technical analyst - learning ichimoku kinko hyo

Ichimoku Kinko Hyo indicator (or call it Ichimoku) is one of complete indicator that can be used in trading currencies, stocks, futures, commodities and even mutual funds. This indicator was first introduced by Hosada around the year 1970. This indicator can be said to complete and the department because of this indicator can be determined when both incoming and outgoing signals, point support and Resistance as well as forecast future trends.
Tenkan Sen: (Highest High + Lowest Low) / 2, with periods of standard 9 Kijun Sen: (Highest High + Lowest Low) / 2 with a period of 26 standard Chikou Span: The closing price 26 periods is shifted backward Senkou Span A: (Tenkan Mon + Kijun cents) / 2, then moved forward by 26 periods Senkou Span B: (Highest High + Lower Low) / 2, of 52 last candle and moved forward as much as 26 periods.
From the formulation of Ichimoku chart compilers actually almost similar to the indicators Moving Average (MA) with base period 9,26,52. The difference with the Supreme Court, on Ichimoku calculations based on the highest price (highest high) and lowest price (lowest low), so sensitivity is higher than MA which uses calculations based on the closing price.
Characteristic of the Ichimoku indicators compared with other indicators is the presence of Cloud (Kumo). How to read that is, if the price is above the Kumo, the trend that lasted prices are rising. Senkou Span A is a price that is below its support point. However, if the price is under the Kumo, then the price trend is in the Bearish and Senkou Span B is a price above the resistance point.
If the price is within the Kumo, then the prices entered a period of struggling. Trending up or down can not be determined or in other words are still in a period of sideways.
One more uniqueness Kumo Ichimoku is displayed next to pass the final price. Thus the user can predict the area Ichimoku support and Resistance which will occur even when the price has not been established. As a result, a trader can predict the form of graphs share some period into the future.
How to read signal entry and exit is basically the same with Moving Average indicator. Tenkan Sen is the shortest period (9) compared with Kijun Mon with a longer period (26). Determination of the Golden Cross and Death Cross as appropriate use of Moving Average.
Chikou Span which is the closing price 26 periods back, used to provide confirmation of the current trend. When chikou span above the price, it can be said strong uptrend tend. Vice versa, if chikou span is below the price can be said to tend to a strong downward trend.
Similarities Ichimoku with moving average indicator is both more effectively utilized in a more swing trading or long trade trade. Because it is slow, less so suitable for use in intraday trading.
If you want to try Ichimoku Kinko Hyo indicator is free to visit the link www.ichimokutrader.com. Ichimoku can be as a complement to link charts in stock