Stocks and Forex Day Trading or Swing Trading Simplified using Advance Ichimoku Trading Strategies with Risk Control.

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Acknowledgments:

Credit to u/illuminates for introducing me to this idea, and for u/woodlyelf for the fresh set of rookie eyeballs before posting.
Goichi Hosoda for developing the Ichimoku trading strategy.
The Secret Mindset on Youtube for the video used for this reference.

Disclaimer
As with everything, this is for educational purposes only, and doesn't constitute actual advice in any way shape or form. It's simply another way to get information from all those colorful lines and bars.
If I've mis-stated anything here, the error is mine. This is only meant to be a written example of the video explanation for those who aren't visual/auditory learners.
If you're using TradingView, here's a tutorial for setting up the Ichimoku TA.

Parts of the Ichimoku graph

Before getting started, you should know:
Candlesticks - this strategy uses candlestick graphs instead of current price line to evaluate movement.

Conversion line (tenkan-sen)

video timestamp (0:48)
Very short-term indicator

Not used by itself to make decisions

It shows:

Mid-term price momentum
The mid-point price (price average) over the last nine periods (by default)
Area of minor support or resistance

An increasing conversion line (upward slope) indicates an upward trend. A decreasing conversion line (downward slope) indicates a downward trend.
If the market price is ABOVE the conversion line (price > conversion line), this indicates short-term upward momentum (mo' money). If the market price is BELOW the conversion line (price < conversion line), this indicates short-term downward momentum (no mo' money).

Baseline (aka 'confirmation line', or kijun-sen)

video timestamp (1:48)

Mid-term indicator

It shows:

Mid-term support and resistance
The mid-point of the high and low price (price average) over the last 26 periods

The baseline can be used to analyze price momentum by itself. Unless there is a very strong trend, the baseline often appears near the price, which makes it less useful for trend analysis.

Price > baseline = medium-term upward momentum
Price < baseline = medium-term downward momentum
Increasing slope of the baseline indicates an medium-term upward trend
Decreasing slope of the baseline indicates a medium term downward trend

Lagging Span (Chikou span)

video timestamp (2:48)

How is it made? Created by plotting closing prices 26 periods behind the latest closing price
What does it mean? Allows you to visualize the relationship between prior and current trends, and to spot potential trend reversals

How to use lagging span

If price < lagging span, there is strength in the price and it's moving higher
If price > lagging span, there is weakness in the price and it's moving lower

Lagging span signals

Lagging space is about to cross above the prior price line = bullish (going higher) confirmation sign
Lagging space is about to cross below the prior price line = bearish (going lower) confirmation sign

Tips for using lagging span

Trading signals based on lagging span are strongest when the line doesn't touch or cross any of the prior candles
Interaction with the past price line indicates a choppy or 'sideways' market
If the lagging line quickly drops into the past price line, the momentum might be spent already

The Kumo Cloud

video timestamp (4:09)

Formed from two lines, 'Leading span A (or 1)' and 'Leading span B (2)
Shows support and resistance levels that can be projected into the future
Shows an estimate of future movement, not just real-time movement
Is ONLY a model, and should not be taken as gospel
The thicker the cloud, the stronger support or resistance that's indicated by the color

Reading the Kumo Cloud

The longer the price action stays above/below the Kumo, the stronger the trend and the more support/resistance available
The further the price action is from the Kumo, the stronger the trend and more volatile the action
Avoid trading inside the Kumo, because the trend is undetermined, and the price may move up or down

If the cloud is green (trending up):

There is a strengthening upward trend (leading span A is rising, and is above leading span B)
If the price is above the Kumo, there is more buying opportunity

If the cloud is red (trending down):

There is a strengthening downward trend (leading span A is falling, and is below leading span B)
If the price is below the Kumo, there is less buying opportunity

Strategies for using Ichimoku

Conversion line/Baseline Crossover (Kumo filter)

video timestamp (6:06)

Conversion line crosses above baseline = buying signal
Conversion line crosses below baseline = selling (short) signal
A conversion line/baseline crossover in the direction of the overall trend is more powerful than one that goes against the trend
Trade the strong signals, and ignore the weak signals

But all signals are not created equal. This is where the cloud comes in.

