

- look at the chart directly in front of it (chart of different timeframe)

- have a stop in place to take profit

 

5. A realistic stop is determined by placing the stop at a level where if traversed, it has neglected the prevailing sentiment.