The Ichimoku Kinko Hyo can be traded in two ways: trend recognition and reversal recognition

Trend recognition goes without saying

it is a cloud

You can recognize a trend by the switching up and down of this cloud

Also, by changing parameters

you can have a technical display that is “optimized for you”

People often talk about optimization

but that optimization does not have to be for the market

The parameters to optimize are, after all, for your true self

Otherwise they won’t be usable in the market

That said,

technical analysis is ultimately post-hoc theory

My principle is that “everything is curve-fitted”

That applies to any logic

Survival in automated trading still relies on MA crossovers

to form a stable retracement logic

Retracement logic may not look stable

But in terms of the relationship between loss and profit, what survives in the end is such retracement logic

And if you try to grow with a long-winded logic

you must consider the maximum drawdown, making it a rather lengthy task

Even with curve fitting present

what we should handle is the technicals that are optimized for our own nature

that is all there is to genuine technical market analysis

And with that, cloud display can be used for trend recognition

People say cloud touch implies trend following

but it often returns similarly to MA touch

Because fundamentally it isn’t driven by technicals

In other words

Even if the trend market moved back, it doesn’t re-trend

That is the situation

There is no real fact that "it is driven by technicals"

What moves is more like the number of positions

Because at the end, the visuals of traditional technical analysis

and the general technical information you see in textbooks

become entirely ineffective in a market that becomes null and void

In other words

If you think it moved according to technicals

it did not move according to technicals

it becomes a market that disregards technicals

From the start, the concept of technical analysis doesn’t exist here

It’s better to feel that “technical analysis simply helps you grasp the market clearly”

Otherwise you’ll become a technical supremacy

Ultimately, the market is fundamentals-first

If that’s the case, technical analysis must be used in your own authentic way

Base line and conversion line

I used these two because they were more useful than MA crossovers

Also,

the combination of the base line and conversion line tends to pick up less noise

That is, it has a characteristic that doesn’t mesh with noise wavelengths

It helps reduce market losses

This pairs well with simple zero-line strategies like MACD

In MACD’s zero-line-only strategy,

since you don’t look at anything outside the zero-line, you avoid getting caught in market noise

Using the base line and conversion line together makes it easier to grasp

Even after explaining all this, ultimately there is a trend

For everyone to chase a truly unpredictable genuine trend market

don’t engage in technical analyses that are designed to dodge such noise and curve-fitting

This is the purpose of the Ichimoku Kinko Hyo base line and conversion line

Clouds, likewise, become easier to handle by changing parameters

In bounce recognition, the trailing span can be used

This is, well, a form of support and resistance recognition

But don’t rely on the idea of support and resistance too much

Focus on exchanges of waves and patterns

Think in fundamental terms rather than following shapes

Otherwise you’ll trade with a mindset of technical supremacy

You must grasp the market in a fundamental sense to survive

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