BITCOIN ICHIMOKU ---- GO WITH THE FLOW
Updated
Heres an Ichimoku summary for those that don't know (analysis at the bottom). I am not an expert, I'm simply showing you what I have learned. Feel free to call me out on my mistakes, I love it.
ICHIMOKU SUMMARY:
5 Main things you need to know for Ichimoku:
1--- Where is price in relation to the cloud? Above, below or inside?
2--- The cloud -- Cloud will either be red ( bearish ) or green ( bullish ). If price is over the cloud its a bullish signal, and bearish if under; If price is inside the cloud regardless of color, it signals
indecision (danger zone). Flat spots and Cloud twists (point at which the cloud changes color) indicate high support/resistance zones. The cloud also reaches 30 periods
ahead of price and estimates where price could fall using calculations on previous trends.
3---The green MA (lagging span) -- lags 30 periods behind current price, this is useful to assess price movement over time.
4---The blue MA (conversion line) -- is a ~10 MA.
5---The red MA (base line) -- is a ~30 MA.
You can use the cross overs like a regular MA crossover; when the smaller MA crosses above the larger MA, its a bullish signal.
ANALYSIS:
Where is price? Inside the cloud (indecision) ----- BAD
What do the MAs look like? Currently still technically on a bullish MA crossover, but price has broken the blue and red MAs with strength. Lagging span is still barely above price. All MAs are also under the cloud. ---- BAD
What does the cloud look like? Cloud twist ahead at $6800 level and another flat spot at around $7100. This is our last strong support for a bounce. --- NEUTRAL
Where do I think price will go? Going by Ichimoku: DOWN. Going by hopes and dreams: Its GONNA MOON AFTER THE BOUNCE AT $6800 BABY (probably not).
Blue Horizontals = Bullish targets based on Ichimoku flat cloud spots
Red Horizontals = Bearish targets based on Ichimoku flat cloud spots
Purple Horizontals = Bearish targets based on Volume Profile .
ICHIMOKU SUMMARY:
5 Main things you need to know for Ichimoku:
1--- Where is price in relation to the cloud? Above, below or inside?
2--- The cloud -- Cloud will either be red ( bearish ) or green ( bullish ). If price is over the cloud its a bullish signal, and bearish if under; If price is inside the cloud regardless of color, it signals
indecision (danger zone). Flat spots and Cloud twists (point at which the cloud changes color) indicate high support/resistance zones. The cloud also reaches 30 periods
ahead of price and estimates where price could fall using calculations on previous trends.
3---The green MA (lagging span) -- lags 30 periods behind current price, this is useful to assess price movement over time.
4---The blue MA (conversion line) -- is a ~10 MA.
5---The red MA (base line) -- is a ~30 MA.
You can use the cross overs like a regular MA crossover; when the smaller MA crosses above the larger MA, its a bullish signal.
ANALYSIS:
Where is price? Inside the cloud (indecision) ----- BAD
What do the MAs look like? Currently still technically on a bullish MA crossover, but price has broken the blue and red MAs with strength. Lagging span is still barely above price. All MAs are also under the cloud. ---- BAD
What does the cloud look like? Cloud twist ahead at $6800 level and another flat spot at around $7100. This is our last strong support for a bounce. --- NEUTRAL
Where do I think price will go? Going by Ichimoku: DOWN. Going by hopes and dreams: Its GONNA MOON AFTER THE BOUNCE AT $6800 BABY (probably not).
Blue Horizontals = Bullish targets based on Ichimoku flat cloud spots
Red Horizontals = Bearish targets based on Ichimoku flat cloud spots
Purple Horizontals = Bearish targets based on Volume Profile .
Note
Wanted to add for the summary section: When the MAs are ALL above the cloud, including price it signals a healthy bull trend. The opposite is true when all of the MAs and price are below or inside.
Note
We bounced alittle and made a new higher high as of now. Stll clinging to the bottom of the cloud. Note
Zoomed out Note
higher low*Note
For those interested. This is a great reference for ichimoku; he breaks it down very well. medium.com/@CarpeNoctom/toshimokus-trading-tips-tricks-f0ff5cc38cc8
Note
Wanted to add another reference: This disproves the theory I had that the numbers were based on market trading days. Im always learning and reading. Wanted to share. 2ndskiesforex.com/trading-strategies/forex-strategies/ichimoku-number-theory-an-introduction/
Note
Wanted to update on my previous comment about Ichimoku NOT being based on Japanese trading days. After reading that authors content, he contradicted himself when he later explains the Kijun line is 26 days based off history of Japanese trading days. This is why you must always DYOR and never take anyones word. Review and read what their frame of thought and evidence is. Dont be swayed by any one theory or person.
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