Education

Ichimoku Cloud Beginner Memo Sheet

Updated

As a beginner trader i made this ichimoku memo sheet for myself and i figured i might as well publish it, who knows it might help another beginner :)
Please note it is a basic memo as i really want to learn to keep things simple.

If anyone notices any mistakes, please make note, it would be very helpful !

Thank you

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Please note this is a beginner memo, to keep you safe.
Also remember to use more than 1 indicator to decide whether or not you want to make a trade !

Goodnight

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Note to myself (and you) regarding the cloud lines ( Senkou A + B) :

The lines themselves aren't really important, the spacing between them is.
It's the size of the clouds ( spacing between 2 Senkou's ) that show us the intensity behind the move. So the bigger the cloud, the more likely the trade will go in the desired direction.

For example : Big green cloud = likely for longs to work out well.

The Chikhou, as a confirmator can help you indicate on when to close a trade.
For example : when you've entered a long position above the clouds, your first safest exit could be the moment the Chikhou touches the price.
A little more risky exit would be a little further away, when the Tenkan Sen and the Kijun Sen cross again ( Tenkan under Kijun that is ).

Also, don't do this on 5m or 15m charts, start on the 4H for example ( clearer view on signals )

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One more comment should complete this beginner memo.
About the first safest exit in a trade : ofcourse you can't predict when the Chikhou is going to hit the price since this is a lagging indicator.
So, what you want to do is decide where you want to enter , set your SL according to your entry and RR management , and calculate your TP based on those 2 numbers.

I would recommend using this strategy in combination with the RSI and BB bands. The bands could also be a good indicator on when to close a trade for example, in combi with the Chikhou movements.

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Extra personal esthetical remark : i've changed the color of my Chikhou because sometimes it might get confusing at the beginning. In the standard cloud setting, both the Chikhou and the Senkou Span A are green, so i changed my personal Chikhou to white, just to get a clearer view in some parts of the chart.

Extra sidenote : this is one of my favorite indicators so far since we own the best cat in the world and for 10 years now his name is Chicko :)

Happy trading everyone, on to the next memo !

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I could make another extra sidenote about the timeframes to be used in this strategy.
As stated before you should'nt be using this strategy on like 5m or 45 min charts since you won't get clear signals. You should start at 4H or daily charts since this strategy seems best to be used for overnight trades, buy today/check result tomorrow.

And i can't help but add 1 more thing about the cloud rules overruling the sen rules : ofcourse at a given point there will be situations where you can go long when below the clouds. Today for example , as mentioned somewhere in the comments, i broke my own rule by longing into LTC when below the clouds. Why? The ONLY reason i broke my own rule is this : at the moment of the trade LTC was around it's all time low vs BTC. Also, i don't consider LTC a shitcoin, we are in altseason and LTC is yet to have his move. So under these EXCEPTIONAL conditions, i've put the sen rules over the cloud rules. I also did this with a small bag since this strategy is here to reduce risk!

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So for those of you who want to stay as safe as possible :
just use the basic rules, basic settings, look for a good position and take profits using fib retracements during longs and with the fib extensions during shorts.

And now, finaly, i think that's about it ;)

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Dear dear TV users :

Please allow me to thank everyone for their time they took to read through this post, for the likes, the comments.. it's been great !

So far i've managed to thank everyone personaly but i don't know how long i'm going to be able to keep up with that , my beginning trading life might end because of me thanking everyone :p :p

So, right here, right now : THANKS EVERYBODY !!!

And ofcourse, i'll do my best to keep answering any questions. Make sure, after reading this post you do some additional research yourself ! There's no disease you can get from absorbing too much info ;)

Happy trading folks, and... stay safe !!!

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To get a clearer view on the components :

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Example LONG trade :

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Example SHORT trade :

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Perfect "No Lambo for you" example :

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Rare example of where we could brake the rules :

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Rare example of where we could brake the rules PART 2 :

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Breaking the rules : FINAL PART

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For those of you who can't get enough of the clouds or those of you who already want to step up the ladder I would recommend Chris Capre's YT vids about Ichimoku Clouds. He is the only known American or for that matter anyone outside of Japan that has copies of the original books by the inventor of the Ichimoku Cloud. Chris shows you some advanced concepts most people have never heard of like Wave Theory.

Sounds interesting ! I'm diving in !

Good luck and have fun !

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Above we can find a general example of a long trade, i'll now add one with some more details :

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To avoid confusion : in this last more detailed LONG example, the color of the Chikou is white ( i explained why i changed it from green to white in the memo description somewhere )

ShotGunJoe83

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