No worries. Ichimuko analysis is a system of high-low averages (similar to moving averages) which generate signals to enter and exit trades and tell you when to stay on the sidelines. The signals help identify potential longer term trends which will appear on weekly and monthly charts but can also be used with success for shorter time periods.
The basic formations are the clouds which are formed by spans and define the cloud boundaries with the leading span (faster span) and a slow span, both plotted 26 periods into the future . Then you have three other spans (light blue, brown and green on my chart) which are just spans of high-low averages plotted over different periods. The light blue line (span) has a smaller period of 9 (normally set at 9 days on a daily chart) so follows the price action more closely, the brown line (span) has a longer period so lags the price action (doesn't respond as fast). The third non-cloud span (green on my chart) is just the price action plotted 26 days in the past (on a daily chart).
Now you can forget about all of the above because it doesn't matter as the system is just a simple set of rules for identifying the entry and exit signals.
For a long entry signal you just need a few simple conditions to be met. The first is the price action needs to be above the cloud, the second is that the short period span (light blue) has to cross over above the longer period span (brown line) and that cross must happen above the cloud (inside or below the cloud is not valid for a long entry).......and there is one other condition that also needs to be satisfied for a valid long entry, the trailing span (green line) also needs to be above the cloud. You can use the reverse of all these conditions to determine valid short entries and exits as well.
The valid long entry on the AMI weekly chart occurred on the week starting 11/9/2017 (see below).
You don't see IC charts this sexy very often. Notice that the weekly close has never penetrated below the brown line in all this time. That would be the signal to exit the long position that was triggered in Sept 2017.
I've also plotted the 200 day EMA the chart (dark blue). You can see that it has generally stayed below the cloud (green) and the price action is diverging away from the 200 day EMA average and the cloud, perfect chart. I wish I had have identified it earlier. The strength of the chart was already very evident when I first charted it in August last year, see my post from then. Esh
https://hotcopper.com.au/threads/ami-chart.4360932/?post_id=34946667#.XJtO0Bo_WhA
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Last
15.5¢ |
Change
0.005(3.33%) |
Mkt cap ! $261.9M |
Open | High | Low | Value | Volume |
15.5¢ | 15.5¢ | 15.0¢ | $381.3K | 2.476M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
8 | 199540 | 15.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
15.5¢ | 897219 | 13 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
8 | 199540 | 0.150 |
10 | 924079 | 0.145 |
16 | 1562498 | 0.140 |
12 | 947901 | 0.135 |
11 | 975868 | 0.130 |
Price($) | Vol. | No. |
---|---|---|
0.155 | 897219 | 13 |
0.160 | 2312379 | 18 |
0.165 | 447860 | 7 |
0.170 | 286461 | 7 |
0.175 | 407327 | 7 |
Last trade - 16.10pm 29/03/2024 (20 minute delay) ? |
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Last
15.3¢ |
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Change
0.005 ( 0.07 %) |
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Open | High | Low | Volume | ||
15.3¢ | 15.5¢ | 15.0¢ | 473581 | ||
Last updated 15.59pm 29/03/2024 ? |
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