Ichimoku Kinko Hyo is not profitable! Only losses! The reason is that the reaction is slow

From a formal usage standpoint, it is simply too slow

Because the Ichimoku Kinko Hyo uses the entire set of technical analyses,

it ends up responding to the market far too slowly

Even though the trend has long since ended, it may say “the trend just formed now”

But since the trend has already ended, it results in “an immediate full reversal”

Therefore, as a countermeasure in such cases

In particular, people who teach Ichimoku Kinko Hyo tend to advocate using counter-indicators

But if you support “treating this technical as a trend-following tool,”

trading it with a counter-indicator is quite contradictory

Moreover, if it only functions as a trend-following signal when trading with a counter-indicator,

you’ll be late to react, and even when you enter as a signal

there can be misleads later, making it hard to recover

I am against using Ichimoku Kinko Hyo as a contrarian tool!

However, this is simply how it is used in textbooks

There are parts where it can be effectively used as a contrarian tool

and places to test it with Ichimoku Kinko Hyo

After the main cloud covers the chart

Trend redraws (flags)

Displaying the opposite side of the baseline and conversion line with a channel line to contrarian-trade

requires a bit of ingenuity

What this ingenuity can lead to

is a way of using technical analysis that conveys a trader’s expectations

Using such methods makes contrarian trading with Ichimoku Kinko Hyo effective

However, if you analyze using all of Ichimoku Kinko Hyo

you will be absolutely delayed

and the impression will shift to “Ichimoku Kinko Hyo cannot be used! It doesn’t make money!”

Because of this

a simple approach is that MA crossovers for trend-following are enough

In the case of Ichimoku Kinko Hyo

even a cross of the Base Line and Conversion Line is displayed slower than MA crossovers

Therefore in range markets you will incur larger drawdowns from MA cross trend-following

leading to poorer performance than simple technicals

This is precisely why

When properly handling Ichimoku Kinko Hyo

you must also pursue a technical approach that can track traders’ anticipated patterns

and you must proactively modify and refine it yourself, or you won’t be able to increase it

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