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In the example below we can see an ideal ’3′ point set up in a 123 type formation.

When we look for the ’3′ of a 123 pattern to form, the safest entry is on a candle pattern off  [The forex alerts and charts are protected for Trader Membership members and above. Join us to see all content]

Chikou Span (also known as the “lagging span”) is simply the price plot stepped back by a certain number of periods behind the latest closing price. Therefore 26 days, 26 x 4H, 26 x 5m, etc. depending on which time frame you are using. You can actually achieve the same result by plotting a 1 period simple moving average on the chart and ‘shifting’ it back minus 26 (-26). The number of periods used to lag the Chikou span is customizable on most  platforms and some use a slightly different number by default.

Chikou therefore ‘plots’ the exact closing price 26 periods back, and it is [The forex alerts and charts are protected for Trader Membership members and above. Join us to see all content]

We can effectively use the combination of candle patterns and Ichimoku to give us superior advantage and alert us to an upcoming move.

Below is a chart showing an alert  mentioned 2/6 on the UsdCad where members could use the combination of candle pattern and Ichimoku to warn of pending danger and for a low risk idea. The chart is fairly explanatory but lets run through the scenario.

Chikou Zone overhead (red lines) for possible test by the bulls, who may try to attempt a breakout. (First line has been touched several times).

Bulls try to push the action over the line but it will not hold – bears are too strong and a [The forex alerts and charts are protected for Trader Membership members and above. Join us to see all content]

A member asked for more clarification regarding the value and use of Chikou in confirming Tenkan Sen/Kijun Sen crossovers. Here’s a chart that should speak a thousand words. If there is anything you so not understand please ask.

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Expanding on the 123 approach I mentioned in an earlier post I show below some suggested points for scaling in entries, and the suggested points for more confirmed set-ups.

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Using Ichimoku to assist with potential entry points.

In the chart below we see all Ichimoku elements are bullish.

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In forex trading, the two most important indicators to use together are candlesticks and ichimoku. Forex traders can make more accurate decisions, and are therefore more profitable, when they learn to read these types of charts.

The light blue box indicates 26 trading periods and the dark blue 52 trading periods.

Set Up for Metatrader 4

Oanda

If this helps, here’s a snag of the Ichimoku chart and all the components as used in the video

Read more…

We’ll be sending the link via email for the ichimoku video tomorrow (January 5 New Zealand time, which might be January 4 in your time zone!), so this is your last day to join if you’d like it as it will only go to current members.
The video shows you how to read ichimoku charts so you can pick out bullish and bearish signals. We also give you the exact settings so that you can create ichimoku charts that look like ours.

Note: there will not be a link to the video on the site – it’s for members only, so you’ll receive the link to the email address you signed up with.