I'm having Difficulty deciphering!!

[llew]

thanks

Many thanks for your feedback Zenda,i'm very interested in learning more about this charting,do you use these charts for entry yourself,?i can see that they could be useful for observing possible swing trade entries.
Llew

 

[Zenda]

Looking !!

Many thanks for your feedback Zenda,i'm very interested in learning more about this charting,do you use these charts for entry yourself,?i can see that they could be useful for observing possible swing trade entries.
Llew

Taking a keener interest in it now - I don't actually use it for decisions - I'm using it exclusivly on Forex - for longer periods as a guide - It's is included in the software I use- hope that helps.

 

[Grant]

Ichimoku

1) Tenkan-Sen = Conversion Line = (Highest High + Lowest Low) / 2, for the past 9 periods

2) Kijun-Sen = Base Line = (Highest High + Lowest Low) / 2, for the past 26 periods

3) Chikou Span = Lagging Span = Today's closing price plotted 26 periods behind

4) Senkou Span A = Leading Span A = (Tenkan-Sen + Kijun-Sen) / 2, plotted 26 periods ahead

5) Senkou Span B = Leading Span B = (Highest High + Lowest Low) / 2, for the past 52 periods, plotted 26 periods ahead


When these indicators were created back in the 1930s, a trading week was 6 days long.
9 periods or days = one and half week

26 periods = one month

52 periods = two months

Now that the trading week is 5 days, one may want to modify the parameters to the following:

7 or 8 periods or days = one and half week

22 periods = one month

44 periods = two months

Is there an underlying rationale for 1) - 5) or are they based on a mystical aspect of the Emperor's omniscience?

Isn't fx trading for 6 days - start in Australasia Sunday night, end Tokyo Friday night?

If a trading week is 5 or 6 days and all days are of 8 hours duration (as in the above example), then the basic trading unit for forex will be 3 times this as trading is on a 24-hour basis.

As there is no break in trading from Sunday to Friday the basic unit of 1 (ie 6 trading days) mutilpied by 9 periods, for eg, is actually 54 days.

Did they use Gregorian, Julian or Walt Disney calendar?

 

[Zenda]

Nice post - I wish I knew the answer !!

 

[Grant]

Ta

Nice post - I wish I knew the answer !!

On a serious note (oh, dear). This is the problem I have with TA. Rarely, if at all, do I find any justification for a particular indicator. Indeed, I suspect many are the result of an imagination relieved of any intellectual baggage.

Of course, this view puts me in a minority, and I accept there are many who use TA successfully. The problem is, an unquestioning acceptance is an anathema and potentially disastrous for the newcomer whose sole criteria seems to be aesthetic - "it looks good".

There is a dilemma. By way of an analogy, is it necessary to understand car mechanics in order to drive? Of course not. However, a greater understanding identifies capabilities and limits, ie what can and can't be achieved.

 

[Zenda]

One of the worlds best traders uses only Volume and chart patterns - Dan Zanger - No indicators - In my experience indicators are usefull when coupled with years of experience - or when you set trading signal alerts, for example on moving average crossovers insomuch that they are used to "Alert" you to a situation only - So bells and whistles blow and ring to attract your attention.
I personally use half a dozen only - the ones which appear in most basic chart packages like TA on Yahoo etc. However for every new indicator there is a new book and CD somehere in the wings.
Get involved in relying on indicators moves you into the - seeking the perfect system gang - you want to know what matters in trading stocks - its volume! volume! volume!
Volume is used as corborative evidence
Trend up - Vol up - likely to contine
Trend up Vol down - likely to reverse
Reverse for Bears
Sideways - go get a sandwich and wait for a breakout - usually same direction as entry - this advanced trading lesson is designed for those who understand basic market reactions - Go for it!

 

[Grant]

Zenda,

I agree with you here. Something which may be of interest to you with a 30-day free trial: www.marketdelta.com

Especially look at the software components on the left of their page. Download their white paper from
www.marketdelta.com/links.aspx

I'll test this when I can sort out a decent feed (assuming compatibility). The one I really want (from a German company) won't load properly.

Good luck

 

[Zenda]

Thanks Gary that took a couple of hours up I think its VG for a scalper - certainly different - got a lot to merit it. I like the concept immensly - can you keep me in touch with your progress when you sort the data feed - the data is the key - Cheers -Z