Buy/Sell Signals using the Kumo filter

Weak sell signal

Conversion line crosses below baseline
Current price is still above Kumo cloud

Strong sell signal

Conversion line crosses below baseline
Current price falls below Kumo cloud

Weak buy signal

Conversion line crosses above baseline
Current price is below Kumo cloud

Strong buy signal

Conversion line crosses above baseline
Current price is above Kumo cloud

Cloud Crossover Strategy (lagging span filter)

video timestamp (7:28)
Remember that the lagging span is the closing price projected 26 days into the past, so we have a clear picture of today's market level relative to earlier prices.
Strong sell signal

The lagging span is below the price candles
There is a downside crossover (conversion line crosses below baseline)

Strong buy signal

The lagging span is above the price candles
There is an upside crossover (conversion line above baseline)

Remember that the Kumo cloud's leading span lines are projected 26 periods forward.

Cloud Strategy

video timestamp (8:18)
Strong buy

When leading span A of the Kumo crosses above leading span B, and price is above the Kumo
A weak buy signal is the same, but price is below the Kumo

Strong sell

When leading span A of the Kumo crosses below leading span B, and price is below the Kumo
A weak sell signal is the same, but price is above the Kumo

Kumo Cloud Breakout

video timestamp (9:13)

This signal occurs when the price cuts through the Kumo
Bullish (mo' money) = price enters the Kumo and breaks its upper barrier
Bearish (no mo' money) = price enters the Kumo and breaks its lower barrier

Reversal factors

Thickness of the Kumo when the price breaks the barrier
The amount of time the price has been to one side of the Kumo
How far price action moves before touching or breaking the Kumo
Time frame

Basically looking for what areas I need to reinforce my knowledge in first. I have basic knowledge of candles, Fib, and Supply and Demand. Wonder if I shoulder get better at those first or incorporate something I am missing.

Ichimoku is an indicator capable of defining support and resistance levels, identifying trend directions, measuring momentum and providing trading signals.

It is an indicator of Japanese origin that began to be developed in the 1930s by Goichi Hosoda . It will not be until the end of the 60s of the same century when the indicator actively sees the light, and, in the West, it will become popular at the end of the last century.
Although it is quite complex to study, it is very effective when it comes to investing due to the precision of the investment signals it offers. Today it is considered one of the best trading indicators and all professional platforms have it available.
Now let's find out in detail Ichimoku and how to use it to invest in the stock market.
Related: Top Stock Investment Newsletters

What is Ichimoku?

It is an indicator that is made up of five lines and a cloud. The lines have their names and functions defined:

Tenkan-Sen and Kijun-Sen are moving averages.
Senkou Span A and Senkou Span B are forward lines, in the style of Western trend lines.
Chikou Span , equals the current price drawn 26 periods ago

The cloud would occupy the space between the Senkou Span A and Senkou Span B lines. This indicator is preferably oriented towards bullish or bearish trend scenarios. Not so recommendable when there are no clear trends.
In any case, with sideways trends, Ichimoku can be used by using oscillators and working on smaller time frames: this allows you to spot possibilities of minor trends in the main sideways trend.
It is definitely a versatile indicator, capable of defining support and resistance levels. It can also identify trend directions and, while measuring momentum, provide trading signals.
https://preview.redd.it/zpwyux38s4w91.png?width=599&format=png&auto=webp&s=cd9f921edf5aeefdc7eccffa587553b744e8923f

How is Ichimoku calculated?

The Ichimoku indicator is made up of five main lines and a cloud. The chart you get will be the one that provides the information about the price action.
This is the information that each component line of the indicator contains:

Tenkan-Sen is a fast line
Kijun-Sen is a slow line
Senkou Span A is the first line of leadership
Senkou Span B is the second line of leadership
Chikou Span is a delay line

Lines one and two are moving averages, while lines three and four are price trend lines in the future, while line five is equivalent to the current price drawn 26 periods ago.
The space that forms between lines three and four is what is called a cloud or Kumo. The functions of all these elements are different from each other.

Tenkan Sen

It is a fast line whose purpose is oriented to information related to price volatility. For this it is the average closest to the price.

