Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Ichimoku Cloud Forecasting for-High Probability Trades

1 min read


 
Ichimoku forecast: Ichimoku Kinko Hyo is Japanese for “one glance cloud chart.” It consists of five lines called Tenkan-sen, Kijun-sen (sen is Japanese for line), Senkou Span A, Senkou Span B and Chinkou Span. The calculation uses four different time periods which we call termT, termK, termS and termC. The Ichimoku Kinko Hyo is graphed over the closing price line. The space between the Senkou spans is called the Cloud, and is usually graphed in a hatched pattern.

The word Ichimoku can be translated to mean “a glance” or “one look”. Kinko translates into “equilibrium” or “balance”, with respect to price and time, and Hyo is the Japanese word for “chart”. Thus, Ichimoku Kinko Hyo simply means “a glance at an equilibrium chart”, providing a panoramic view of where prices are likely to go and the position one should undertake.


The Ichimoku Kinko Hyo or equilibrium chart isolates higher probability trades in the forex market. It is new to the mainstream, but has been rising incrementally in popularity among novice and experienced traders. More known for its applications in the futures and equities forums, the Ichimoku displays a clearer picture because it shows more data points, which provide a more reliable price action. The application offers multiple tests and combines three indicators into one chart, allowing the trader to make the most informed decision

Above Chart Shows the High Probablity trades from the Nifty weekly charts…

Rules are simple
1)Buy if Candle closes above the cloud.
2)Sell if Candle closes below the cloud


Sample Weekly Charts from Ratnamani metals with ICIMOKU Indicator showing Breakout


Check out the high probability trade in Aban
Daily Chart of Aban – Breakout above the cloud
Some of the Stock that shows ICIMOKU Cloud Breakout for High Probaility Trades

Related Links:

1 http://www.gaincapital.com/files/sfo_dolan_200803.pdf

2) http://www.fxwords.com/u/ichimoku-cloud.html



Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Nifty and BankNifty 90 min charts update for 16th…

Nifty turns to sell mode on 90 min charts with trailing resistance coming near to the 5500. Similarly Bank Nifty too in sell mode...
Rajandran R
10 sec read

Nifty and BankNifty 90 min charts update for 15th…

Nifty turns to buy mode with cloud supports coming near to 5460-5470 zone. And Bank Nifty still in sell mode with resistance near 10900....
Rajandran R
8 sec read

Nifty Week End Review

Nifty week end review on daily and 90 min timeframe and Nifty Option Details
Rajandran R
32 sec read

12 Replies to “Ichimoku Cloud Forecasting for-High Probability Trades”

  1. dear rajandran,can v buy the below mentioned stocks fr possible gains of 30 percent,irrespective of the market movements?coz u hv posted to short nifty futures with a stoploss of 4621.if yes,then which ones can turn out to b the better picks.plz reply. thnx fr ur services in the past,i hv benefitted really.rashmi

  2. Yes rashmi,As the risk level is very low in these stock when compared to Nifty.

  3. Dear Rajandran,I am amazed by the diversity and depth of knowledge you possess. Thanks for bringing out these pearls.Best regards.rm

  4. Always wondering about ur deep knowledge in market.Thanking for posting different kind of chart methods.

  5. dear rajandran,my thanks to you,holding zicom96,aries53,northgate47,ingvysya169.

  6. Hi RajandranI have 200 shares of Suzlon at Rs113 should i hold it for sometime or go for selling?Also what about the future of DCHL? I have 200 shares of DCHL also at Rs.78. Should i hold for some time?Also i'll be thankful if you can shed some light on the future of TEMPTATION FOODS? I have 300 shares of this stock at Rs40 and at present this is trading in lower circuit and cmp is Rs46 i think.Please suggest some good shares also.Thanks a lot in advance

  7. Hi Rajandran,I have a query for u.Where can i find accurate data during mkt hours or EOD for options greeks related to FNO stocks traded in the Indian stock market ?Thank you.Have a nice day !

  8. Dear author, the close of a candle above or below the cloud is not the only signal. There is also the Kijn Sen Cross, and the Senko Span Cross, and the Chiko Span Cross. I can not believe you are using three other indicators under your ichimoku chart. The Ichimoku chart is an integrated charting system, and it does need any other indicators.

  9. @Adam

    Yeah man I know that But still wanna code the rule simple.
    Kijn Sen Cross, and the Senko Span Cross, and the Chiko Span Cross could produce more noise to the system

  10. cross over of tinkensen and kijun sen is a powerfull indicater as i tested in most of the charts.one draw back of chartnexus software is the colour of the cloud. if it was like metastock plug in problem is solved for me as i have chartnexus free version.
    above chart is from chartnexus

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More