The Ichimoku Kinko Hyo is one of those indicators you should have at least an understanding of because of its originality compared to Western technical indicators. It is advisable to use this tool in the long-term on daily and weekly charts, where it best displays a panoramic view of what is happening with a certain currency pair.
One great thing about the Ichimoku Clouds, for instance, is that it doesn't need any filters as it has them already incorporated.
Another of its particularities is the clouds formed by the two moving averages projected 26 periods ahead in time: the Senkou Span A and Senkou Span B. This is a unique feature which most indicators don't have, the fact that they appear on the right side of the chart always several periods ahead of price. The clouds work as excellent dynamic support and resistance levels, especially in Yen pairs. The reason for this is understandable since the origin of the indicator is Japanese.
A third singularity of the indicator is the Chikou Span, a line which tracks the price movement 26 time periods back on the chart, providing – together with the clouds - a lecture on how current price action will act in reaction to its recent memory. That's awesome, isn't it?
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REPORT: Understanding and Using Ichimoku - Littlefish FX
REPORT: Currency Trading with Ichimoku Kinkou-Hyo - The Forex Journal
VIDEO: An introduction to Ichimoku Cloud Charting - Nicole Elliott, CFTe
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Editors’ Picks
EUR/USD declines below 1.0700 as USD recovery continues
EUR/USD lost its traction and declined below 1.0700 after spending the first half of the day in a tight channel. The US Dollar extends its recovery following the strong Unit Labor Costs data and weighs on the pair ahead of Friday's jobs report.
GBP/USD fluctuates above 1.2500 following Wednesday's rebound
GBP/USD stays in a consolidation phase slightly above 1.2500 on Thursday after closing in the green on Wednesday. A mixed market mood caps the GBP/USD upside after Unit Labor Costs and weekly Jobless Claims data from the US.
Gold retreats to $2,300 despite falling US yields
Gold stays under bearish pressure and trades deep in negative territory at around $2,300 on Thursday. The benchmark 10-year US Treasury bond edges lower following the Fed's policy decisions but XAU/USD struggles to find a foothold.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.
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