When they rise, interpret the highs and lows of the last nine candlesticks as rising.
When it goes down, it interprets that the highs and lows of the last nine candles are going down.
When the line stays flat it means the market stops going up or down.

This is the line with the highest reaction range of the Ichimoku indicator. It will not shift even to the right in bankruptcy unlike Chikou's mean lag line.

Kijun-sen

Or slow line, it is oriented to offer information on the long-term volatility of prices, and is placed directly on the price.

If it goes up, it tells us that the highs and lows of the last 26 candlesticks are going up.
If it goes down, it tells us that those highs and lows of the last 26 candles are going down.
If it does not react or go up or down, it reflects a scenario free of ups and downs in the market.

Kumo

The cloud or Kumo arises from the combination of the Senkou Span A and Senkou Span B lines. The main function of the cloud is trend identification.

If SSB is higher than SSA we are in a downtrend.
If SSA is higher than SSB we are in an uptrend.

On the other hand, when the price oscillates in the cloud, we place it in a lateral range or zone of indecision. Whereas, if it is not thin, we are in a moment of low market volatility, and if the cloud is wide, we are in a moment of high market volatility.
How to trade with Ichimoku?
In the same way that it happens with several Western trading strategies that are based on average crossovers, in the case of Ichimoku, buy and sell signals are used based on the crossing of the fast average and the slow average.
Here 's how to trade Ichimoku based on the investment prompts it offers:

If Chikou Span is above the cloud and the Kijun line: In addition, Tenkan crosses Kijun up. This can be a strong signal when the crossover of the lines and the price are above the cloud.
When the crossing of the Tenkan line with the Kijun line happens inside the cloud, it is considered a medium strength signal.
When the price and the crossing of Tenkan and Kijun, is above the cloud, it shows us a weak buy signal. Also, in this case, it can be interpreted as the beginning of an uptrend, or the end of a downtrend.

Advantages of Ichimoku

It is a more complex indicator than others, but it has some powerful advantages to be taken into account by the investor.

It allows us to quickly choose those configurations or preferences in a very efficient way, in addition, it makes it easier to understand the direction of price movement, and other variables such as sentiment, momentum and trend strength.
It is a system that allows trend charts. Therefore, it performs better in trending markets. The way it helps to look for trends in price movement, it provides the trader with a good perspective to understand the direction of price movement.
Ichimoku allows detecting price failures and breakouts, precisely because the system helps to capture the direction of the trend in the time frame in which it operates.
It is an indicator that allows decisions to be made with a higher level of information than others, since it combines three indicators in a single graph. This makes them show more data and offers greater reliability in the information.

Conclusion

Ichimoku is a solid system that allows a more complex level than others and, in turn, a large number of strategic possibilities, thanks to the variety of the components that make it up.
The ultimate objective of this indicator is to quickly offer us an overview that allows us to understand the market and take advantage of opportunities, and even adjust it over a longer period of time to detect such opportunities.
It is therefore a very versatile system, which will be able to offer us support and resistance levels, but it is also aimed at identifying trend directions, measuring impulses and, of course, offering us trading signals.
Within the different trading indicators, in this case, we see how decision-making improves compared to other options, mainly due to the increased levels of information, thanks to a greater volume of data. It is a classic within the systems aimed at providing trading signals to the trader.
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Parts of the Ichimoku graph

Conversion line (tenkan-sen)

Baseline (aka 'confirmation line', or kijun-sen)

Lagging Span (Chikou span)

How to use lagging span

The Kumo Cloud

Reading the Kumo Cloud

Strategies for using Ichimoku

Conversion line/Baseline Crossover (Kumo filter)

Buy/Sell Signals using the Kumo filter

Cloud Crossover Strategy (lagging span filter)

Cloud Strategy

Kumo Cloud Breakout

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Ichimoku Cloud: What Is The Trading Indicator And How Is It Used?

Ichimoku is an indicator capable of defining support and resistance levels, identifying trend directions, measuring momentum and providing trading signals.

What is Ichimoku?

How is Ichimoku calculated?

Tenkan Sen

Kijun-sen

Kumo

Advantages of Ichimoku

Conclusion

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