Ichimoku Kinko Hyo Indicator
When we want to describe Ichimoku Kinko Hyo it is necessary to describe it part by part.Otherwise it is slightly difficult to easy understand.
For our easy understanding we can say this indicator have 4 section
1.Cloud
This cloud contain two line
#Senkou span A (Up Komu) and
# Senkou Span B(Down Komu)
2.Lagging Span(Chikou Span)
3.Conversion Line(Tenkan Sen)
4.Base Line(Kijun Sen)
Ichimoku Cloud
In this picture we show only Ichimoku cloud and another section hide for better explanation.Ichimoku cloud has two parts like span A and Span B.
When span A(Green colour) is up and Span B (red colour) is down that means market is downtrend.
Here the difference between the current market candle and the last point of cloud is always 26 candle.
In this picture current trend is up.Changed on 01/01/2021(always shown 26 candle advance).
In this picture indicated straight line acted as a Resistance Line.
When we found that kind of straight line(either senku span A or B) that will act as support or resistance.
Here it is resistance because now market is below the cloud. Forehead of cloud is downtrend.
If market touched that line and retest with bearish candle that will be a another opportunity of short entry.
When market(candle ) upside of the cloud it means it is uptrend market.
When candle below the cloud it means the downtrend market.
When candle inside the cloud it means market is ranging.In the ranging market indicator basis trading is advisable.
No entry because market is now inside the cloud.
It is one perfect Buy entry point.
Because
# Tenkan sen going to up by crossing the Kijun sen.
#Up kumo(Senkou Span A) is upside and Senkou Span B is downside.For that reason Cloud is uptrend.
#Chikou span was on the upside of the market.
#Candle was not inside the cloud and situated on the upside of the cloud.
It is a sell signal because Kijun sen gone to up by crossing the Tenkan sen.
But Unfortunately it is invalid entry point for sell.
Because
#Cloud is uptrend that means Span A is up and Span B is down.
#Candle is upside of the cloud.
#Chikou Span is upside of the candle.
Another one invalid sell signal.
#Tenkan sen gone to down by crossed Kijun sen.That means it is sell or down signal.
#Chikou Span also situated under the market or candle. It also sell confirmation .
But
In the cloud we seen Span A is upside and Span B is Downside. That means market is uptrend.
Another one reason Candle is upside from the cloud. It also another indication of uptrend market.
For this kind of mismatching this sell entry signal is not valid.
