A typical textbook “losing trade strategy” using the Ichimoku Kinko Hyo

Ichimoku Kinko Hyo uses parts carefully to suit the market and to exert its effect.

However, if you make it a textbook, all-encompassing trading strategy, you will lose.

Or more accurately, to say you will become likely to lose.

Ichimoku Kinko Hyo is a well-known trend-following strategy,

and while the slogan says “it can predict the future,”

there is no way it can actually predict the future.

That is, it can only predict in a forward-looking sense,

and the “absolute prediction” that people place in Ichimoku Kinko Hyo

is not possible.

I wouldn’t say it’s completely impossible,

but the lighter expectation is greater, I think.

There are such extreme, almost-holy ideas,

and I believe that is why Ichimoku Kinko Hyo has survived as a technical method this long.

In practice, its usability is surpassed by

support/resistance and envelopes.

Because support/resistance involves identifying the market with support and resistance lines,

it is less prone to mechanical decisions like those of technical analysis.

(People who used technical analysis from the beginning sometimes interpret the support/resistance lines as having already broken,

which they often misunderstand by focusing only on the lines.)

You can use it considering the market’s ambiguity.

Envelopes are the same;

envelopes consist of just two lines.

By using the center line of the market as the axis for the parameter values,

you can judge the market,

making it more practical in actual markets.

In the case of Ichimoku Kinko Hyo,

if you only use the textbook way,

you will also be caught in simple market tricks.

This is because Ichimoku Kinko Hyo has become an absolute technical analysis.

Because it has become an absolute mechanical analysis,

you will fall for such simple deceits.

To avoid such simple deceits, only discretion can help.

In markets with such deceits, “analytical, fast technical analysis minimizes losses.”

Simply put, simpler indicators than Ichimoku Kinko Hyo minimize losses.

These side effects and market misfunctions are more likely to occur,

so it is difficult to discuss the market without acknowledging them.

To do something about them,

learn the market patterns thoroughly and use them.

Ichimoku Kinko Hyo

the market patterns

by using each of the individual technicals that Ichimoku Kinko Hyo contains

In other words, consider Ichimoku Kinko Hyo as a fusion technical analysis that combines

MACD, RSI, MA, and other elements.

In reality, it is not just a simple indicator;

actually, think of it as “a technical analysis that is a fusion of multiple technical tools.”

If you think this way, the choice to “turn off the technicals to fit the market” becomes possible.

As a template file,

cloud only

baseline only

and other various simple indicators can be saved,

and load templates according to the market conditions,

and use them in market analysis to differentiate usage.

Ichimoku Kinko Hyo becomes quite easy to handle.

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